TOP IDEAS: Questor Technology Inc. (TSXV: QST): Stock’s meteoritic
rise is in part due to the prudent management of growth.
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.
Eight months ago we circulated a blog post to our Investorfile members about
Questor Technology Inc. (TSXV: QST - $2.11). In that blog post we wrote that
this clean-tech small cap stock maybe only in the early stages of its value
appreciation despite that its shares had hit our price accumulation target we set
the year prior (See: Questor Technology
clean-air solutions are good for the environment and shareholders.) Since that
blog post 8 months ago, Questor’s stock value to date is up 225%.
Questor Technology is a leading provider of waste gas combustion
incinerations solution 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
Questor’s incinerator technology is receiving
worldwide attention with recent confirmed orders coming from customers
operating in Canada, France, Germany,
Russia and the US. In the Company’s most recent corporate presentation the preliminary financial outlook indicates that sales have jumped
dramatically in 2013, with cash flow and profits more than doubling from the
No doubt that the demand for Questor’s clean-air incinerations solutions
has heightened. So too is the interest in the Company and its stock from a wider
investor audience. Combined, these forces gave Questor Technology stock
its meteoritic rise.
But the underpinning for the stock’s rising share price is a result of practical
decisions made several years prior by the Company’s management. The majority of
small cap clean-tech companies are run by CEOs with dreams about the
global sales potential of their green technologies, but not how to operate
profitably. At Questor, the Company’s CEO
executed a sensible business plan to finance growth from internal cash
Three years ago, the Company was already profitable on a mere $4-$5
million in annual sales. For the last several years, Questor did not need to
raise capital thus avoiding dilutive equity financings when the Company’s stock
price was low, which today would limit Questor’s share price appreciation potential.
Fittingly, the stock is up 455% since we
first recommended the purchase of shares in Questor Technology as a small cap
value investment opportunity (See: Questor
Technology Inc: A small cap clean-tech company that makes money.)
Questor Technology has approximately 25.2 million shares outstanding. The CEO
of Questor owns 14.9% of the Company.
Questor Technology 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 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 only.