Proxy for AGM asks for authorization up to a 20 to 1 reverse split. How many have noticed the part where
they nevertheless maintain the current authorized share count?. What this means is that insiders can continue to dilute pretty much ad infinitum, if for no other reason than to keep the extravagant compensation plan running, irrespective of results for general shareholders. This is where you see the separation from the
loyal retail holders, who are also put at risk of being shorted out by this R/S. Insiders will not share your fate.This Is SOP for early biotechs, most of which fail and even the ones that carry on, do so by washing out their original retail investors. Watch and learn. JMHO.
"Comparing the fundamentals of a global insurance company like AIG to that of a young biotech company like BCLI is comparing apples to oranges" Spin, spin, spin, that is all you have. I cited AIG as an example of an R/S which worked, the point being BCLI is nothing like AIG. Try a course in reading comprehension, along with your mail order Cliff notes on investing. Here is a clue. Investing is gambling, but with the odds in your favor. Exposing yourself to being shorted out following an untimely R/S doesn't do it. You can buy in later for a little more but keep your sharecount. Listen and learn.
R/S is rarely successful, for very good and obvious reasons. It does not change the fundamentals. This company would need at least a 15/1 RS to get the price over the $5 threshold that most funds require to invest.
At a $5 price and no change in fundamentals, the shorts would have a bonanza and ride it right back down into the pennies, washing out the longs (who would have 1/15the their original sharecount at $.35). Wash, rinse, repeat. Make no mistake, the insiders will not share your fate. They simply issue themselves new subscription rights at a great price. You do not get that benefit. On the other hand, an R/S can make sense under a couple of different scenarios. For example, when a company has solid fundamentals but for some reason the stock is in disfavor. AIG is the perfect example. A London subsidiary got into credit default swaps
which had to be bailed out and much of the group sold off, but the insurance business that was left was rock solid, so they did a high ratio R/S and the price held and the company is prospering.. Another scenario has to do with timing. As other posters have noted, you only want to see a reverse split (if at all) when the company has a clear track forward to grow. Contracts, product approvals, etc. Ironically, if that is the case, you probably don't really need an R/S because the company is succeeding the old fashion way, through creativity,
hard work, and leadership. In other word, you only want to see an R/S when their is very little chance the
shorts will take it out. This company is nowhere near that point in my view, and the timing for an R/S is
wrong, at least for longs. JMHO.
Jimmy the pump and dump I am observing is the recent trading itself .....small trades to drive the price up, followed by dumping of larger trades. It is classic, but maybe it is just temporary phenomena?. Let's watch. No news at all, though there is presumably cash available for a bulletin or two.....all of which raises yet another red flag. SOP here.
Yep, bailing out for whatever they can get. Not much more to keep this story going if the seals aren't working, maybe the whole thing is a dud. ANybody know differently?
Michael, you have put your finger on it. Serious long investors (if there are any left) are looking way beyond a $2 risk/reward target (forget the penny stock traders), and have often talked of $10 and much higher for this disruptive technology. The fact that the company has recently piled on 400 million shares and potentially 700 million shares of dilution, surely takes those expectations out of the foreseeable future. There are just too many shares. The only real value the company has at the moment is the IP, which in any event has been surrendered to an untested extent to the likes of Visser and Apple. Apple paid $20 million for the CE so let's
let's extrapolate that to $100 million tops for the rest. Do the math. The current price range is about right.
You can trade this on news, but not on fundamentals, that is a long way off if ever. Dilution and (a one time) sale of IP is their only meaningful source of revenue, so expect more of that. JMHO.
It looks to me like the trading activity, pump and dump, signals that someone is trying to unload. No follow up news, nothing on the seals, this could be the final curtain.
Yes, if you are a trader it is the annual Apple fiction that bolsters the price on speculation, then drops after nothing happens. For longs, at very best Apple may use liquid metal at some point, but there is no reason to conclude they will pay one dime to LQMT as a result.
It looks like this is again spiking up in anticipation of news from Apple. This is a regular occurrence, and always ends the same way. Zip for LQMT and the price heads back down. Penny stock daytrader heaven.For longs, just another opportunity to live with disappointment.
$20million was for perpetual rights to the IP, no royalties included in the deal. Apple does not have to pay LQMT one dime more to use the patents, buy the material, make the parts, and put them in Apple
consumer electronic parts. Today Motley Fool's Symington, who is the tech analyst, set forth 3 companies that could benefit from the Iwatch, such as GTAT, talked about sapphire screen, scratch resistance case, did not mention LQMT. Sorry.
Going to break .20 because there is nothing whatsoever to hold it up. Time to hear from management with
some real news not just the usual hope and dilute business strategy that has been going on for so long.
No credibility, time to deliver or get the heck out of the way.
Darth-trader: " I like the fact that the company has contained headcount "..One person could have created
partnerships and probably did. Using the one Engel machine to develop prototypes.....an engineer and/or
a machine operator. Marketing? Are you serious? Look at the track record. Okay, one marketing manager.
A secretary and a clerk. Throw in a CFO. That comes to 5. What do the other 14 do? Being a little facetious
here, but given the history of poor performance, even non-performance as far as shareholders' best interest is concerned, something is not working within this very "structure". What is the path forward for this company to make money before it runs out of it, and reward its shareholders? So far, I have not seen one hard piece
of evidence (like a substantial new contract) that gives the answer, and the management remains silent
other than speaking in hopeful generalities. How about some hard revenue numbers with dates attached to them, with accountability if they fail to deliver..........like serious companies do. Management is a failure per se, because the company has failed to deliver, for many years. A decade. And I still do not understand where their revenue is going to really come from. Apple? Engel? Materion? Visser? Sale of IP? Their own products? Every time we look at that salad of options, ask about that, it seems to be wishful thinking or
no comment. Half of the people here think Apple is going to either buy the company or MERGE with it, it seems. Jeez Louise.
DO you ever wonder what these 19 employees do all day? Mostly executives (well there can't be managers, can there? Who would one manage?). Probably some secretaries to answer the occasional phone call and file all the papers needed to stay open out their in CA.. Outside lawyers probably file all the paperwork for
dilution and new subscription rights for insiders, which seems to be the most prolific activity. Well there is the IP ( derivations on Cal Techs ground breaking work) and accounting. I am sure I am missing a lot, but then when I look at the actual performance of the company all these years, what would it be and was it worth it? JMHO.
They may use liquid metal the material, but show us where they are obliged to use LQMT the company.