TOP IDEAS: Questor Technology Inc. (TSXV: QST) expects substantial sales growth emerging in 2013. Stock price moves up 72% - Investorfile target reached.
Note: Investorfile’s share price accumulation target of $0.65 for Questor Technology Inc. was reached on June 3, 2013. For the record, we do not revise share price targets for our Top Ideas – Small Cap Value Stocks. We have positioned our blog to be one of the first providers for a pragmatic perspective of a small cap company stock’s potential worth, where there may be uncovered value that has been largely overlooked by the investment community.
Questor Technology Inc. (TSXV: QST - $0.65) is an extraordinary clean-tech small cap company. Unlike most clean-tech small caps, this Company makes money. Soon, they may make a lot more money. From our reading of the Questor Technology Management Discussion and Analysis (MD &A) filed last week, the outlook for this Company looks very positive. Not just in the future but here and now in Q2, when revenues are expected to soar to higher levels.
Questor Technology manufactures high-efficiency waste gas incinerators for sale or for use on a rental basis. The marketplace recognizes the Company’s proprietary clean air incinerator technology, which destroys noxious or toxic hydrocarbon gases as best-in-class, no more so than from the oil and gas industry where it reduces operating costs for customers while ensuring regulatory compliance, environmental protection and gaining the public’s confidence.
The Company says the demand for its clean-air products and services in the USA are expected to be strong driven by the heightened crude oil and natural gas development activity and introduction of demanding environmental regulations. The USA market is fuelling second quarter sales activity and Management says it is in active discussions with several companies in the USA and Canada for additional orders for the delivery of products in the third and fourth quarters of 2013.
But the USA is not the only growth market. Regulation in Europe is becoming increasingly focused on emissions. Many oil-producing countries in Europe have begun to disallow open flaring at oil fields, thereby creating additional sales opportunities for Questor’s waste gas incinerators. As such, the Company has moved forward on several joint venture arrangements for the construction of Questor products in Europe and to serve Russian and Middle East markets.
When we first introduced Questor Technology to Investorfile blog readers (one year ago) as one of our Top Ideas – (See: Questor Technology Inc: A small cap clean-tech company that makes money) we were impressed by how the Company’s management demonstrated a disciplined approach to its cost structure to produce profits and build a strong balance sheet. While both of these attributes remain intact, we are now more than ever intrigued by Questor Technology’s growth story.
For Questor shareholders it has already been a good ride. The stock is up 72% since we first recommended the purchase of shares in Questor Technology as a small cap value investment opportunity in June of last year. Then the stock was trading for under $0.40. But something tells us we are still in the early stages of stock price appreciation.
For the first quarter of 2013, Questor Technology reported about $0.02 per share in earnings. The Company is debt-free with $4.8 million in cash on the balance sheet.
Questor Technology has approximately 25 million shares outstanding.
Questor Technology website www.questortech.com
Author Ownership Disclosure: TSXV: QST- YES
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