Valuation?Thanks to the previous poster for the note from the Nov 21 presentation.
Questor has done a great job achieving a significant market value over the past year given its results. I believe it's well ahead of itself and the past quarter (q3) was likely the last best quarter for some time to come.
We have not heard of any announcement on the sale of equipment (as we did with the $4M order that was largely recognized in q2 and q3). This means there have been no material sales otherwise they would have been announced. As the previous poster noted, full rental revenue capacity is at $12.5M with a ~45% margin. One would expect rental revenue to be the bulk of the revenue in fiscal 2018. Let's assume $12M rental revenue at 45% which yields a contribution of $5.4M. With overhead running at $4M+ per year, this results in $1.4M before tax, or about $1M after tax. This assumes full utilization of the current rental fleet. There may also be some revenue from services but this has historically been small. Also, remember options were recently issue which will impact (albeit non-cash) the bottom line and there was a note in the q3 financial statements that management bonuses had kicked at the end of q3 and they would affect q4 2017 results.
Questor does have some intellectual property but it is also in a competitive field and has little financial resources to defend any IP challenges. With high USA customer concentration and revenue concentrated from a few customers, the business could be influenced by a "buy American" bias.
Based on the current market cap of $75M (and dilution per share pending from in-the-money options), a 75x earnings multiple from rental revenue seems well out of line with any other oil field services business, even with the GHG spin. Based on financial fundamentals I can't see this business, with the current optics provided by management, being worth more that 1/3 its current trading price unless they are a strategic acquisition target.