Qsolar Ltd. QSLRF

RE:RE:RE:RE:RE:Canadian Insider - Mr. Tapakoudes

[mercurysmith]

I don't believe in any conspiracy theory regarding QSolar.  As a retail s/h, I have no definite knowledge, but I believe the following:

• April 2013 Q had Xie onboard, with a second factory and lots of orders for Europe.  The s/p was as high as $1.20.  By June 2013 that all crashed with the European dumping tariff on solar panels imported from China.  By July/Aug 2013 the s/p fell to the $.70-.80's range. Q had to rebrand itself with looking for markets outside of Europe (a process which they acknowledged would take 1-2 years).  They still had working capital from Xie's investment to make this happen, along with working towards the UL certification.  
• UL certification kept taking much longer than expected.  Xie grew impatient.  In May/June 2014 Xie sold massive amounts of shares, with the ultimate consequence of instantly walking the s/p down to $.40.  It never recovered from that blow.  To date Xie still has 9.6m shares.
• Former Director Gregory Nepse had 5M shares when he left Q in Feb 2014.  I think he was the initial "anonymous" selling all 5 M shares.  I think he is no longer a factor because his shares were sold by January 2015.  This is no conspiricy.  He simply wanted out.  The unfortunate consequence was the further walking down of the s/p to as low as $.09.
• Q then gets huge news of the first certification in December 2014.  However, by then Q had run out of working capital, making it difficult to take advantage of that huge news.  Q hunkered down and held on by having the CEO sell lots of his shares and then lend the money back to Q for working capital. 
• This pattern repeated itself in January 2015 with the even more important UL 1703 certification, but Q had no working capital to take advantage of that huge certification news--the biggest news they have had in years and the s/p even went down $.02.  That was because Q was still hunkered down and getting buy with the CEO selling more shares to create working capital.  
• Not even the CES in Las Vegas could turn the corner, given weeks prior the USA significantly increased all their anti-dumping tariffs on solar panels from China.  By Jan 29, 2015, CEO only had 993K shares remaining.  If it weren't for bad luck, Q would have had no luck at all.
• Bottom line is Q has a great product that is now UL certified, they are meeting their debts (primarily by hunkering down and not spending much) but they are in no position from a working capital point of view to now promote and sell their products.  They need some working capital.  They are likely looking for someone with deep pockets to be a partner, licence holder, USA manufacturer, distributor, or perhaps even someone to buy out the technology.  That would likely be some tier 1 company.  There is no conspiricy with all of this.  They have just run out of working capital given the UL certification took a year longer than they had hoped.
• Hopefully some new investor will now provide that working capital.  There is no doubt some are interested. It is always a question of price. There is no doubt that investor can now get it for a lot cheaper price now.  There is no conspiricy.  Just cold hard facts.  Hopefully Q will find a way soon to get the needed working capital to move forward. Time will tell.  Fundamentally Q has more potential now with UL certification than when the s/p was in the $.70's (other than not having the working capital), yet here we are today at $.13.  Hopefully the future will be better for Q.  They definitely deserve better when looking at this history.