A good part of my analysis of QTWW's prospects in the CNG market are based upon what we're seeing industry wide in the wake of the NG "Fracking" revolution.
And it seems like more and more oil companies are envisioning and researching NG and even Hyrdrogen..
Motley Fool issued this article highlighting the transition that appears to be underway.. And it's a long term trend, from all appearances.
fool.com
"By 2070, the passenger road market could be nearly oil-free"
It seems like a pretty bold statement, and one that seems to be endorsing the very technology that could threaten the company's profitability. If you sift through the details, though, you notice that Shell lumps electric and hydrogen into the same group. Also, It just happens to be that that both Shell and Total (NYSE: TOT ) are currently the only two of the integrated major oil companies that have stated in their annual reports that they are actively developing hydrogen based fueling technology for vehicles. So, on the surface it may sound like a dig at its own industry, but it may just be a pitch for what it is developing down the road.
Hydrogen vehicle fuel storage is where QTWW started it's Gaseous tank storage, with designs that could hold up to 10K PSI.. It's important to recognize that, quite possibly, NG will prove to be a transitional fuel that evolves into Hydrogen.. And NG will create the infrastructure that can be readily transitioned for use with Hydrogen.
Even though Shell may have not intended to endorse a company like Tesla or natural gas designer Westport Innovations (NASDAQ: WPRT ) with this report, seeing estimates that electric and natural gas vehicles could play such a large role in the future of transportation is bound to create some excitement among investors. When you consider total vehicle sales hovered around 80 million last year, the market potential for these companies is immense.
QTWW just did a $9.3 million contract, which probably equates to 1500-2000 storage tanks based upon a $4-5K per tank price. And that's probably for "big rig" CNG tanks, not for light to medium vehicles. So think about the potential for this company, where CNG tanks make up nearly 50% of the total cost of the CNG conversion and power package.
It's where I always thought that QTWW should focus it's energy.. And finally it appears that the stars are aligning for CNG. So when people look at the existing market cap for the company, and the potential rate of growth in coming years, they need to look at the over all market..
I think this run is just starting. And I have little doubt that we're going to see another 100% appreciation by the end of 2014, if not even sooner. We could see this thing launch up to $23/share should more major news hit.
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