Replies to post #14133 on Liquidmetal Technologies Inc (LQMT)

[golong22]

Blotty... What does your TA tell you these days? The bollinger bands are tight... As Watts pointed out...

[Watts Watt]

All you post is well and good, EXCEPT:

Materion processes the 5 different elements:
1) buys at the FOB supplier of each element
2) adds in the freight of each element from supplier to Materion
3) must prepare an ingot of the 5 different elements in a vacuum melting environment to produce the requisite purity of the finished ingot required by customers like VPC.
4) adds in the processing fee and inventorying fee
5) adds in a mark-up or gross margin

So the actual cost of the ingot to VPC is probably going to be 1.5 to 2 times the cost of the raw materials.

So, to be safe, a one pound ingot will probably be a lot closer to costing VPC around $50.00.

Then, VPC has to build in the mold charge of, say $100,000 per mold, to each productive cycle.

then VPC has to add their mark-up for production.

I think my prices stand up when all of the cost factors are added in. It is always better to be on the high side, since the market price for elements changes monthly, if not weekly or daily.

We are on the same side.

I do like your calculations: Spot on. As long as we know they are for the purchase, FOB, of the individual elements, and not their combined or ingot cost. Thanks.

[Watts Watt]

Yes I noticed the girl with the IPAD.

I also noticed Materion's policy on dealing with Companies who do not honor the below supply chain requirements:

CALIFORNIA SUPPLY CHAIN ACT
HomeCalifornia Supply Chain Act
CALIFORNIA TRANSPARENCY IN SUPPLY CHAIN ACT DISCLOSURE

Materion Corporation, including its subsidiaries and affiliates (“Materion”), will never use forced, indentured or involuntary labor in any of our operations nor will we tolerate any instances of forced labor or human trafficking. We will also never conduct business with any third parties who engage in human trafficking or other forced labor. This commitment is set forth in Materion’s Code of Conduct, which applies to all Materion employees, officers and directors. Materion also requires its suppliers to annually certify they comply with Materion’s Supplier Code of Conduct (the “Supplier Code”).

The Supplier Code, among other things, specifically forbids the use of involuntary or forced labor, including unlawful child labor, and requires that suppliers comply with all applicable laws and regulations. The Supplier Code requires that suppliers ensure that their subcontractors and agents comply with the Supplier Code, and have adequate monitoring and record keeping systems to ensure compliance. The Supplier Code expressly provides that Materion reserves the right to monitor, review and verify compliance with the Supplier Code. In addition, Suppliers are required to annually acknowledge their compliance with the Supplier Code through an on-line certification procedure.

Any concerns relating to potential noncompliance with Materion’s Code of Conduct or the Supplier Code are investigated promptly. In addition, employees and suppliers who violate those policies are subject to discipline, including termination.

Beginning in 2012, Materion will introduce an enhanced supplier audit program that targets key direct material suppliers to ensure compliance with Materion’s strict policy against the use of forced, indentured or involuntary labor.

I am wondering what implications this may have on AAPL further tightening up its China standards.

Well, at least we have one manufacturer, VPC who meets Materion's criteria.