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My guess is we are being manipulated in the service of accumulation--translating into "don't let it run while positions are being established". Enjoying the sustained solid performance from management.
glta
Thanks Berthabluefish,
I haven't been paying enough attention to Hemodefend.
glta
Bertha, what do you mean by "take" Hemodefend? Thanks.
Agree Jacquescode.
Chan has done a great job creating meaningful awareness, both with p.r.s and the "case of the week format"--that I enjoy reading much more that I would have guessed. Well run, Q over Q sales growth, good communication. I'm excited about things unfolding here. Would not be surprised if accumulation games are the reason this stock is not moving. Looking forward to 2017.
glta
True MrDots, you never can be sure of what might be waiting just around the corner. I see our corporation steps as signs of confidence in how business growth and revenue will unfold at QMC. But I'm not too excited about x-mas gifts at this point. Who knows!
Best of luck to all,
Thank you ih8aloss, more confirmation that the company is moving carefully, deliberately, and is willing to share what it can with shareholders. I've been very curious about updates from QMC-asia so appreciate that question. I don't think its too much to expect some sort of update regarding Solterra and/or QMCA before year end--but I won't hold my breath.
Spartak, lastly, one of the key reasons I drew CTSO into the conversation was the way the uplisting/RS helped them gain access to non-dilutive capital. It could be that a QMC production contract that begins with little revenue (as build out, etc occurs) helps anchor a relationship with a bank willing to build toward that revenue. Listing on a major exchange, it appears, is a key part of building that kind of banking relationship. I'm interested in access to non-dilutive capital as quickly as possible.
Agree. Multiple possible scenarios. But no significant revenue in 2016 is rapidly becoming fact.
Best,
Spartak, no, and I didn't really expect to.. I think Sri has been clear about NOT controlling the timing of major events and contracts. The reality of us being such a small fish in dialog with big fishes confirms this for me. As you well know, QMC has very limited control of the flow of information with partners and potential clients at this point.
Clearly qmc has multiple scenarios to cover in the near future (my thinking here). 1) a big production revenue generating contract is signed, 2)a little contract gets signed, 3) a signed contract get pushed out til??. In any case the corp needs to take prudent steps that prepare for the best and worst cases--keeps us funded and moving ahead. Not so easy. If I confirmed anything--reading between the lines--its that Sri is looking squarely at this and being honest about a complicated situation, not overselling the big dream. Certainly he is here to succeed, but fundraising for QMC is still a key issue. Also Ken Werner thought it was unlikely we see production results or prototypes in Jan, but expects to in spring. I wonder what he based that on?
Best
One more rabbit in my hat this Sunday.
Just prior to the release of the initial Dec 2, annual meeting/rs proxy draft, I had a short phone call with Sri Peruvemba. He was in Texas, busy at QMC. I consider his call a sign of positive contact with shareholders (perhaps some concern in advance of the rs and proxy issues). The call was Dec 1, and notes are pulled from my faulty memory after a busy week when I had to turn attention to other matters. My apologies to Sri for any inaccuracies or misrepresentations. Nothing here is claimed to be a direct quote or guaranteed with regard to accuracy. I appreciate Sri's availability to discuss company matters—and I’m pleased to be able to pass along some impressions to fellow shareholders in the spirit of open and honest dialog with QMC management.
Here is a summary:
I had requested some clarification on his (Sri's) role in CLEARink, where he is still listed as vp marketing and was pleased when he reached out in person.
Sri said he continues to have a consulting business and maintains some of those pre-existing relationships. CLEARink specifically has not been very demanding of his time recently. Conversly, QMC has become busier than anticipated. When first in dialog with the Board about becoming CEO there was some consideration of his other activities that would allow him to become CEO but create less drain on QMC limited resources. It sounds like adjustments have been made to see that this balance of things works as envisioned, and that the necessary QMC work gets done.
We spoke about recent pr.
Testing of qd’s is big issue. Past issues have occurred related to differences between in-house testing and client testing of dots.
Uniglobe confirmation is valuable as it puts in place an independent testing facility that now directly aligns with potential client testing. Recent Uniglobe pr is important.
I asked if Nitto relationship was intact.
Sri said yes, ongoing, but confirmed QMC was continuing to explore other avenues (film clients) as well. He spoke very highly of Nitto: very exacting standards, top clients, perhaps best film partner in the world, but it has a hundred different projects, and it sounded like QMC was in waiting mode—(no surprise to hear that).
