Liquidmetal Technologies Inc (OTCBB:LQMT)’s Rush to The Top
Since the end of last week we had quite a few stocks that made really big jumps in price, over short periods of time. A new addition to the big winner bandwagon is Liquidmetal Technologies Inc (OTCBB:LQMT) who gained a whopping 223% in yesterday’s trade session.
Yesterday was a happy day for many of the people that have already made long-term investments in LQMT, as the price per share jumped 223% up, going from $0.066 to $0.202. The volume of traded stock was also mind-blowing as the total amount of shares that switched hands in the end of they day was above 91 million, generating a trade value of $11.8 million.
Looking at the charts you can see that investors who were waiting for such a rise started dumping like mad as the clock passed 11:00 AM and it was like that through the whole day. That, however, didn’t stop the ascent of the stock’s price which was gradually going up through the trade session. Right before market close the price reached its peak of $0.21, but dropped slightly to close at $0.202.
You may ask what the cause for that vigorous ascent is. Well, there are several reasons for the stock’s price to rise with such onrush, one of which is probably the promising news that could be found in the Headlines section of LQMT‘s Yahoo! Finance profile. The promising news are capable of bringing all the hype for one simple reason: Apple Inc. (NASDAQ:AAPL) is mentioned as a client of LQMT, which always means one thing and that thing is money.
Until now LQMT were supplying the SIM eject tool for the iPhone, but the press release speculates that AAPL‘s iPhone 5 may consist of more parts manufactured by LQMT from their unique material Liquidmetal. Will a deal of that size be able to finally make LQMT profitable? For now, no one knows if there will be such an agreement, so giving propositions if such a deal can finally help the company to have actual income instead of losses aren’t professional. Speaking of their financials, let’s take a moment to check the numbers of prime interest from their report for Q1 of this year.
cash: $5.5 million
total assets: $7.3 million
current liabilities: $4.4 million
total liabilities: $7.5 million
total revenue: $122 thousand
net loss: $3.5 million
They do seem to be doing good for an OTC company with quite a lot of cash, but they have a lot in liabilities also. Probably the worst part from the statement is the fact that they have very little revenue compared to their net loss. Even though LQMT are doing rather good financial-wise they are yet to prove themselves as a profitable company, so be sure to do your due diligence and weigh out all the risks for yourself, before making an investment decision.
Another company that is climbing the charts with high percentile movements is TheDirectory.com Inc (OTCMKTS:SEEK) who jumped another 100% yesterday and are currently traded at $0.0012.
