I've been holding a tiny speculative position in QDRX for about a year now. 3000@1 1/4. There's no way in hell I'd chance more than that on a company with a "...pioneering new product that will change the way we think about golf shafts!". Most start-up companies with these "revolutionary" products fizzle and file Ch. 11. But, I trade for a living and have a healthy tolerance for risk. 3000 shares at $1.25 is pocket change -- you know it, and I know it. But if Quadrex were to succeed, those 3000 shares could be worth a great deal for a stock priced at $30 bucks in 2 years or so. If I lose the investment, my portfolio won't feel even a ripple, right? I don't understand the gloom and doom atmosphere on this thread -- I've been reading for awhile and it surprises me. I have to wonder if many of you have dropped a decent % of your portfolios on this play?
I bought this company because of the thermoplastic composites. I noticed that the company was transitioning from the aerospace market and applying this technology to consumer products. I was aware of other such hugely successful ventures -- remember velcro on sneakers? How about teflon on our kitchenware? Thermoplastic composites are proven to have significant advantages over alternative materials currently in use. We all know this, otherwise no one would have invested in Quadrex. Only this year has the company finally phased out all income sources from aerospace/defence materials and replaced it with the sporting goods segment of the market it is now focused on. It is difficult for a company to introduce a new component and convince a whole market to adopt it as the new standard. Think back to the time before graphite shafts in golf. How about the wooden tennis rackets before graphite and fiberglass? These changes took time, but once the advantages were seen in action, by actual atheletes whoopin other atheletes' butts because of advantages in equipment, the industries took notice. Once the pros take notice, the fans take notice -- and the $$$ start to roll in through licensing and royalties, aside from product sales.
I live in Daytona Beach, Florida. As you can probably guess, golf is hugely popular here. In fact, the best course in town is part of my backyard. I live in a gated community called Pelican Bay which is home to many affluent retirees and businessmen, as well as many of the town's business owners and their families. There is a beautiful canal system that runs throughout the community, providing the backdrop for a very nice golf course. To play on the course you must be member to the community's club, which means a $10,000 deposit for a license that is not refundable -- only transferrable to another individual who may then pay Pelican Bay the $10G so you can get your deposit back. My point is: the people here take golf very seriously -- even religiously. I don't play golf myself, but I know the people. Sometimes pros even come to drive balls on our green. Certainly the amateur players. I stopped by a few local businesses who carry Quadrex shafts and asked the owner about the product demand, and customer reaction. She said that she's been increasing inventory on the shafts because lately there have been increasing inquiries about the items as customers become aware of the product and its advantages. Apparently, until only a few months ago, most of the golfers around town weren't aware of Quadrex and its thermoplastic shafts. After all, there aren't any infomercials or billboards anywhere. But, some have been finally reading about the products in Golf mags and after some tried them out, word has been spreading. Now Quadrex shafts are becoming ever more popular. They are being considered the new "hot item"...like graphite when it was first introduced. This particular store has pros who are regulars and they also have been ordering the shafts! The serious players like customizing their clubs, and Quadrex shafts are becoming a part of that process. The older folks love the light weight. The performance oriented players love the accuracy. If there was one complaint, the lady said, it was only that the price is higher than graphite. But as time goes by, this should change...higher volume will cut costs and boost margins for Quadrex -- allowing for price cuts to benefit the customers. Quadrex shafts are known in Florida, and are growing in popularity as the fans follow the trends of the pros.
It's only been 1.5 years since sporting goods comprised the bulk of Quadrex sales. The company has made excellent progress in a short period of time to transition from defense/aerospace to sporting goods. Quadrex needs time...I wouldn't average down or increase positions until profitability is reached, at the earliest. The shares are so cheap that you can pick up 1000s for a few hundred bucks! Just sit on them. When a company with a revolutionary product hits gold, it moves fast! You don't need more than a few thousand shares to profit in a big way once thermoplastic composite catches on. Quadrex is doing great...you can't look at the company through a microscope expecting to strike gold when the results on any such pioneering effort are best measured in years. Relax. :)
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