Liquidmetal Technologies, Inc. (OTCMKTS:LQMT) Explodes On New Speculations
On Friday the stock of Liquidmetal Technologies, Inc. (OTCMKTS:LQMT) made a sharp change in its direction and it surged up the chart. In the six and a half hours of trading more than 24 million shares changed hands while the price gain was even more impressive – LQMT added close to 30% to its share price and closed the session at $0.242.
We have been following the company for quite a while and by now it is safe to assume that this latest surge has also been caused by Phone rumors. More specifically investors are hoping that the amorphous alloy liquidmetal will be mentioned during Apple Inc. (NASDAQ:APPL)’s annual developer conference taking place this week.
Back in 2010 LQMT entered into a Master Transaction Agreement with Apple and investors have been expecting liquidmetal to be a vital part of a product for some time now. So far all the speculations have been proven wrong but there certainly are encouraging signs – Apple has been granted a couple of patents relating to the use of liquidmetal and more importantly they extended the term of the transaction agreement until February 5, 2015. Still it is important to note that even if the metal is indeed used in a product LQMT will not receive any financial compensation from it.
On its own the company is still operating at a heavy loss. According to the quarterly report covering the period ending March 31 LQMT had:
On its own the company is still operating at a heavy loss. According to the quarterly report covering the period ending March 31 LQMT had:
- $6.9 million cash
- $7.3 million total current assets
- $921 thousand total current assets
- $160 thousand total revenue
- $3.9 million net loss
Thanks to the limited revenues currently being generated LQMT has been relying solely on its common stock in order to finance its activities. Back in October the company entered into a $20 million purchase agreement but by now they have used $11.5 million of that sum. As a result the number of outstanding shares is now more than 440 million out of the 700 million authorized.
LQMT were able to settle their legal troubles with their manufacturer Visser Precision Cast, LLC but as part of the settlement the lock-up restriction on the 29 million shares owned by Visser were removed. Some limitations were imposed though. Visser can immediately sell 7.5 million shares, followed by another 10 million three months after date the agreement and another 10 million three months after that.
LQMT certainly are a promising company but they have yet to establish solid operations. Not to mention the volatile nature of 
the stock that makes impressive climbs aided by rumors and speculations but quickly falls down if left on its own. In early trading today it is already starting to show hesitation sitting less than 2% in the greent at $0.246
the stock that makes impressive climbs aided by rumors and speculations but quickly falls down if left on its own. In early trading today it is already starting to show hesitation sitting less than 2% in the greent at $0.246On Friday the stock of Vapor Hub International Inc. (OTCMKTS:VHUB) crashed by more than 11% and slid down to $0.56 per share. After the weekend though it seems that the negative momentum has only picked up even more speed and at the start of today’s trading the stock is hurtling for the bottom of the chart currently down by 21% at $0.43.
