Liquidmetal Technologies, Inc. (OTCMKTS:LQMT) Warms Up Ahead of Earnings Call

Liquidmetal Technologies, Inc. (OTCBB:LQMT) was a company partially neglected due to the extraordinary interest in marijuana stocks. Still, LQMT promised big developments for 2014, so we have to check it again and see if its product prototypes have achieved a wider reach. LQMT had a decent run up to its annual results announcement, but went into another bout of depression in the following days. LQMT0507.png

On Tuesday, LQMT slid down nearly 10% to $0.191, as dollar volumes were a bit above $679,000. It is easily seen from the graph that LQMT is far from the volumes at the beginning of the year, and far from the peak price at $0.40. Now, LQMT has another chance to entice buying, in the hours left until its conference call, scheduled for May 8th, at 4:30 PM Eastern time.SGLB0507.png

On the positive side, LQMT has not seen paid promotions since the summer of last year, and its PR is rather subdued. Still, LQMT has rather big expectations of being a leader in the amorphous alloys business. This year, the company will attempt to offer prototypes to the automobile industry. But its biggest bet was the potential to create a component for Apple’s iPhone.

As for the financials, they are much more robust compared to other OTC companies, but still LQMT remains burdened by great losses and debt incurred during the period of development:

• $3 million cash
• $4 million total current assets
• $947 thousand total current liabilities
• $456 thousand revenue
• $6.7 million net loss

This would translate into longer-term perspectives for the company. Unfortunately, this also means that LQMT could go through droughts where investors lose their patience, and the company fails to update on its achievements.

LQMT resembles the bid of Sigma Labs, Inc. (OTCMKTS:SGLB), the producer of 3D metal printers. SGLB is having its ups and downs, mostly fueled by expectations that the company would finally make a breakthrough. SGLB was strong at the beginning of the year, but went on to sink and recover in several bouts. Now, SGLB will have to prove that its 3D printing bid will translate into improvements in the bottom line. SGLB saw some recovery in the past days, toward $0.16.

Speaking of promises, this is the signature of pharmaceutical companies. In the case of Advanced Cell Technology, Inc. (OTCMKTS:ACTC), the stem cell company headed by Dr. Robert Lanza, the promise also meant a fast fallout for the stock price. ACTC gapped downward after touching $0.10, and is now back to $0.06.

If you believe LQMT would awaken and the current price is a bargain, keep in mind that the stock looks rather volatile, and positive trends are often followed by significant corrections. Avoid over-investing, despite the promises of the company.

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