Georgi Kamburov

Liquidmetal Technologies Inc (OTCMKTS:LQMT) Jumps Up

by Georgi Kamburov May 31, 2016

Last Wednesday Liquidmetal Technologies Inc (OTCMKTS:LQMT, LQMT message board) registered their current 52-week high of $0.187 per share but ultimately closed the session with a loss of 5%. The following day was no better with the loss in share price increasing to 9%. On Friday, however, investors showed that they are still excited about the ticker and as a result LQMT recovered by 7.54%, closing the week at $0.164 per share. Will the stock soar even higher up the chart when or will the positive momentum lose its strength during the long weekend?

Well, LQMT is definitely among the more attractive choices out there. In March the company announced that it had entered into a securities purchase agreement that is going to bring $63.4 million in fresh funds. The first 105 million shares were sold on March 10 at $0.08, which is over 50% below the current market price, for $8.4 million in proceeds. The rest of the shares are expected to be sold by August 17 and will have higher prices - 200 million will be sold at $0.15 and 100 million will be priced at $0.25.

Even though this deal is enough to set LQMT apart from the majority of the other pennystock companies jumping in without doing the necessary due diligence is still extremely risky. So far the financial results of the company have remained rather underwhelming. In our previous articles we told you that the revenues reported by the company for 2015 were 79% below the results for the previous year.

The quarterly report for the first three months of 2016 was far more encouraging with the reported revenues showing an increase of over 500% on a year-over-year basis. The fact remains, however, that the $168 thousand in generated revenues are completely overshadowed by the total operating expenses of $2.5 million and the net loss of over $9.1 million.

For 2015 LQMT received 9 product orders with two in production as of March 18 when the company held its latest conference call. This year the management team of the company expects to be able to secure 10 to 15 new customer orders. Even if this is indeed the case investors should keep in mind that profitability is still going to be far away.

No matter how excited you might be about the potential of a certain pennystock company you should never take the red flags around it lightly. LQMT is not an exception and any trades involving their stock should be preceded by thorough research and careful planning. 

In early trading today LQMT is jumping up and down the chart currently sitting less than a percent in the green at $0.165.

Comments 0

Type the characters that you see in the box (5 characters).