Questor Technology’s (TSXV: QST) share value has risen
1282% since first recommended by Investorfile and the financial results and
outlook are stronger then ever, meaning the best is still to come.
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
About 13 months ago
Investorfile said that Questor Technology’s shares will hit C$5.00 (See:
Questor Technology could be a $5.00 stock again). Today the stock price is that
Questor Technology Inc. (TSXV: QST - C$5.25) 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
now being enforced.
Over that past two years it should be no surprise that the
share price for Questor Technology continues to have momentum.
Why? The numbers tell the story.
Last year the Company had its highest yearly revenue and
earnings in history. Annual revenues were up 21% in 2018 to $23.5 million, and
earnings increased 80% to C$0.27 per share. This year the financial
results indicate even stronger growth. In Questor’s first quarter of 2019,
revenue grew by 29% to $7.7 million, compared with the same period from 2018,
while earnings per share jumped to C$0.09. The Company continues to have plenty
of cash on its balance sheet and no debt.
What was behind the numbers in 2018 was the success of the
Company’s strategy to establish a dominant presence in the State of Colorado with its rental
fleet of incinerators, where there is enforcement of waste emission regulations
for oil and gas producers. In 2019, Questor Technology has replicated this
strategy in the State of North Dakota.
To date, revenue growth this year is largely the result of Questor
securing long-term contracts for the use of its incinerators from oil and gas
producers in the State of North
Dakota who need to comply with the enforcement of
waste emission regulations. The Company has said that North Dakota enforces
emissions regulations in such a way that allows oil and gas companies which
utilize Questor incinerators to be credited with an extremely high destruction
efficiency, reducing the oil field’s emissions below the limit and hence,
allowing higher oil production. This is a win-win situation which has created
significant business opportunity for Questor Technology.
The Company continues to pursue other expansion
opportunities in the USA
with its initial entry into the States of Texas, Wyoming
and New Mexico.
In these markets, waste emission regulation for oil and gas fields is beginning
to be enforced. To meet the expected demand for its incinerators, Questor is
spending between C$7-10 million this year to expand its rental fleet, all of
which can be funded from the Company’s existing cash holdings and cash flow.
Of note, C$1.8 million of revenues reported in the Company’s
first quarter were the result of a purchase order to supply its clean
combustion incineration technology with its power generation equipment at three
oil and gas production facilities in Mexico, comprising a total project
award amount of C$5.8-million. This order showcased the Company’s technologies
as a method to eliminate gas flaring and methane for the oil and gas sector
outside of the USA and Canada. Questor
has targeted methane gas reduction as part of its environmental objectives to
reduce emissions by up to 75% by 2025. Hence, the Company is ambitious with its
expectations for new business in Mexico, given the country’s
aggressive objectives to address climate change within its mature oil and gas
have highlighted the many growth opportunities for Questor Technology which has
helped propel the share price up an astounding 1,282% since the Investorfile
blog first recommended the stock (See: Questor
Technology Inc: A small cap clean-tech company that makes money) as one of its Top Ideas. But do not let the tremendous appreciation in share value fool you in thinking
the best is over. Quite frankly the best is still to come.
we are of the opinion that Questor’s valuation metrics are poised for major
re-rating and therefore could trade at least 20-times earnings going forward as
the Company continues to execute on its growth plans. Therefore, based on the
analysts' consensus forecast of C$0.43 and C$0.52 earnings-per-share (EPS) for
2019 and 2020 respectively, the stock could trade as high C$10.40 next year,
which is almost, double its current trading price.
forecasts become reality, we will need to compose another blog post next year
on Questor Technology when the stock price surpasses the C$10 mark!
Questor Technology has approximately 27.1 million shares
The Company’s website www.questortech.com
Author 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
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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