We profiled Liquidmetal Technologies Inc (OTCMKTS:LQMT) to our subscribers when it was trading at mere 20 cents and looks like LQMT is all set to garner attention from big boys on WallStreet. Liquidmetal Technologies Inc (OTCMKTS:LQMT) is an extremely interesting name in the materials space. The stock is always at the center of many speculative narratives given its central position on the frontier of product development for products such as the iPhone and other devices. More recently, the angle for the company has been toward advanced amorphous materials for medical and automotive applications. Hence, traders must always take very seriously any sudden movement here, such as we have been witnessing in recent weeks, because there is no telling the type of contractual deal that might be taking root and on the verge of hitting the newswires.
The latest catalyst for shares is an announcement that it has received two hot crucible amorphous metal molding machines from Eontec. According to the release, “These Machines allow the production of amorphous alloy parts that are up to three times larger and one-third the cost of established technologies. This technology complements LQMT’s well established cold-crucible systems, which are capable of producing parts that meet requirements for the most demanding medical and automotive applications.”
Liquidmetal Technologies Inc (OTCMKTS:LQMT) is a materials technology company that designs, develops, and sells products and components from bulk amorphous alloys to customers in various industries. It offers components for non-consumer electronic devices, including aerospace components, defense parts, medical devices, sporting goods, leisure products, automotive components, and industrial machines.
The company also provides liquidmetal alloys for use in the aerospace, automotive, defense, medical/dental, non-consumer electronics, and sporting equipment applications; and designs and develops components for aerospace and defense customers. In addition, its products related to various medical devices include specialized blades, clamps, tissue suturing components, dental devices, and general surgery devices, as well as tissue manipulation devices and orthopedic instruments utilized for implant surgery procedures.
Further, the company sells tooling and prototyping parts, such as demonstration parts and test samples for customers with products in development; and offers product licensing services. Liquidmetal Technologies, Inc. was founded in 1987 and is based in Rancho Santa Margarita, California.
The company is on the playing field with several other key specialty metals names, including Commercial Metals Company (NYSE:CMC), Alcoa Corp (NYSE:AA), and Precision Castparts Corp. (NYSE:PCP).
From the company’s press messaging, they frame themselves as “the leading developer of amorphous alloys that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. Liquidmetal Technologies Inc is the first company to produce amorphous alloys in commercially viable bulk form, enabling significant improvements in products across a wide array of industries.”
It All Adds Up
As discussed above in our introductory notes, the news of the company’s acquisition and receipt of two hot crucible amorphous metal molding machines from Eontec has clearly energized shares of the stock. In understanding this reaction, it’s important to correlate with it another earlier press release: it’s late March announcement that it has passed additional pre-screening biocompatibility tests for use in medical implants and is now pursuing collaborations with medical implant companies.
Together, these developments provide a credible framework for the market to start pricing in the company’s larger advantages in the space as it moves toward medical and automotive applications, likely in the role of a market disruptor.
“We are making excellent progress on our plans to significantly expand our market reach and the scale of our operations. Our hot-crucible machines provide the benefits of amorphous alloy technology to price-sensitive applications that were previously beyond our reach,” said Dr. Bruce Bromage, Liquidmetal’s EVP of Business Development and Operations. “I am pleased to be able to join the technology we have developed at Eontec with the exceptional talent and expertise within Liquidmetal,” said Professor Li, Chairman and CEO of Liquidmetal.
In the big picture, what makes this stock special is the type of solution it can provide.
Liquidmetal alloys are proprietary amorphous alloys that possess a combination of performance, processing, and potential cost advantages that the Company believes will make them preferable to other materials in a variety of applications. The amorphous atomic structure of bulk alloys enables them to overcome certain performance limitations caused by inherent weaknesses in crystalline atomic structures, thus facilitating performance and processing characteristics superior in many ways to those of their crystalline counterparts.
The technical breakout we have seen in recent trade is an important signal that the market is responding to the flow of headlines in this name right now. Hence, with some degree of established momentum now in place, traders and investors are encouraged to keep close tabs on developments in this cutting-edge name.