LQMT, Liquid Metals, is worth some research.

Here are some positive snips:

Featured in Fortune Magazine, December 8.
One of the best 25 products of the year.

Business Week, December 15.
One the best products of the year.

Revenues for the second quarter increased 199%
to $6.4 million from revenues of $2.1 million
for the second quarter of 2002.

On a sequential quarterly basis, revenues
were slightly below the $6.6 million generated
in the first quarter of 2003, while roughly
in line with management's previously announced
revenue outlook for the quarter. Revenues for
the first six months of 2003 were 260% higher,
at $13.0 million versus $3.6 million

company wide headcount has been reduced by
approximately 43%

unprofitable parts that disproportionately
consume plant resources and impact costs are
being eliminated

manufacturing and administrative facilities
have been consolidated

new pricing and manufacturing feasibility
thresholds have been instituted to optimize
product development efforts and personnel
utilization.

in early July it was awarded the first of
two contracts under a previously announced
$5.25 million 2003 Defense Appropriations
allocation for the continued development of
Liquidmetal alloy-based products and materials
for defense-related applications. The second
contract is expected to be awarded by early
August.

Negatives:

Including discontinued operations, the company
posted a second quarter net loss of $6.3
million, or $0.15 per share, compared to a net
loss of $3.2 million, or $0.09 per share, for
the second quarter of 2002. Net loss including
discontinued operations for the six months was
$12.1 million, or $0.29 per share, versus a
loss of $8.3 million, or $0.23 per share, for
the first six months of 2002.

As a result of cost reduction measures, the
company incurred approximately $0.8 million in
severance, fixed asset write-down, and
facility consolidation expenses during the
second quarter. Cost of goods sold for the
quarter included approximately $1.3 million
associated with production of certain
unprofitable parts that have now been
discontinued and $0.8 million for a part that
is being phased out of production. In
aggregate, these amounts equaled $2.9 million.

Liquid Metal clearly has excellent revenue
and clearly a great increase in revenue over
last year. This I like.

What I don't like is LQMT made a few bad
decisions on what products to produce and
sell. Because of those decisions, they have
excess inventory and a loss.

Another negative point is over-expansion
and too many employees. They are working
on this which, in itself, contributed to
their losses in the form of severance pay
and costs of actual physical downsizing.

Overall, not too bad of a corporate picture.
Revenues are very good. Downsizing is now
finished and those losses will not appear
on the next 10Q.

Losses for bad product choices are written
off and will not appear on the next 10Q.

Two products taunted as best product of
the year by well known magazines. Another
related to this, baseball bats.

For trivia, related to their military
contracts, LQMT is actually making tank
buster "rods" for aircraft guns. Over the
years, our military has used depleted
uranium rods for this, an obvious biohazard.

LQMT has a good market niche on this. They
are also developing other types of "bullets"
for the military, which can be poured into
molds like plastic but are stronger than
titanium. Manufacture costs are low requiring
no machining and their product is less costly
than lead or uranium rod bullets.

LQMT usually ranges from 2.46 to 2.50 but
closed at 2.36 on Friday, a bad day for
all stock prices. We have had no luck at
getting in below 2.40 recently.

A good buy range is 2.40 to 2.45 within
the next two to three weeks, excluding
Christmas week. Might be some good prices
next week, however. Who knows?

Our target sell price will be 3.50 per
share, hopefully by the middle of summer.

A lot of useful information is here: www.liquidmetal.com/news/dsp.press.asp

Research well, make prudent decisions
and remind yourself you could lose money.

Just picked up another 1,000 shares at 2.33

Headtraders have been trying to pull
2.34 to 2.36 out of it. A lot of people
bought at 2.00 to 2.10 a few weeks back.
Looks like some low end profit taking
right now, keeping prices down from
the support level of 2.40 to 2.45.

Be cautious. Make careful decisions.
You could lose money.