The steps setting up are continuing currently, this is far from over..
Borrowing some DD from another investor..
The known information - from 2017
1. QMC has regularly updated on the quality of their QD - Red, Green and Blue. High performance and mass producible now.
2. QMC privately showed a QD film at CES in their suite. It was announced that multiple QD film OEMs are developing product for waiting Display makers. No doubt some are ready.
3. We know there is some kind of relationship between GTG (QMA's China partner) and BOE. Last week's BOE PR/News announcing another 1.5MM display factory shows they are gearing up to make QD displays in great numbers. (Q: how many $7B factories will be needed?) Some projections predict BOE will be the world's largest display maker by 2020.
4. In January 2017 GTG announced that China would double-down and instead of the previously announced one R&D (research and QD production) center near Beijing, there will be a second location in Changde, in south central China. The money that China is committing makes it look like the size of the projects are DOE National Lab size. That is a serious commitment. We haven't heard anything since because QMA is a private JV company registered in Hong Kong, and does not have public shareholders they need to keep informed. If QMA is silent, QMC cannot disclose anything, nor are they required to disclose anything, unless they receive income from the JV.
5. QMC negotiated a 50/50 profit split with GTG. QMA has a strong foothold in China, not only in displays, but in products that are developed by these R&D centers that will need QD. The JV was in the works for over a year, maybe as much as two years before it was announced, and it is hands down the best deal that a QD company ever negotiated with anyone.
6. Having QMA in our back pocket means that any company outside of China that wants to stay in business will need to negotiate with QMC, and QMC will be negotiating from a position of strength. QMC has all its ducks in a row - best QD, best manufacturing process, most QD types and options.
7. Finally, two additional points about Steve Squires from my personal experience. First, he doesn't think small, he thinks big. Whatever you think about how big QMC will become, you are thinking small. You can't think as big as Squires thinks. Not possible. Second, he is always working in the best interest of QMC shareholders. When I was there, I don't think a day went by without some financing concern or multinational corporation offering a deal of some sort, but is is Squires laser focus on the first point that knocks all those deals down. Because of the QMA deal, QMC can wait for more deals like it and not have to settle for the first deal that comes along. QMA type deals are the ideal, because they gain maximum profit split while the partner does the majority of the work which then allows QMC to explore other deals and industries, like LEDs and Solar, both of which are potentially bigger than the display market.
That is what we are waiting for, it will be worth the wait, and it will take as long as it takes. It won't take forever, because QMC invested in getting product and process up to production - ready capability and that is a tremendous advantage. Hang in there!
