Look out below - as far as the share price is concernedUnfortunately, as I said in my August 16, 2021 post about QST’s second quarter report …
“I think it could touch new lower lows before any recovery, not the $1.46 like I had said before”
… looks like I may be right. The stock continues to drop daily with very little rally attempts and nothing but fading volumes on the bids and in trading. It has blown through the $1.70’s, did not stop much in the $1.60’s or $1.50’s and is currently in the low $1.40’s (erasing my $1.46 forecast low) ready to hit the $1.30’s and beyond much lower. My new low stock price prediction is now $1.19. Sorry, that is where I finally see it leveling out at. I base this new low stock price prediction on the following reasons.
I have reread this report many times and feel QST is still basically on track with their ideas and plans but moving far too slow with a number of problems and faults that need to be addressed and dealt with quickly.
Here is my list of observations, problems and criticism that specifically needs action and attention NOW from QST management. I hope you are listening Audrey, Darko and others.
1. I have major problems with the way they sell, how they sell, what they concentrate on selling, what they are not concentrating on selling. And like many on this board have said before me … their competition is eating their lunch (while they only plan and put new people/systems in which don’t seem to be doing the trick), when they should be hitting home runs right NOW, like their competitors are doing presently!
2. The next big problem I have is with all their assets (at least most) tied up in a 120 rental fleet sitting idle. Or left to rust as another blogger put it. This is ridiculous! Sure, it is nice to put efforts into expansion and diversification products and programs away from the oil and gas industry. But don’t forget who brought you to the dance and what put the huge bank roll deposit into your account currently … it was the great margins and profits from the rental program. If it was my company, I would be hustling my butt off and getting these units placed anywhere and everywhere I could and bringing in revenue and some profits … not parking them in a new yard I had to spend more money on. And not forgetting about them while I dream on new products in new industries and continue to make a ton of excuses (lower oil and gas prices, customer went bankrupt, laws not happening fast enough, C-19, world economy problems or whatever else they can think of and say). This is a huge mistake. Also, if I can’t place them anywhere … then liquidate them down considerably instead of having to eventually write them down to zero. Even the price of steel scrap is up considerably but come on, lets try harder to sell and rent these units.
3. The pace at which they progress in so many areas is really starting to bother me along with the large costs associated with always time delays and excuses given. The announcement of new products/programs has been foreshadowed forever and then takes years to get started and implemented. Then we seem to go through people galore getting anywhere, always with a big price tag. No wonder those other guys left and started their own operation (not saying that was right but they must have been super frustrated working at this QST operation and pace – they knew they could do better and from what I have seen – they have). Prime examples of what I am saying are a) the data program – way to long to implement and drive any revenue or help out in other parts of the business b) the heat to power program – started in 2014 with purchase and has been flawed ever since without decent sales c) the engineering and redesign ideas – too late, by the time we redesign we are only playing catch up d) almost everything else they have stated and planned – always delayed, behind the ball and over budget.
4. By having no sales and yet adding staff, spending lots of money in five different areas without a clear path to when things will right size put us back into basically a start up company with a little bank roll. Not an established and solid organization like we should be dealing with. Again, like 2015, 2018 and 2020. Do they never learn or do they like starting over every two to three years? That is what it seems. Tell me I am wrong. I will show you I am right!
5. Here is another thing that annoys me! Management, please stop giving yourself free shares and low options UNTIL you actually EARN them by demonstrating your worth to this company and its shareholders. Do something first beyond excuses, delays and problems, like make and save the company some money and get the job done proper and on time. Then I would be happy see you reward yourself. Right now, it is only costing a ton in losses on my QST holdings.
6. If you are a company with only $1 million in sales per quarter, you must live within your means and not make promises you can’t deliver on. I really don’t think I need to explain this any further to any long time QST shareholders. But a blatant example of this was the ridiculous statement about supplying China with 5,000 of the Q5000 units in the second quarter report, when you can’t sell more than one unit per quarter. Come on. Let’s be real. This is the real reason this stock has gone from over $5 to under $1.25 and looks headed that way again. Plus, they never update their website/presentations for either customers or investors and lack decent communication to everyone.
7. Now, I agree in many of the directions QST is going. ESG is good and will pay off. Better technology with higher efficient products is great and will also pay off. Getting as many grants to pay for as much development as you can is excellent. But don’t delay waiting for those funds … move it, time and competitors are passing you by. New systems and new people only work if they have drive and get results by hustling and attaining more orders, leases and sales for the company. This attitude that the world will make a path to QST’s door is totally false. They are by far not the only company providing these products, technology and services. If they continue to wait, go slow and delay any further they are going to get passed by many others who know how to get their products out there and SOLD.
8. If Audrey did not control as much stock as she does, I would make suggestions for a control and complete management change. She is older now, in different circles and has lost the drive and passion I believe she once had for this organization. I had high hopes when Darko came in, but he seems he has not delivered on anything other than to sell the shares he bought at first. To me, that says it all and the proof in the pudding is this second quarter report. A complete dud with further delays, lack of sales and more problems. Hey, why not sell this company. There is a great list of possible buyers and we could get a nice penny for it!
9. I am not the only one saying all these things about QST. They have lost the support and ratings from all the stockbroker houses who previously followed and mainly supported the stock price in the marketplace with their recommendations. They have all been changed to SELL or HOLD at best. I don’t think QST is listening. I think they believe they (Audrey) have the best plan and that the rest of investors and shareholders should just get in line and not complain like me. Sorry, it does not work like that.
10. Believe it or not, I still feel there is great promise for QST share appreciation over time, IF they can get their act together and much faster and harder than they have, given their financial condition, the products they have and are developing, the future of their industry and the world as their market. Again, just my own opinion.
Good luck to all QST shareholders and future investors. Angles.