Liquidmetal Technologies, Inc. (OTCBB:LQMT) Surges on News

Early in the morning yesterday Liquidmetal Technologies, Inc. (OTCBB:LQMT) released a press article that got investors all fired up. As a result the stock surged almost 20% up and returned to $0.15 per share putting an end to its three-week downward slide. The increase of the traded volume was even more dramatic reaching 10 million shares, around 5 times more than the previous session.

Despite the positive movement the stock is still 7 cents lower than the highs from July. Back then the company jumped from $0.07 to $0.20 in just a single day. The reason for all the hype was a rumour that their liquidmetal alloy is going to be used in the iPhone 5 due to their licensing agreement with Apple. Well, this turned out quite differently when the iPhone was officially presented but LQMT are still managing to keep most their gains in price.

Yesterday’s article featured Engel Austria GmbH, a certified partner of the company. LQMT have delivered the induction melt system that is capable of manufacturing liquidmetal components marking a step forward towards the commercialization of the technology.

The company is actively trying to find all kinds of uses for the amorphous alloy creating numerous prototypes. In the second quarter of 2013 they shipped 5 more of them – 2 for the automobile industry, one used as a substitute for the traditional medical clamps and the final two are going to be tested in golf clubs. Investors should keep in mind that despite its potential LQMT is nowhere near being a profitable company. According to the latest financial report they finished the period ending June 31 with:

• $4.2 million cash
• $4.9 million total current assets
• $1.7 million total current liabilities
• $150 thousand revenue
• $1.9 million net loss

In July they were able to write a senior convertible note in the principal amount of $12 million off of their balance sheet at the expense of further dilution by 18.6 million shares. As of the time of the filing of the report the outstanding amount was 369 million shares out of the 500 million authorized.

LQMT have enough cash reserves to sustain their operations for the time being and the next report should shed some light on their recent progress. Investing in the company, however, should still be preceded by doing your own research.

Yesterday may also mark the end of the Awesome Penny Stocks pump for Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT). All the traders who failed to bail out in time watched as the stock plummeted towards the bottom losing more than 17 cents, or in another words, 60% of its value at the end of the day.