Second Quarter REVIEW by AnglesHi Everyone;
Here is just some of the major problems STILL facing this company, in my opinion, after reviewing the second quarter report.
Equipment Sales Concerns:
Questor Tech is still missing out on a lot of market share and huge opportunities in this industry, while other competitors are scooping up all this business. In the meantime, QST shareholders are slowing fading away while Audrey talks a lot of FLUFF about how QST can change and save the world. Wow, $0.6 million of new equipment orders for the whole quarter. That is not going to do it, as I have been saying forever!!!
Further, you cannot support annual administration costs of over $3 million on this tiny amount of sales. Either increase your equipment sales substantially or CUT THE FAT. And since you can’t seem to increase your sales then FIRE half your staff including yourself. Plus, cut as many other expenditures as you can. And STOP rewarding yourself with free and cheap options. I would be happy to see you get REWARD options once and if you earn and deserve them. Currently you do not! QST management and the operating team is doing a HORRIBLE overall job.
Equipment Rental Concerns:
With well over $30 million invested in the Rental Fleet, and even getting a 71% increase this quarter up to a total projected annual rental revenue of only $2.7 million, does just not cut it, again, as I have also been saying forever. Plus, we are depreciating these units at another million dollars per year. No other company renting or leasing a product works with such low overall returns. Yet, QST thinks they are doing a great job and getting a satisfactory return. I again have been saying this forever, raise prices on the rent, secure a much, much higher utilization rate along with longer term contracts in place OR sell everything off and properly deploy this capital. We have already written off over half of our invested capital in the rental fleet. I believe it exceeds $18 million wasted!!!
Research and Development Concerns:
With such low sales and rental income, along with very high minimum annual operating costs, QST cannot afford to invest over one half of one million dollars per year in research and development funding. And these are our net costs after large free money grants received. And, most of these R & D projects end up NOT reaching full commercialization, nor ever turning a profit. Let’s utilize what we have and really exploit it. Maybe we have missed that boat too as we are falling behind rapidly in our old technical expertise that Audrey proudly speaks of in her FLUFF speeches all the time.
Management Problems:
I can sum this up in one word – AUDREY. She rules one way. Her way, be it right or wrong. She does not listen. She almost does not care, or it seems. No one can apparently work with her or get along and is not allowed to give input of any new ideas. Just shut up and follow the Audrey way! Audrey, PLEASE start listening and implementing what your shareholders and analysts are saying OR quit and sell the company to someone who can run it properly and make great profits. She runs this organization like it is her own private company, which it is certainly not.
Conclusion:
As I have said forever, QST is not going to return to the old glory days and start returning any profits to shareholders, let alone seeing the stock price rise BEFORE any of the problem areas I have highlighted are addressed. One of the huge factors preventing accomplishment of these corrections is QST management and their higher percentage of ownership, namely Audrey. I keep hoping she sees the light and changes but as time and these problems continue on and grow, I have my doubts about any fix. We need change now, or we did some time ago. Is it already too late. Maybe, but I still hope and prey for changes.
These are my own opinions and facts as I know them. Good luck to all QST shareholders. We need it. Now more than ever.
Angles