Liquidmetal Technologies Inc (OTCMKTS:LQMT): Here's What We're Looking At

Liquidmetal Technologies Inc (OTCMKTS:LQMT) went for $0.19 a share at the end of March, and at last close, traded for just shy of $0.30 apiece. The company is running up in anticipation of some operational advance (operational developments that we have touched on in the past), and there's a discernible buzz among shareholders about what the future holds. As it is carving out fresh highs, here is a look at what's going on behind the scenes, and what we are watching going forward as supportive of a longer-term bull thesis on the stock.First up, a quick introduction to the company.Liquidmetal is an industrial design and development company that focuses on a lead product type called – as its name suggests – liquid metal. It's essentially an alloy type metal that can be used in much the same way as plastic is as part of an injection molding process. When traditional metal products are made in a factory, individual tools have to be crafted to create said products. The idea behind using liquid metal is that it can be injected into a mold (which is much cheaper than building specific tools) and – as a result – can dramatically reduce the cost of production associated with the end product. Additionally, there are some extra benefits, including strength and finish. Whereas traditional metal products have a crystalline structure, the molecular structure of liquid metal is random. This removes some of the inherent weakness associated with crystalline structures, and – or so the company thinks – makes liquid metal a potentially more attractive low material across a wide variety of use cases.Some reading might remember that this stock was once associated with tech giant Apple Inc. (NASDAQ:AAPL). At one point, the latter held pretty much the entirety of the company's usage rights in the consumer electronic department – and to some extent, it still does. However, Liquidmetal is about far more than being an Apple supplier right now. The company took a $60 million investment last year from a Chinese billionaire who now serves as CEO and has spent the last six months cutting costs and repositioning the company as the leader in the development and provision of this type of metal product.Latest financials just hit press, and while there is not much of note in the numbers themselves (as we said, the company is in a repositioning phase right now, so current numbers don't represent particularly accurately the potential for future numbers), there's plenty in the filing worth touching on. Our primary focus, from an investment thesis standpoint, is a fresh production facility that Liquidmetal has purchased in California with some of the money that came on the back of the above-noted $60 million investment. It's a 41,000 square-foot facility, and by way of a deal struck with one of the new CEOs other companies, has just been kitted out with two top the range hot-crucible amorphous metal molding machines.There is an open house scheduled for the end of the summer at the new facility, and we think the company's willingness to hold such an event is indicative of a potentially near-term announcement related to a large contract. Why? It's tough to imagine a new CEO showing a group of shareholders, investors, and others around a fresh 41,000 square-foot facility without also being able to explain the facility is going to be putting to use. With a contract, or contracts in place, the open house event is a far more attractive offering for all parties, and while it's speculative to say that we should see a contract announced before the event itself, it's far from an unreasonable conclusion.Also worthy of brief note, and as we touched on in previous coverage (and as the most recent financials have confirmed) management is working to put costs ahead of what we see as a relaunch of the company's efforts and assets. By way of a reduction in employee compensation, operational costs and research and development costs are down on a year-over-year basis.Dilution isn't a concern here, with the above-referenced capital injection playing into cash on hand of around $40 million as of the end of March 2017.We will be updating our subscribers as soon as we know more. For the latest updates on LQMT, sign up below!Disclosure: We have no position in LQMT and have not been compensated for this article.