Questor Technology (QST.V)

They produce methane incinerators. They have no debt and good growth prospects. It is still cheap from a growth perspective. A lot of their business is originated in Colorado. He would like to see them expand into other states.

He likes the company and has met its managers. He would only buy it if they did an equity issue, and it seemed like they were going to a few times. There were opportunities in North Dakota and Texas, but there was a ban somewhere on drilling, and so the stock came off a lot. It's highly volatile, and it's too small and illiquid to own. You have to pick your spots on this stock. Environmentalist may be tailwind as they tell U.S. states that they must use QST services.

Unfortunately this company is too small to provide the liquidity they look for. The management is top-notch. Almost all their revenue comes out of Colorado and they are trying to grow into Texas. They may be at an inflection point and would continue to hold. This company should make a lot of money in the future as the incineration business to reduce flaring emissions for the oil and gas sector becomes more important.

Interesting Alberta company. Very efficient process for recovering waste heat. Their fate is tied to fate of companies in the oil sands. Really likes this technology. In 10, 20 years time, would want to see them pivot to other forms of waste.

He likes their story for helping companies reduce methane emissions due to flaring operations. He thinks it is a good holding because there is tremendous growth opportunities ahead. The problem for his is that the asset size is just too small for his liking. He likes the management team.

They have changed their model to do rentals instead of sales of incinerators. This strategy helped revenues and profitability. It is very cheap if forecasts are correct. He likes it and may pick it up again soon.

Has a very interesting technology. When drilling for oil and gas, you typically find either gas or sour gas, which is effectively sulphur. There are wells in downtown Calgary which have so much sulphur that, if it escapes, will knock over both livestock and people. Their system is extremely precise so no matter what you throw at it, it will burn it up. The competition has to add additional natural gas to try and maintain it, and if the flow rate changes, it causes all kinds of problems. Ranks 14 out of 700 stocks in his database. Earnings have turned around. In addition, they’re working on a product that will reclaim some of the heat which will reduce energy costs. He likes this stock.

We are seeing it start to turn up. It is still pretty small but the trend is there and the orders are there.

Great technology. Makes an extremely efficient incinerator for burning flared gas, in particular for getting rid of sulphur dioxide, etc. In spite of having great technology, not a lot of people are using it. Part of that relates to the declining price of oil and natural gas. With his expectation of rising oil prices, that should be beneficial for them. At the moment, earnings are expected to be $.02 against a $.75 stock price, giving a 38X PE multiple and a 4% ROE. He is waiting for an increase in overall sales volume to turn the company around.

(A Top Pick Aug 29/14. Down 61.90%.) Makes incinerators to burn off flare gas, and the industry has been very slow to take this up. In the last 3 months, a large US oil company was fined $70 million US for not properly using incinerators, and it looks like other oil companies are now looking at this company’s technology.

(Market Call Minute.) Very interesting technology, but has not yet announced the expectation of large contracts for the use of their incinerators in oil/gas. Ranks poorly in his model.