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Impairment charge, could be reducing the value of over inflated goodwill
Earnings Whispers says LQMT will report 8/20
Don't get your hopes up...Remember the last 8K said that the restructuring cost / expenses would continue into the 3rd quarter of 2019
That article was published tomorrow.. Nice DD!
Grow investment from 60 million to 400 million? It is possible Professor Li's motivation is simply to enrich himself and not steal IP. If LQMT reaches $1.00 he turns 60 million into 400 million. Given that the purchase agreement is between ""LQMT and Liquidmetal Technology Limited, a Hong Kong company owned by Mr. Yeung Tak Lugee Li (“ Mr. Li ”) that was organized for purposes of making an investment in the Company pursuant to the Purchase Agreement.""
It is also possible that the employment contracts which were part of the purchase agreement had a lot to do with the last 3 years of spinning our wheels.
In my opinion Professor Li sees the big picture and knows that Liquid Metal is about to explode worldwide. He must also realize that Lake Forest is much to small to deal with the explosion and the purchase agreement has a shelf life. In order for him to capitalize on his investment he needs to shake things up quickly and make something happen.
How will LQMT make money: It is hard to say exactly when you read the Purchase / License agreement. A few possibilities are:
1) Eontec will have to get written permission from LQMT to sell in LQMT territories. It would be corporate malpractice for LQMT to give written permission without some kind of royalty / compensation in return for the permission to enter LQMT territories.
2) Like the press release stated, LQMT finds a partner with deep pockets and manufacturing capabilities. They then could jointly develop and produce products and LQMT gets a royalty on every product sold in their territory.
3) LQMT partners with other research and development labs to create products. They then shop the products to manufacturers and royalties will follow.
4) LQMT uses Eontec's patents and designs to bring products to market.
"Territories. Eontec shall take such action and measures as shall be necessary to ensure that Eontec Licensed Products are not sold or resold in or into the LMT Exclusive Territory by Eontec or any other party in the chain of distribution (whether as a part of a finished product assembled or produced by a third party or otherwise) without first obtaining the prior written consent of LMT. LMT shall take such action and measures as shall be necessary to ensure that LMT Licensed Products are not sold or resold in or into the Eontec Exclusive Territory by LMT or any other party in the chain of distribution (whether as a part of a finished product assembled or produced by a third party or otherwise) without first obtaining the prior written consent of Eontec."
Where we go from here is anybody's guess but I think that if anything good is going to happen, it will happen before March 2021.
When Professor Li made his initial investment, didn't he say that he had access to unlimited funds? Perhaps, his source of investment capital is tapped out and now his best strategy is to make LQMT profitable ASAP. In my opinion, It seems like LQMT is moving from a strategy of throwing money at the business until it becomes profitable to the old fashion method of actually earning money.
"It smells like an upgrade for business that didn’t materialize."
I have been sitting on the side checking out the conversations for some time now. Last quarter, they gave us a warning that there was going to be an investigation into their business model. It seems like the latest 8 K pr is at least some action towards profitability. An action that many on this list have been wanting for some time. Apparently, the powers to be have realized that the rate they are burning cash is unsustainable. Just maybe, the execs realize that with all the current buzz about Liquidmetal or Liquid Metal that now there is indeed a future for LQMT and they want to be around long enough to capitalize on the future. My advice to LQMT would be now that you have decided to live within your means, stop giving a away free quotes! If you give something away for free that is exactly what it is worth (nothing). Calculate your cost of doing business and charge accordingly for your quotes. There is enough of a buzz going on now about Liquid Metal that industries / businesses will want to be part of the Liquid Metal craze. There will be interest in partnering with someone like LQMT who has experience.
Regarding Prof Li, in my opinion; I don't know what his motives are but I know he is not stupid. If he wanted to run off with IP and didn't care about LQMT. I think he would have fired all the executives, kept drawing a salary of 5 million or so a year until the company ran out of money and then be done with it.
I don't know where this will end up but I feel better about it now then I did yesterday. The company has been living in fantasy land for far to long...
Previous leadership did not understand this principle.
previous motto... "LET'S TAKE MONEY"
As shown by their financial records, they weren't even good at that..
