The next time you look at your big screen television, take a closer look. Is it plastic that encases the screen or is it something else? Try the same for your cell phone. Materials science is always on the move, manipulating molecules and whatnot to come up with a stronger and lighter product. Most likely, you don’t pay them a second thought. It seems the products you use every day are increasingly not what they appear to be. Finding products that are used, but not paid attention to, are an opportunity for profit. The problem is, they need to be recognized in the first place. The companies that turn out these products fall into this category as well, but if they can be found, profit will follow.
Liquidmetal Technologies, Inc., an engineered materials manufacturer and marketer, works to manufacture market and commercialize liquid amorphous metal products. In a general sense, the company manufacturers materials and products that resemble thermoplastic materials and products for consumer and industrial manufacturing/production applications. It should be noted that the company’s products are not thermoplastic in any form but might be better described as looking like a thermoplastic casing.
The company has been having solid results, selling its casing and coating products to manufacturers and industrial producers. The consumer market is quickly taking advantage of the benefits that amorphous metals have to offer. Uses do and can include: cell phone cases, medical devise cases, hinge applications, aerospace applications and sports products, to mention but a few. The oil services and power generation markets are also finding excellent opportunities where their pipe casings are concerned. As one might suspect, the company is at the leading edge of this new materials science and holds many patents. To date, it holds or controls 20 patents, with three recently received patents involving its die-casting processes being granted.
Although the company has been having solid results with its product offerings, it has had several recent quarters of slower growth. For the most part, the company attributes this slower than expected quarterly growth to its moving of manufacturing operations to China from Korea, a slowing oil services sector – and maintenance programs during slower production months at electric utility generation plants. In each case, however, the company indicates no long-term effects should be seen as margins will increase significantly as China operations ramp, electric power plants come back on line and oil services stabilizes in a fairly interesting energy market.
Generally, the company does feel positive about this slower period, as cost-cutting activities will diminish any negative results. As consumer products do appear to be the strong suit of the company, the future does look positive as manufacturers begin to fully understand the true advantages that amorphous metals bring to their products. If an investor can get past the “next quarter” syndrome, amorphous metals may just be a solid investment in the future.
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