Liquidmetal Technologies, Inc. (OTCBB:LQMT) Holds Up on Result Announcement

Liquidmetal Technologies, Inc. (OTCMKTS:LQMT) is in a sweet spot, with well-accepted financial results that allowed the stock to hold its levels, standing at 19 cents, with a small one-percent increase. But the interest is high, $1.4 in buying volumes on the day the results were announced. The levels are similar to the last few trading days.

The second-quarter results that caused increased interest even without promotional emails are as follows:

• $4.2 million cash

• $4.9 million total current assets

• $1.7 million total current liabilities

• $150,000 revenue

• $ 1.3 million operating loss

While the revenues are a bit slower, the CEO Tom Steipp announced the shipping of several liquidmetal prototypes to the automotive industry. This is a new development for the company, as previously it supplied mostly the high tech industry. But the number of prototypes sent remains stagnant, and the quarter hardly marked a real breakthrough for LQMT. The company has narrowed its gross margin, and has a high cost of sales, due to shipping unique details at a high price.

LQMT states that it has enough resources to run operations at least until the first quarter of 2014, and still hopes to expand its experience in mass producing its amorphous alloys. But until this happens, the ticker hangs at quite a high position, and a small or larger correction could come at any moment, if investors are tired of buying. LQMT has longer-term potential, but this may not translate into smooth trends without surprises.

Another strong climber, Sigma Labs, Inc. (OTCMKTS:SGLB) is now trying to recover from a few days of losses, rising again to 6 cents, halfway to its recent heights. The company is also hoping to develop its activity in additive manufacturing, or 3D printing, but even before that the bright promises made the ticker rise to unsustainable positions.

A company with a promising product but still no marketing- another ticker that fits the description is SafeStitch Medical, Inc. (OTCBB:SFES). The company works on an innovative bandaging method using nanoadhesives, but so far is only running on promises.

The next few months may bring back LQMT a few times, and the company seems stable enough to continue for a while. But price fluctuations are quite dependent on publicity, so it is best to avoid investing unless you can afford to come down from the inflated prices.