It could prove to be a critical week for QTWW.. WPRT is set to release earnings on the 30th, and give guidance on their ISX 12G engines. And for every engine sold, it will require CNG (or LNG) storage tanks. I suspect the recent $9.3 million order QTWW received may have been from WPRT (but not sure).
Kevin Douglas, the mysterious big-time investor who ponied up $10 million for QTWW a few months ago has been one of the biggest investors in WPRT. So if WPRT does report good progress, it may be an indicator that he also saw QTWW as another means of investing in CNG.
fool.com
Btw, some "investment analysis" firm, Northland Capital put out, what I opine, to be a BS price target of $1.50 for QTWW. This is just pure manipulation, IMO. That price would be far lower than what Mr. Douglas paid for his stake in QTWW, which means they calling him an idiot for paying so much.
Will there be consolidation on this parabolic move? Certainly, at some point. But we should also recognize that this company, over the past several years, has seen NEGATIVE "parabolic" moves (down gaps) which have yet to be closed to the upside. So, given the recent, and very positive, fundamental changes in QTWW's operational focus and balance sheet, and the expected orders to be announced from both GM, and suppliers to Ford's F150/250 CNG programs, the recent move may be representative of a "lashback" from previous down gaps.
The most serious down gap was from $35 to $20/share and that still has yet to be filled. That down gap occurred within ONE MONTH back in Feb, 2011. So who's to say we couldn't see the same gap filled within the space of a few months, especially given RECORD ORDERS for QTWW products and services?
I had never heard of Kevin Douglas before his investment in QTWW. But this guy has a reputation of being incredibly savvy, and when he buys, he keeps on buying to support his investment. He made incredible money in WPRT, as well as Hansen (now Monster).. He bailed out IMAX and has been raking in cash from that investment as well.
So ignore that trash talkers, IMO. QTWW was justly punished for the ineptitude of it's previous management and it's stupid decisions. But the current CEO is showing us that he recognizes the future of the company is in CNG (as I've ALWAYS stated since I started following them).
Normally I would be very uncomfortable with such a hyper-parabolic move in a stock and would be seeking to take profits. But I think there is still more upside to come over the next year. GM's CEO stating that he personally was pushing the bi-fuel CNG Impala, and that QTWW would be the Tier 1 Supplier, hasn't even been officially announced. I suspect that will be a hot topic on the next CC, as well as Ford's F-150/250.
15 million vehicles, worldwide, run on CNG, most using Type 1 or 2 tanks. While reasonably safe, I don't think those lower rated tanks are going to fly in the US markets. They will be wanting Type 3 and 4 tanks, which is where QTWW's sweet spot lies.
The problem is how fast can QTWW ramp up production? They are discussing ramping up to 25,000 tanks per year in 2014, but I think that is going to pose a problem (a good one) for companies like GM and Ford. Therefore, I think there will be pressure to either license out the tank production (royalty money), or to dramatically build out their production facilities to accommodate dramatic growth in coming years. Their current "bottleneck" to mass production of CNG bi-fuel cars will be CNG tank availability, and they will not permit that to inhibit their ability to sell these cars should public demand prove as great as I think it will (I want one).
The CNG vehicle trend is JUST starting to take off in the US. Companies need to reduce their fuel costs to add to their profit margins and increase their available discretionary income. Households want the same capability. Commute on CNG, and travel longer distances on bi-fuel. It's a no-brainer in my opinion and one that is LONG overdue.
The next major step will be home refueling of CNG cars and GE and other companies are looking at cheaper fueling stations for garage/home use. It's the same concept as PHEVs.
This is just my opinion, but I would like to think I can see the vision that is finally manifesting itself before our eyes.
Hawk |
