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Microcap & Penny Stocks : Quantum Fuel Sys (NAS.GM: QTWW)
QTWW 0.08010.0%Apr 8 5:00 PM EST
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To: Sdgla who wrote (234)2/19/2015 2:42:00 AM
From: Hawkmoon   of 271
 
Could be someone buys them on the cheap ?
This is only a guess.. But in trying to figure out the "calculus" as to why the shares were priced below market, it could be that Quantum management only agreed so long as the investors were in for the long haul and they were given the price as an incentive to not flip their shares..

Which, if this is the case, means that the shares were not sold to existing shortsellers as some kind of deal to bail them out in the face of the improving revenue numbers.

I know I wouldn't feel inclined to sell them to the shorts, if I had the decision to make.. Let them buy back at market price..

And why does the company need this much money? Because 50% revenue growth means expanding manufacturing and that takes capital.

Here's one more tidbit I picked up on the WPRT Yahoo message board.. Apparently the US Senate is advancing a bill that would permit LNG to be taxed like any other liquid fuel, by BTU equivalent. Currently LNG is taxed at a rate that is 70% higher than diesel..

They mention LNG, but I would have to believe it also applies in some way to CNG.

This will have major impacts on using NG as a fuel source in competition with Gasoline and Diesel.

ngv.com

There is also a measure for including a $20-40K tax credit for heavy duty vehicles to use alternative fuels..

Boom!!! That pretty much pays for the CNG storage tanks and any conversion related costs for Big Rigs to use CNG..

ngv.com

Furthermore, It would appear that Agility and Hexagon, who formed their JV to build CNG tank and storage systems, ending the partnership that Quantum had with Agility, have NOT YET even commenced building their JV tank manufacturing plant.

fleetsandfuels.com

Are they still dependent upon Quantum to meet demands from their customers until that plant gets up and running? Would be interesting to know that..

Hawk
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