Sri commented on general separation of quantum dot producers, film producers, and tv/display makers. (obviously samsung doing it all together as been a great advantage in building a two-year lead on the rest of the field). The alignment of all this is tricky and takes the time it takes. Wouldn’t be surprised to see some consolidation—(maybe like the example of Samsung gobbling up QDvision primarily for patent portfolio.) No specifics.
I asked if steps are being taken to market the flow reactor equipment—or develop an equipment division at QMC, or licensing etc. (a pet question of mine based on the explosive growth of Applied Materials in the 1980-90s)
They (QMC) continue to be aware of this—a recent inquiry to use QMC reactors was explored and determined to be not worth pursuing at this critical time. All energy currently focused on QD film. If film was available, it could be sold today. Other issues, possibilities or problems will be deal with if film is successful.
I stated that I appreciated his language in the annual report, recent interview, and press release.
Sri seemed quite committed to clear language—statement of facts and cautious about over-speculating or exaggerated statements or timelines—understands shareholders have endured years of waiting.
Sri reminded me of the necessity of funding thru issuing shares. This, he said, is what we currently have to work with.
----------
Best,
dp60
I'm encouraging our group to look at Cytosorbents Inc, (CTSO) as a case study for QMC that is relevant at this moment in time. Please accept that this is not an effort to “sell” another stock on this board. I do own CTSO (and of course QTMM) and like its prospects, but dislike bb sales games. Cytosorbents is developing a global market for a blood filtration medical device—which is obviously different than qd business. Nevertheless, as an ambitious small-cap stepping into a very large global market, its recent history bears consideration. Following are some relevant points:
In December 2014 CTSO underwent a 1:25 reverse split in order to uplist from OTC to Nasdaq. The company also shifted from Nevada Corp, to Delaware. The company also reduced authorized shares and reduced preferred share count. The goal was to move to a stock price above $4/share for nasdaq listing.
The CEO Philip Chan, in my opinion, did an excellent job of communicating with shareholders prior, during, and since these steps occurred, outlining very clearly the reasons for the changes, educating shareholders, and requesting shareholder support.
In the two years since, the corporation has performed in line with its promises and provides some models for steps, including tone and language that we might want to request from QMC. (read letter embedded in 2014 8-K filling linked below)
In 2015, the year after uplisting/rs, CTSO was included in the Russell index. The company also gained access to supportive, NON-DILUTIVE capital with Bridge bank, things that would not have occurred without uplisting. (See press release linked below.)
Regarding CTSO stock price following uplisting/rs: all shareholder value was of course preserved during rs. Price rose strongly in following months more than doubling. The company then had two relatively minor setbacks: a fast-track denial with the FDA for their medical device in the US.—putting it back on its original approval track, and an internal decision to readjust European sales force—creating a short-lived setback in sales growth. Price retraced to near where it was immediately post rs. In short, the value of shareholder equity has held solid. Consistent quarterly revenue growth has since occurred. IMO price is currently held back as accumulation occurs—but no sign of destructive, dilutive, spiraling due to rs. CTSO is on upward quarterly growth track (anticipating profitability in less than two years) while growing global business and working through tough US FDA process.
CTSO 2014 8-k w/ CEO letter to shareholder
cytosorbent closes 10million debt financing with Bridge Bank
There are key differences—CTSO had modestly growing sales, key revenue generating partnerships, and grant funding at the time of rs, and a clear growth pathway during uplisting process. QMC is waiting, waiting, waiting, but offering higher impact if/when one or more production contracts materialize. If such contracts appear, then by all means we will want to be ready to play in the big leagues. We will want to find non-dilutive capital asap, build partnerships, and become immediately visible to new levels of investment, and guard against hostile takeover. I’ve pointed at CTSO primarily because it is a model of TRUST (or trust but verify) between shareholder and management during a time of important change and shareholder uncertainty. It is a model of how I would like a corporation/management team to behave.
QMC is at a precarious moment. I’m invested in the idea that shareholders and management CAN collaboratively turn the corner and land a big leaque contract. I’m hopeful we can build trust between shareholder and management. As Jamis has indicated, even very good news will take time to turn into revenue, and will take time to create quarter over quarter results and visibility. We will need financing and further investment, and probably face more dilution no matter what. If we somehow miss the display film market opportunity—the situation radically changes as continued, even accelorated dilution will likely become the only option for survival. I prefer to not think about that. I am very encouraged by the steps QMC has anticipated taking.
