TOP IDEAS: Questor
Technology (TSXV: QST) stock value to date is up 614%, supported by a diversity
of clean-tech solutions and financial results that keep on building.
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.
Early in 2014 the
Investorfile blog went on record stating that Questor Technology Inc. (TSXV-
QST $2.71) has blue-sky potential (See: Questor Technology has blue-sky
potential and so does the stock price). In retrospect we still feel the same
and the Company (and its stock price) is proving its investment potential.
is a leading provider of waste gas combustion incinerations solutions to
improve air quality. The Company's proprietary incinerator technology, which is
safe, reliable and very efficient, is deemed a best-of-breed clean-air solution
for oil and gas producers needing to comply with stricter EPA emission
regulations in the US and new zero-flaring regulations internationally. To date
the Company's incinerators have been deployed in 11 US States, Canada, Russia, Germany,
and several other countries worldwide.
The demand for
Questor's clean-air incinerations solutions has heightened and with that,
interest in its stock from investors has also increased sharply over the past
year. But the Company's long-term investment potential is supported by its
financial results, which continue to exhibit substantial year-over-year growth
in both revenues and profits. Last reported for the nine months ended in 2014,
revenues were up 56% to $10.8 million with earnings up 68% from the prior year
to $3.1 million or about $0.12 per share.
In 2014, Questor's
business model shifted to a greater focus on incinerator rentals than sales
which, in the short-term, impacts sales growth. But over the longer term,
rentals contribute more to overall revenues and profitability. The Company has
said that they have seen a strong demand for rental of their large incinerators
in the second half of 2014 and into 2015. Therefore Questor expects that rental
revenues generated in fourth quarter of 2014 will be noticeably higher.
According to the
Company's CEO, Audrey Mascarenhas, demand for Questor's products are not
closely tied to oil prices but are driven by environmental regulations and
increasing focus by its oil and gas customers to reduce operating costs (See:
Interview with CEO - http://www.bnn.ca/Video/player.aspx?vid=532264).That
said, the current low oil price environment provides a catalyst to
commercialize the Company’s new product solutions: Questor's ClearPower waste
heat to a power generation process which reduces costs for oil and gas
producers. The ClearPower units are expected to be sold or rented on a
stand-alone basis as well as packaged with the Company's incinerators.
Questor also says it
has responded to a large industry demand for water management both in Canada and the US. The water management solution
utilizes the waste heat from Questor's combustion technology to reduce water
waste volumes at oil and gas well sites by over 95%. The Company expects that
sales for waste heat to power and waste heat to reduce waste water applications
will commence later in 2015.
Despite that the
stock is up 614% since we first recommended the purchase of shares in Questor
Technology as a small cap value investment opportunity then trading at $0.38
per share (See: Questor Technology Inc: A small cap clean-tech company that
makes money), the Company is still positioned for long-term growth and
profitability. Therefore in our opinion the stock price still has a lot more
room to grow.
has approximately 25.4 million shares outstanding.
Disclosure: TSXV: QST- YES
This article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
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Investorfile.com is not engaged in an investor relations agreement with Questor
Technology Inc. nor has it received any compensation from Questor Technology
Inc. for the preparation or distribution of this article.
The author of this article has acquired and may trade shares of Questor
Technology Inc. through open market transactions and for investment purposes