As far as your LQMT stock, do what makes you happy... Glassimetal was started in 2010, I am sure Prof Lee was aware of their existence before he dumped in 60 million dollars into LQMT. Eontec has a tremendous amount of mega customer base for which to draw from. I suspect LQMT will be well on the road to profitability well before glassimetal rolls out their first production machine. As others have said there is plenty of room for more than one amorphous metal producing company in this world. Also, remember that it is not always the best product that gains the greatest acceptance, timing and being in the right place at the right time has a lot to do with it...
In The Graduate, these lines were spoken?
Ben, Mr. Mc Guire,Ben, Mr McGuire. Come with me for a minute, I want to talk to you. I want to say one word to you, just one word. Are you listening? Yes sir. Plastics. Exactly how do you mean? There is a great future in plastics. Enough said, that's a deal.
If this movie was remade today, they would be justified to substitute the term "Liquidmetal" for "Plastics", IMHO..
Thank You all for posting your OH comments.Quite frankly, most of everything that was posted substantiated what I imagined was going on with LQMT.
We are out of the mom and pop stage of giving away free quotes and generating a few hundred thousand in annual revenues.
We are past the poor management decisions.
It takes more time than most people think to turn a ship around. What you all are reporting is that Professor Li has just about completed his turn and we will soon be building up speed headed to the land of profitability In my opinion Professor Li has done a remarkable job!
While the stock volume is small, the LQMT bashing will continue by those who want to make a few pennies manipulating a small market. I think there is now much more risk shorting this baby than going long. In the very near future, there will be a fair amount of people on the wrong side of a trade that has gone south. Once she starts building speed, she is going to be hard to catch...
"Operative term, "behind the scenes" ... every time I hear that said my mind says nothing is going on ... just a term to mislead the masses."
I am sure there are many examples around us of the misuse of the term. My experience proved to me that there were many times I needed to utilize "behind the scenes plans" to get up to speed. Most big business partners do not want to do business with a company that is not ready...
My limited knowledge of MR Li would lead me to think he is a man of great intestinal fortitude, tenacity, and true grit. I will give him the benefit of the doubt for a little while longer..
Got it, Thanks again. I feel fairly confident that Mr Li scrutinized, with the help of many attorneys, every aspect of this MTA before he invested 60 Million into LQMT. In my opinion, he has a vision and he has enough financial wherewithal to see his vision come to fruition. I would expect that, behind the scenes, he is executing plans for a typical corporate turnaround, improving attributes such as:
1) Reinforcing / improving the infrastructure so that LQMT will not fall on its face after the sales start to roll in.
2) Developing and improving the sales channel the China meets LQMT was part of the sales push and corporate awarness campaign.
3) Improving corporate leadership
4) Improving morale of the current employees
From experience, these improvements always take longer than most people expect. I truly believe LQMT is well positioned for a strong steady move up. One thing really impressed me during the first conference call where Mr LI spoke; I am paraphrasing, "I know how to build a Billion Dollar Company, I built one from the ground up. I used to sleep at the factory while doing so."
My two cents...
Thank you for your response.. I am unaware of the TTA, I have never seen that document..
Question About MTA between Apple and LQMT
I have owned and watched this stock for several years, and in my opinion it is poised to take off. I also have been on the side lines monitoring this forum for a few months. It is easy to see that this forum contains some members who have a keen insight regarding LQMT.
Regarding the MTA between Apple and lqmt, one thing has been troubling me since the relationship with Eontech has begun. I have seen post from forum members who have referenced the MTA and I wold like some help reconciling an inconsistency :
It has been widely advertised that Donggun Eontech Co Ltd. has frequently been involved in manufacturing of parts specifically designed for the Consumer Electronics Industry. If you review the MTA between Apple and LQMT Section 10. "Covenant Not to Compete" item 10 (a) is particularly concerning. It seems to preclude lqmt from partnering with any entity involved in the production of parts for the Consumer Electronics Industry.
I know it can be very difficult to enforce all the aspects of the typical "Non Compete Agreement", it usually boils down to the one with the deepest pockets prevails, in those cases that are litigated (we all know who that would be). Does anyone on this forum know if the Donggun Eontec co Ltd / LQMT partnership was sanctioned by apple?