Best, dp60
Here are 16 more "Kenji Shimada" including one associated with Uniglobe--based in NY. I agree more information would be useful--but fake PR? No way.
zoominfo
Thanks Suny, Facts.
Thank you Trevor for both the link and your summation. So important here is the fact that this talk is tethered to an actual product on the shelves as we speak (listen). Samsung has really swung open the qd door with a remarkable r+d effort. I too find some confirmation here that QMC's flow tech is an essential next step for this young industry as it enters scale-up mode. Samsung must be keeping a close eye on the joint effort from QMC/Nitto.
A lot is riding, in the coming months, on Sri's choice of one word: "promising."
GLTA
With QMC's current market cap. of 26M, Lincoln Park Capital Fund's agreement of 9.75M is, to say the least, substantial. And still less than half of what was pledged toward QMC Asia development. Really getting interesting here regardless of day-to-day share price.
GLTA
Thanks Solar,
New smart-looking fellow investors here. Lincoln Park Capital Fund
Best to all
Agree J45.
I have no concerns here. Just pointing at facts. My only minor take-away is that shareholders interests appear to be looked after and just increased by 2mil. But likely no confirmation to be had of what the full exchange was comprised of.
Best to all
New form 4 filing by Squires.
Sells 346k shares at .06, and gives 2,000,000 shares back to QMC. reducing his holding to 16mil+-.
from form 4 footnote regarding 2mil transaction:
"These shares were issued to the company in settlement of liabilities owed to the Company. No cash value was given to this transaction."
Good luck to all.
Quantam Leap, Nice to see "quantum dots" and "wow" in the same title! Giving OLED a run for its money is where things currently stand, but just around the corner (next 2-3 years), if I understand the technical pathway correctly, electroluminescent qd (Qled) television will be poised to slam the door shut on oled.
Yes RPR, I'm always looking for a shortcut. Ha.
oops, wrote Nisco earlier-- meant Nitto.
Great article! Thanks for posting.
Jamis,
I appreciate all of your research, but this little article appears to be particularly dense and to the point. I re-read it several times.
It concisely does the following:
*sketches out an industry road map thru 2019 based on the efforts of industry leader Samsung
*identifies the crucial shift from photoluminescence to electroluminescence--a huge step, that will be extremely disruptive to the lighting industry (and other LED applications) as well as display.
*states why OLED faces increased pressure in coming years by QLED "lower production cost and longer service life than OLED"
*sets color standard goals for next years photoluminescent (QD Film) products: "98% Rec.standards" that everyone (QMC) has to match.
*identifies a key "bottlenecks" that Samsung (and QMC/Nisco) will have to overcome for QLED next generation success: "production of QLED TVs currently is faced with technological problems, mainly short service life of blue-color QD materials and how to precisely and evenly coat red, green, blue QD materials."
I assume this QD coating issue is related to R2R large volume, high speed, production. Something Nisco must be anxious to perfect in order to extend its dominance of display film market.
Best of luck to all.
Yes EVL, and one QMC year currently feels like 108 Cub years!
This is the first I've heard of a 10% stake in QMC. Has our asian partner been picking up cheap shares from exiting MKM?
It appears clear that the intention is to set up multiple factories in multiple industries. Really difficult, admittedly, to read through translations. Difficult to determine future, past, or present tense of anything stated. Further, it appears that government funding referred to elsewhere on the site Jamis linked us to (news link) is still working its way through government. Interesting reading but lots of ambiguity.
Best,
And another link from same site: "project" google translation:
(Thanks Jamis for these links)
Quantum dots are aggregates of atoms and molecules at the nanometer scale, also known as nanocrystals. Particle size of the quantum dots typically between 1 ~ 10nm between electrons and holes are due to quantum confinement, the continuous band structure into discrete level structure with molecular properties, the latter may emit fluorescence stimulated. The size of the quantum dots emit light with the intensity of its energy (wavelength) is proportional. The smaller the particle size, the optical wavelength after excitation of the shorter (bluer colors), the larger the particle size of the wavelength of the excitation light after the longer (reddish color). Based on quantum effects, quantum dots in the field of solar cells, light-emitting devices, optical and other biomarkers has broad application prospects.
Quantum dot research boom began in the late 90 's. Today, scientists have established a variety of methods for preparing quantum dots. Among them, the most advanced methods of preparation (cadmium-free, low cost) from the US Silicon Valley company ( QMC ). The company will acquire QMC 's 10% stake, acquired QMC market agency in Asia, at the same time and QMC sharing technology in mainland China to set up factories to produce quantum dot material.
