Replies to post #105095 on Liquidmetal Technologies Inc (LQMT)

[Eagle1947]

I gotta wonder if a guy like him thinks in those terms .. people who build and create things seem to focus more on the building process and let the wealth take care of itself.

I'm not very wise concerning such things but is seems that Li is the kind of guy who wants to build things rather than move money around to profit in a financial world environment. Not even sure that he would condone his paid minions to dabble around in that arena.

But, we'll see won't we ...

[PatentGuy1]

I guess I don't understand the psychology behind a reverse split. Logically, if you do a RS 10:1, then the SP should go up by a factor of 10. If that were actually the case, then I don't see why Li wouldn't do a RS.

Reversed shares represent a larger % of your holding so you quickly lose % ownership when you sell them.

Selling 1 million unreversed shares would represent 0.0025% of his 400 million shares.
Selling 1 million reversed shares, at an RS of say 1-10, would represent 0.025% of his 40 million shares.

That is true. However, assuming a 10:1 RS and that SP goes up 10:1, if Li wanted to raise money by selling some of his shares, then the number of RS shares Li would sell would be 1/10 of the number of non-reversed shares.

As a side note, I don't think Li can sell any of his shares until LQMT's financial situation is much stronger - increasing revenue coming in and profits - because if he were to sell his shares, that would cause a panic.

I agree that a lower SP allows for a larger pool of potential investors, but I don't think that increasing the share price from $0.225 to $2.25 by reducing the number of outstanding shares from 882 million to 88.2 million is going to drastically reduce the size of the pool of potential investors.

Assuming SP does increase from a RS, then an RS brings us a little closer to being re-listed on NASDAQ. (I know that there are other criteria other than SP, but SP is one of them.) In the future, when revenue is flowing into LQMT, profits are soaring, and the SP is moving above the sweet spot where it is affordable to the average investor, LQMT could always do a stock split to keep the SP in that sweet spot.

I'm not saying the Li will or should do an RS, but I do think it is another tool in his toolbox for fixing LQMT.