Welcome to our first post on Liquidmetal’s Executive Blog.
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From Lugee Li, CEO
To our investors,
As most of you know, I have invested heavily in amorphous metal technologies, both here with Liquidmetal Technologies and within EON, my company in China. I am deeply committed to the success of these companies and am seeking to maximize synergies between the companies to accelerate progress in the development of low-cost alloys, affordable molds, and high-volume molding machines with the production quality global companies demand.
I met many investors at our Open House and asked for your patience as we develop the capabilities and trusted relationships needed to bring our groundbreaking technology to market. We believe that our strategy is on track, and we are laser-focused on building value for Liquidmetal stockholders.
CEO, Liquidmetal Technologies
From Bruce Bromage, COO
Over the last few weeks, several investors have asked the same questions:
Why has the stock price been so volatile?
Our best answer is that there have been several instances of large blocks of stock offered for sale when trading volumes were not sufficient to absorb them. In some cases, this appears to be activity from investors holding warrants with near-term expiration dates. These warrants have largely been exhausted at this point.
Due to the maturity of our business, our stock is likely to be more volatile than companies with established and predictable revenues and earnings, making it susceptible to speculative rumors. We are taking steps to keep our investors well informed.
Why are insiders trading?
Interestingly, this question arises because historically there have been few insider trades. First, insiders cannot trade when they have non-public material information about the business. All insider trades must be approved by the Principal Finance and Accounting Officer and may only occur within narrow trading windows, typically commencing after earnings announcements and closing weeks before the next earnings announcement. In addition, trading may be closed at any time by the Principal Finance and Accounting Officer. Thus, there are limited opportunities for insiders to trade.
Insiders are significant investors in the company and their overall investments may be especially concentrated in company stock. While they may wish to hold for future gain, there are many personal reasons to trade, such as simply diversifying their portfolio or to make major purchases. We expect insider trades, just as all public companies do.
What is the status of plans for further expansion?
The building power upgrade is progressing well – all required documents have been submitted to the City of Lake Forest planning department. We are awaiting their certification before the power company schedules installation.
We are working closely with both molding machine suppliers to finalize engineering design changes for improved operations, in support of expansion planned later next year. We have sufficient production capacity for the near term.
COO, Liquidmetal Technologies