The introduction of quantum dot technology will bring a major upgrade to the relevant industries, it is directly related to the liquid crystal display manufacturer, the LED next lighting manufacturers, thin-film solar cell manufacturing, communications equipment manufacturing and other industries.
Jamis, Further links from that site: "about us" google translation:
Societe enrichment (Beijing) Investment Co., Ltd. was established in 2010, it is one of China's most competitive equity firm. The company is headquartered in Beijing, it is located in the political, economic core area, close to the headquarters of major financial institutions, national ministries and the headquarters of large enterprises at home and abroad.
The company's main business is private equity investment, has successfully invested in a number of projects. Latest project focused on high-tech fields, such as hydrogen fuel cells, nanofibers, quantum materials, cancer detection and treatment of diabetes, cancer treatment equipment, railway fault detection.
The company's unique advantage is that the company and a number of international scientific and technological organizations or associations have close ties with the world's most cutting-edge science and technology team has direct contacts with convenient channels to knowledge of the most advanced technology projects and cooperate with them. Currently, there are a number of Nobel Prize winners become the company's overseas subsidiaries consultant or employee, while tracking the Nobel Prize-level scientific research results into more than 50 projects. Therefore, the company can keep up with the future direction of development in a timely manner to guide investment, achieve sustained strong earnings, to lead the industry.
Thanks for the morning reads Jamis.
Re hisense color issue: this exchange points directly at the necessity of getting things exactly right rather than race to be first. The big volume production will only come together for best in class products and that means finely tuned color balancing. So important to have Nitto guiding the development of display film with qmc.
Greetings Dots, I'm envious of your entry point. All I can do is pick up a few more myself and wish us all "the best of good buys".
Yes, agree with both points.
Glta
I wonder, Jamis, if this is Nanoco spreading income out during lean "ramp-up" period or licensee(s) pushing out payments while actual production catches us to what might have been projected. Perhaps a small sign that there is still time, and room to maneuver before these early relationships in this young industry really swing into gear.
Dockzef, interesting excerpt you zoomed into. Nicely aligned with this clip from QMC scientific advisory board:
Dr. Jabbour was one of the founding PIs for the Flexible Display Center (FDC) at Arizona State University (ASU), the Director of Flexible and Organic Electronics Development at FDC, Director of Advanced Photovoltaics Center (ASU), and a Professor of the School of Materials (ASU)
AND Sri's history with E ink.
GLTA
R2R government technology assessment document
QTMM's future is linked to/dependent on developments of R2R, high through-put technology. This document provides an overview and intro to R2R tech including solar, batteries,display films, other printed electronics etc. We are all waiting for R2R processes to beginning utilizing high volumes of QDs. (although this is clearly not the only market as "fracking" developments reveal) No direct connection here to QTMM but good reading illuminating to our road to success.
Jamis, this--"QD on chip technology is expected to be adopted for backlighting in 60- to 70-inch LCD TVs beginning 2017, Epistar indicated."--will be very interesting to keep an eye on next year. Thanks for posting.
glta
I'm very optimistic about QMA as It feels like a necessary reach into the developing center of next gen QD display and solar growth. Very little info to go on however.
Best
More accurately they entered into 50/50 partnership that has apparently become a minority position.
Perhaps due to 3rd party buy-in in exchange for shares. Perhaps the "fund" has acquired shares. Just guesswork.
I have zero knowledge of Hong Kong reporting requirements.
Best to all
Jamis, I was happy to see your earlier post. Inclusion on the EE list is meaningful imo.
glta
JimmyB, correct me if I'm wrong, but Renishaw is selling equipment for the precise guidance of nano-scale, optical-electronic printing processes. This relates directly to highspeed roll-2-roll film production using large quantities Qd's for both backlit film and next generation QD-led films/displays. Outside my expertise, and don't know specifically of any connection to qtmm, but ramping up of R2R and QDs utilization in mass quantities seems to be something they are very keen on. I like this perspective coming from other related industries that are aligning to with QD's. Again, appreciated your post.
Best,
Fwiw, I'm nibbling on .10 shares, but interested in a bigger bite if drift continues into single digits.
glta
JimmyB, thanks for posting this info. Very concise description of roll-to-roll printing processes and technology that applies to next gen. high speed QD film printing/production (and the not-to-far-off world of printed QD-led). I learned something.
glta