Technology’s (TSXV: QST) record-breaking financial results for 2017 are the
prelude of what is to come for the Company and its shareholders in 2018.
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.
our last blog post about Questor Technology (See: The stars are aligning
for Questor Technology and its clean-tech solutions) which is one of our long-standing Top Ideas, we put forward the
question as to whether the stock price could reclaim its all-time closing
high of $5.00 in the future and, based on Questor’s recent momentum, we
could see it happening in 2018. Given the record-breaking financial results for
2017 and outlook for this year, our stock price forecast looks more likely than
Technology Inc. (TSXV: QST - $3.23) is a leading provider of waste gas
combustion incineration 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 emission regulations. To date,
the Company's incinerators have been deployed all over the United States and Canada, as well as in many other
highlight that the Company’s revenues in 2017 were the highest ever to date at
C$19.5 million, an increase of 175% from the prior year. The bulk of the
revenue growth was a mix of high-margin incinerator rentals, up 256% to C$11.4
million in 2017, and a 97% increase in incinerator sales to $C6.5 million
during the same year. As a result of the record sales levels, Questor
reported that adjusted EBITDA jumped significantly to C$8.2 million, driving
bottom line profitability to C$0.14 per share on a fully diluted basis for the
year. Despite an aggressive capital spending budget, the Company still ended
the year with plenty of cash and debt-free.
has said that 2017 was a pivotal year which validated the Company’s strategy to
move more of its rental fleet of incinerators to the USA
(where there is enforcement of waste emission regulations for oil and gas
fields most notably in the state of Colorado)and to introduce and
implement an innovative hybrid incineration technology.The Company’s
hybrid incineration technology allows its oil and gas customers to purchase a
base level of capacity and rent additional capacity to meet the shorter-term
demands of high initial production. The benefits are lower capital and
operating costs, reduced lease footprint and clean enclosed combustion to meet
stringent emission regulations.
States in the USA are in the
process of implementing similar rules to those in Colorado to deal with emissions, with
particular focus on methane gas reduction. The Company has said that "by
utilizing Questor’s patented clean combustion technology, our clients eliminate
their methane emissions and reduce the GHG emission impact nine-fold.” In
Questor has already demonstrated that its technology cost effectively deals
with methane emissions and other hazardous air pollutants.
took a closer look at Questor’s fourth quarter results for 2017 as a barometer
of what is to come in 2018. Adjusting for a one-time charge, the Company earned
about C$0.08 per share in earnings in Q4. Given the ever- increasing demand for
Questor’s green solutions and that the Company announced that its 2018
capital budget of $10 million will be used primarily to expand its US
Operations for additional proprietary rental emission control equipment, we
think there is plenty of upside to Questor’s financial results this year. We
estimate that the Company could earn about C$0.40 per share in 2018.
our analysis and, using a conservative stock multiple (13x), we conclude that
Questor Technology’s stock price this year could hit the C$5.00 dollar mark,
which is about 55% upside from its current trading levels.
Technology has approximately 26.4 million shares outstanding.
Company’s website www.questortech.com.
Ownership 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
article is subject to change without notice, and the author assumes no
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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