Questor Technology (QST.V)

Has been a disappointment due to oil. Earnings estimates went up by 23% over the last 90 days. They need to get contracts over the next 12 months.

They either build or rent out gas incinerators. Got a little concerned when their last quarter was a little underwhelming. Fine company, good management and the balance sheet is pretty good, but he thinks they really need further capital injections to be able to build out their fleet of gas incinerators.

Anything related to natural gas has been beaten up here. He has a small position in this and is waiting for the quarter. If it comes out good, he will be adding to his position. They are soon going to be looking at waste heat as well. Great little technology company.

Incinerators. There is an advantage from an environmental as well as a legislative viewpoint. Earnings were up 58%, and the cash flow was up 112%. Earnings are expected to grow really well. Thinks it will do really well over the coming 12 months.

Have technology that works with gas flares. Doesn’t know where they are at in their evolution. If they are there, they are probably going to do well. Stock price has increased pretty heavily, and you have to ask yourself if the business has increased in value that much.

Basically manufactures incinerators that are used to get rid of nasty products in natural gas. When you flare natural gas, it doesn’t get hot enough to get rid of benzene and other carcinogens. The conventional incinerator uses additional natural gas and forced air to get the temperature high enough to burn off the nasties. In contrast, this company’s incinerators has the equivalent of a vortex inside the chimney, which means they don’t have to use the natural gas, so the payback is about 9 months compared to their competitors products. Also, no forced air or moving parts gives it huge reliability. Still cheap.

Thinks it is starting to look interesting and they are starting to get traction. Thinks they are close to a big growth spurt as people start to buy their products. In this industry you can grow quickly.

Chart shows the stock has moved up and then consolidated and it seems to be doing that right now. It is showing a symmetrical triangle. As long as it breaks to the upside from that, the stock looks okay.