Liquidmetal Technologies Inc. (OTCBB:LQMT) Surges Before The Holiday
The stock of Liquidmetal Technologies Inc. (OTCBB:LQMT) is almost guaranteed a place among the top traded OTC stocks thanks to the license agreement they made with Apple Inc. (NASDAQ:AAPL) back in 2010. Now whenever Apple is about to launch a new product rumors start flying around that they are going to use the amorphous alloy liquidmetal. Well, up to now all the rumors have turned out to be nothing more than wishful thinking with Apple only using the material in their SIM-card ejection tools.
As you can see in mid-July LQMT made a rather impressive jump right before the unveiling of the new iPhone 5. Although the liquidmetal material was once again neglected by Apple, LQMT have been able to largely sustain most of their gains in price share. For the last five months their stock has been fluctuating quite a lot around the $0.16 mark. During Wednesday’s session the ticker remained mostly flat but an hour before closing time it suddenly spiked and finished the day nearly 10% up at $0.185.
During the last quarter LQMT were able to progress along with their business plan but the company is still nowhere near being profitable. According to the quarterly report they had:
- $3 million cash
- $4 million total current assets
- $947 thousand total current liabilities
- $456 thousand revenue
- $6.7 million net loss
The amount of net loss was significantly higher than the previous quarter due to the change in the value of LQMT‘s warrants. Shareholders have also been hit with significant dilution of the common stock with 112 million newly issued shares for the months between February and October.
On November 8 the company entered into another common stock purchase agreement with several institutional investors. Under the terms of the deal LQMT may sell up to $20 million worth of common shares to the investors over the next 36 
months. Although these funds are going to assure the continual growth of their operations if the revenues don’t increase significantly the dilution may have detrimental effect on the performance of the stock.
months. Although these funds are going to assure the continual growth of their operations if the revenues don’t increase significantly the dilution may have detrimental effect on the performance of the stock. 