How the LQMT-MATERION is Key to LQMT making money from Apple
Materion and Liquidmetal have partnered together for the manufacture of any formulations covered by Crucible Intellectual Properties.
Materion of Cleveland, Ohio is a conservatively managed $1 billion plus Company. Do you think they plan to make money off of Liquidmetal ingot sales for the huge investment they have made up front?
As you know, the Materion-LQMT partnership will make money off the sales of liquidmetal ingots, NO MATTER WHO IS THE CUSTOMER.
Of course, another company could buy the elements of Zirconium, titanium, beryllium, copper, and nickel (or variations with a few other elements including gold, silver, etc.) and make their own ingots. However, such a company, analogous to Materion, would have to pay a big royalty to Liquidmetal. Further, they would not have the purchasing power of Materion to get rock bottom prices on the elements needed for the liquidmetal formulations. finally, there is a big risk in handling beryllium and other elements as they are very toxic. The bottom line is this: Why re-invent the wheel only to pay higher prices at higher risks to compete against Materion.
SO, the underlying principle is this: Materion-LQMT partnership will be supplying all the liquidmetal ingots to ANY USER in the world and Liquidmetal Technologies will be siphoning off their percentage of the Materion-LQMT partnership revenue stream.
Pretty damn clear, isn't it.
It will be extremely interesting to listen to Materion's conference call. They have already singled out Liquidmetal in a previous quarter when they added amorphous metals ingot manufacture to their Berrylium Division as future revenue streams.
They have been supplying Ingots to customers for 5 months now.
HELLO? I expect to hear more details tomorrow, now that they have been supplying customers with LQMT alloys since December.
Hope to hear what revenues may have occurred because of their production. Or, at the very least, what their inventory of finished ingots is (i.e. stockpiling for the APPLE releases)
I suspect we are going to get a big bounce on Monday after all of the Materion info is factored in.
I am fully loaded for the ride up/
Don't be shaken out at these rock bottom prices.
Remember, Materion can make these ingots in several locations around the world. This then benefits any of the contract manufacturers who will be injection molding parts or products on the Engel machines, especially for companies requiring a minimum of two sources of supply.
while the main operation is in Materion's Berrylium divisions Elmore, Ohio plant, several overseas operations can easily perform the same ingot manufacture.
Enjoy the Materion CC tomorrow. I believe it has the potential to certainly be more enlightening about Liquidmetal than the Apple CC yesterday, especially since Materion has targeted liquidmetal ingot production and sales to be a new growth segment of the beryllium division.
