Though not yet profitable, I think QTWW is on it's way to being there by the end of the year, and beyond..
I really like the progress they are making towards getting back to their core expertise and dispensing with the legacy BS businesses they were involved with. And to their credit, they have already written off those investments so anything they gain from their sale SHOULD be accretive in future quarters.
The conference call transcript can be found at SeekingAlpha
seekingalpha.com
Some of the highlights are that they have double their CNG tank capacity, and currently stand at a annual production rate of 6,500 per year, which they hope to double again by year to 12,000. 2014 has a goal of 20,000, and they are apparently toying with partnerships or licensing the manufacturing rights to other parties in order to increase production and gain market share.
To reiterate, the CNG tanks make the primary cost of a CNG conversion, and a substantial part of a "ground up" vehicle, like the new Ford F-150 pickup..
autoblog.com
It was mentioned that QTWW has a stake in this through other Ford integrators, not only with the 150, but the 250 and 350.. That's a pretty large market!!
Now, I'm seeing some questioning whether QTWW will be going "to the trough" for more capital and I think that's a valid question, given it's past history with dubious fund-raising that was squandered on non-focused "investments". But I think any financing that is required to meet a concrete demand from the CNG market that will add value to the company over time.
The way I look at things, minus some "black swan" in the NG marketplace that drives the prices higher than other oil based fuel solutions, CNG is going to be a long-term trend in the transportation industry, where companies are seeking any and ALL possible methods of reducing their transportation costs. And I think this will especially apply in any economic downturn that might befall us (again)..
But I think this interview with WPRT's Director of Technology explains the potential in this interview:
fool.com
On the more speculative, and futuristic, side, all of the infrastructural costs (throughout the CNG market) lays the groundwork for the distribution of Hydrogen. QTWW's tanks were originally developed for the vehicular storage of Hydrogen fuel and it would appear there is still a market for them when, and if, we ever figure out how to produce sufficient quantities of Hydrogen to make it a viable vehicle fuel.
Therefore, I like what I'm seeing, but obviously the question is when will this company achieve profitability?? No one wants to be invested in a non-profitable company, and that includes me.
I may be early with my investment in QTWW, but I think we're on track by 2014 to be profitable.
Hawk |
