QuestCap is a long term play with real sales revenue. A trading pattern from the last two days is showing Accumulation by some larger investors. Accumulation from larger investors will become play later. Once all these short-term profit-taking investors are out, QuestCap should be able to make a run to accomplish the real valuation. All the people who wanted to sell and move on are getting a chance to sell and move on. All the believers and long-term investors will not sell at these levels. Once QuestCap has 50 plus testing sites up and running. Collection sites will be generating over $10-12 million Canadian dollars per month with a projected EBTIDA of over 55%. QuestCap stock price will correct itself.
I don't see retail buying right now. When the next wave of 25 testing centres are up and running, I can see the company starting to promote these testing centres to get more clients. That is when retail will realize and start jumping in to buy QuestCap. Also, when QuestCap starts promoting collection sites, then the daily average per site test should improve. Right now, these sites test 73 people on each site. When QuestCap starts promoting the collection sites, tests per site can move close to 150 tests per site. Alone this can double the sales revenue from the current estimates with 45x73=3285 tests per day compare to 45x125=5625 tests per day. As of now, we estimate sales revenue of 3285x95 =$312,075 per day and $9,362,259 per month. All this can improve quickly with a little advertising budget to 5625x95 =$534,375 per day and $16,031,250 per month. Keep in mind all these estimates are in USD, and converting to CAD can improve even further. Also, we are talking about only 45 testing sites, and when they add even 50 more by Christmas, that can double the sales revenue. Then add projected Ebitda margin over 55%. Now bring on any investment advisor that can justify QuestCap stock price in cents rather than dollars.
As QuestCap adds more testing centres to generate more revenue and profit. It will attract a wide range of investors, even some institutional investors. Why not? When QuestCap should be generating over $12-$20 million Canadian a month with only 45 testing centres up and running. Now add another 50-100 by Christmas and double or triple the revenue. Then add online sales from RESAAS and Los Angles sales revenue from Realtors. Now add the sales revenue from Columbia S.A and other small corporate contracts. After all, this add-in projected Ebitda margin over 55%.
QuestCap plan is to add many more testing sites. Management is talking about the 700-1000-2000 testing site by the end of March. What my point is progress, and adding extra revenue does not stop this month or next month. With all this, you can imagine the stock price will keep climbing slowly to a new high for many more months.