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31
Questor Technology is ready to profit from greenhouse gas mandates
Posted by: Gerry Wimmer
10/31/2020
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TOP IDEAS: The push to slash methane gas emissions and the diversification of applications for its advanced clean-air technologies will drive the growth for Questor Technology (TSXV: QST) and propel the stock price once again.




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.


It goes without saying that the stock price of Questor Technology Inc. (TSXV: QST - C$1.57) has had its ups and downs like its customers in the Oil and Gas industry. Following our introductory blog post (See: Questor Technology Inc: A small cap clean-tech company that makes money), the Company’s stock soared 1,215% to a high of C$5.00 in 2014. A year later, with the first collapse of world oil prices, the stock traded down to a fraction of those highs. Then, with the return of rising oil prices, coupled with the enforcement of stricter methane emission regulations in the US, the demand for Questor’s clean-air incineration solutions heightened from Oil and Gas producers and the Company’s stock soared again: Up in value 1,374%, with a closing price as high as C$5.60 early in 2020. Then COVID-19 hit, which led to another collapse of world prices, followed by the massive spending cuts by the Oil and Gas industry and Questor’s stock price crashed down again, near to its current trading levels.

But will the stock price start its path to recovery yet again? We think so, and beginning relatively soon.

Questor Technology is focused on clean-air technologies that safely and cost-effectively improve air quality, support energy efficiency and greenhouse gas emission reductions. Questor designs, manufactures and services high-efficiency waste gas combustion systems. The Company's proprietary combustion technology is utilized in the effective management of methane, hydrogen sulphide gas, volatile organic hydrocarbons, hazardous air pollutants and BTEX (benzene, toluene, ethylbenzene and xylene) gases, ensuring sustainable development, community acceptance and regulatory compliance.

Today the Company’s clean-air technology offering of products and services has evolved to become a complete emission reducing package.

The first step is for a producer to have its waste gas collected using Questor’s patented incineration technology, "Q-Series,” which eliminates 99.99% of harmful pollutants. The Company’s incinerators is best-of-breed technology which meet or exceed all regulatory standards without emitting any smoke, odour, or visible flames for lowering emissions and satisfying current and future environmental standards.

To help verify waste gas collection for regulatory bodies while enhancing social compliance, Questor Technology offers a cloud-based product to provide continuous and real-time emissions data monitoring and analysis, called "Q-Insight." This platform provides a reporting vehicle to increases emissions transparency for producers (and their investors) and to more effectively monetize pollution reduction activities through carbon offsets and trading.

Finally, Questor Technology offers power generators "Q-Power” that turns waste heat into operational savings. The Company’s systems are designed to efficiently transform otherwise wasted high- and low-temperature heat into valuable electricity power, which can be used by producers on-site or transferred to a power grid. This technology creates an opportunity to realize "zero-emission power” by utilizing the heat generated from efficient combustion.

While Questor Technology’s continued revenue growth generation has had some bumps in the road due to oil price volatility, the Company has always managed to recover from these setbacks stronger than ever. Therefore, we think it will happen again, which is good for current investors.

While historically the bulk of Questor’s waste gas combustion systems have been deployed at oil and gas fields, its emission-reducing system can process any type of waste gas from a variety of industries, which greatly expands the market opportunity and thus investment value proposition for Questor Technology as a diversified clean-tech growth company. That said, if the Company can demonstrate that its future growth prospects are not only tied to reducing emissions in oil and gas fields, this would also serve as a significant catalyst for Questor’s stock price.

We see the early signs of progress that Questor Technology is making in diversifying its markets. As such, its first project is at a waste water treatment plant in Colorado, a biogas-conditioning system that is using Questor’s clean combustion technology to safely and cleanly handle the waste gas stream left over after the renewable natural gas is extracted from the produced waste gas stream at the water treatment plant. Also, Questor Technology recently announced it has received a purchase order from Glass WRX in South Carolina for its 200-kilowatt heat-to-power generator. The heat-to-power generator converts waste heat from Glass WRX’s production processes into enough renewable, emissions-free electric power to satisfy the majority of the plant's electrical requirements.

The biggest green mandate push is coming from the drive to slash methane gas released into the air. Questor's incinerators are capable of cleanly combusting waste gas streams at 99.99-per-cent efficiency from many sources, such as landfills, waste water treatment, oil and gas, while ensuring no harmful pollutants and methane are emitted. The Company’s products are the first environmental technology to be verified by an ANSI National Accreditation Board (ANAB) accredited verifier to the ISO 14034:2016 environmental technology verification (ETV) standard.

But most importantly there is now the realization by governing authorities that the capture of methane gases is the low-hanging fruit to achieving lower greenhouse gas emissions, given that clean technologies like Questor’s is readily and economically available today. Last week, the Canadian Government announced C$750 million of funding to oil and gas companies in Canada to slash methane emissions. In the State of New Mexico, regulators are developing what could become the strictest standards in the USA to regulate the volumes of methane released into the environment by oil and gas operators.

No doubt in the short-term Questor Technology will continue to pursue opportunities in the oil and gas industry as regulators, investors and companies focus on methane emissions and air quality.

This year, the Company’s financials will reflect the downturn in the Oil and Gas industry due to COVID-19. That said, Questor Technology’s past profitability has afforded the Company to maintain a very strong balance sheet with a sizable amount of cash holdings in the bank and no debt. Financially this positions Questor well to take advantage of the enormous opportunities for the Company which lies ahead.

For investors big and small, Questor Technology remains one of Investorfile's Top Ideas and is the most relevant technology play today for making a socially responsible investment that promotes the reduction of greenhouse gases for our environment.  

Questor Technology has approximately 27.3 million shares outstanding.

The Company’s website www.questortech.com.

Author Ownership Disclosure: TSXV: QST- YES

Read Disclaimer:


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 responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock.

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 only.

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Hi Gerry, Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that. Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.