So far, current year has been a roller coaster ride for the stock price of Liquidmetal Technologies Inc (OTCMKTS:LQMT). In past, any announcement coming in from company HQ was enough to support stock’s price and boost volume. However, they were short-lived, and later followed by sharp decline.
The momentum
The stock price of Liquidmetal was trading around the $0.13 mark in the first half of April, and later surged to 15 cents for no reason. It surged to over $0.1569 on May 4, 2015 but erased gains the very next day. Meanwhile, the company released its quarterly report for the year on Tuesday and reported cash of $6.2 million. The current assets came at $8.6 million while $901,000 came as current liabilities. The total liabilities stood at $3.92 million. The quarterly revenue was $23,000 while the company posted quarterly net loss of $2.47 million
The analysis
The quarterly report shows that Liquidmetal has a decent cash amount for its use. However, the revenue declined by 85% compared to same quarter a year earlier. Also, the company used just $4 million of the cash for operations in 1Q, indicating no change in operating expenses. The reason for a drop in revenue seems to be big compensations to the management. The pay that most executives received last year was almost double compared to FY2013 while the revenues declined by 40%.
The compensation
The pay of Mr. Thomas Steipp, the CEO of Liquidmetal Technologies Inc (OTCMKTS:LQMT) was $1 million almost three times bigger than the company’s revenue of the year. In last trading session, the stock price of LQMT gained more than 3% to close the trading session at $0.135. The gains came at a share volume of 3.28 million compared to average share volume of 1.09 million. Considering this, LQMT remains a risky investment and investors should analyze the various factors before investing any money on the line.
