Stock Report for FiberTower Corp. (FTWR)
  • Stock Report for Fannie Mae (FNMA)
  • Stock Report for Cybex International Inc. (CYBI)
  • " />

    Stock Report for Liquidmetal Technologies Inc. (LQMT)

    Liquidmetal Technologies Inc. (LQMT) is a materials technology company that develops and commercializes products made from amorphous alloys. Its Liquidmetal family of alloys consists of a variety of proprietary coatings, powders, bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. LQMT develops and sells products and components from bulk amorphous alloys to customers in various industries, and also partners with third-party licensees and distributors to develop and commercialize bulk Liquidmetal alloy products. The Company believes its proprietary bulk alloys are the only commercially viable bulk amorphous alloys currently available in the marketplace. In addition to its bulk alloys, the Company markets and sells a line of proprietary amorphous alloy-based industrial coatings under the Liquidmetal Armacor coatings brand.

    Share Statistics (07-Mar-12)   FY












    Symbol LQMT Revenue, $Mn 10.77 30.27 181.1% 17.31 2.91 -83.2%
    Current price $0.24 Gross marg. 45.4% 78.5% 72.9% 92.5% 41.6% -55.0%
    52wk Range: $0.12-$0.70 Oper. margin 41.3% -60.0%
    Avg Vol (3m): 918,936 Net margin 2.3% -15.5% -773.9% -96.1% 254.3% -364.6%
    Market Cap. 31.47M              
    Shares Outstanding 133.90M EPS, $ 0.02 0.03 50.0% -0.22 0.05 -122.7%

    Source:, SEC Filings.

    Investment Highlights

    Liquidmetal Technologies Inc. (LQMT) shares saw an interesting spike on Wednesday just as Apple Inc. (AAPL) was about to unveil its third-generation iPad.  A day earlier, LQMT announced it has commenced shipment of commercial parts to unnamed customers around the world.  The timing of LQMT’s new release made investors speculate that tech giant Apple is using LQMT’s unique metal alloy in its new product.

    LQMT added almost 47% to close at $0.24 as trading volume swelled to nearly 26 million shares, which dwarfed the 10-day average volume of over 540K.

    LQMT holds the exclusive rights to develop, manufacture and sell the only commercially available bulk amorphous alloys. The Company’s amorphous alloys, or Liquidmetal alloys, possess a combination of performance, processing and cost advantages that make them preferable to other materials in a variety of applications. Its alloys are in many cases stronger, harder, more elastic, and more wear and corrosion resistant than commonly used high-performance alloys. In addition, Liquidmetal alloys have the ability to be molded into highly finished products without costly post-finishing processes.

    LQMT inked a license agreement with Apple in 2010, which gave the latter “a perpetual, worldwide, fully-paid, exclusive license to commercialize LQMT’s intellectual property in the field of consumer electronic product.” LQMT enjoyed a full-year revenue increase of 97% to $33.3 million, which it attributed to a license fee from Apple.

    Shares of the Rancho Santa Margarita, CA-based company have risen 47.8% in the last five days and 86.1% in the last month.  Year-to-date, the stock is down 64.4%.

    Commenting on the latest announcement, Tom Steipp, president and CEO of LQMT, stated that the Company is very excited about the use of amorphous alloy technology to deliver stronger, lighter, and more corrosion resistant parts to its customers in varying industries globally. He added that these initial shipments represent a significant milestone in LQMT’s efforts to provide a new class of materials for its customers to consider when designing complex parts.

    LQMT noted in the release that parts delivery began this past December with continuing shipments scheduled for the months ahead. Meanwhile, additional customer parts are scheduled to be part of the manufacturing pipeline in the coming months as the Company continues to ramp its production capabilities.


    Financial Summary

    LQMT reported revenues of $2.9 million for the third quarter ended September 30, 2011, down 83.2% from $17.3 million reported in the comparable quarter of the previous year.  The result in the previous year is attributable to a one-time licensing fee with Apple that occurred during the three months ended September 30, 2010.

    The Company ended the quarter with an operating loss of $0.6 million, excluding a one-time settlement charge of $1.1 million.


    Financial Strength (07-Mar-12)




    S&P 500

    Quick Ratio (MRQ) 0.15 0.13 0.73 0.74
    Current Ratio (MRQ) 0.19 0.20 1.11 1.10
    LT Debt to Equity (MRQ) 9.26 14.34 189.87
    Total Debt to Equity (MRQ) 20.24 32.57 247.86
    Interest Coverage (TTM) 0.32 0.02 1.01 30.43

    Source:, SEC Filings.

    Technical Analysis


    LQMT is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for LQMT currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar07-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    RTI International Metals Inc. RTI 22.30 673.48M 39.12 18.74 0.95 0.79
    Titanium Metals Corp. TIE 13.51 2.37B 18.51 13.25 2.01 1.63
    Metalico Inc. MEA 4.38 207.87M 10.19 8.26 0.31 0.30
    Industrial Metals & Minerals Median       12.39 n/a 5.73 n/a
    Liquidmetal Technologies Inc. LQMT 0.24 31.47M n/a n/a n/a n/a

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *