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Oops, meant to write Price/Revenue not P/E.
Because looking at P/E alone is putting a blinder over other aspects of the company which are not great:
The good:
Company is putting money into R&D (2019 increase of $1.5 million over 2018) and has come up with some new IP in the last 12 months in the IOT and AI fields.
Liabilities are decreasing, down from 37.8 million end of 2018 to 32.6 million end of 2019.
Operating expenses are decreasing (not taking into account R&D)
EPS is getting better (-1.37 in 2019 vs -2.20 in 2018)
The company doesn’t need money at the moment, so no near-term dilution expected
The valuation is low compared to its peers:
• Taking REKR as an example: REKR has a -0.47 EPS in 2019 but 5x as many OS vs OMQS, it’s EPS would be 100% lower than OMQS if the share counts were the same. REKR has much lower revenues & wider operating loss, and financially is not well. OMQS has ¼ of its market cap - OMQS should be at least 4x the current price.
The bad:
New tech does not seem to have gained much traction in the market
Company is still listed on OTC. Having a Nasdaq listing would help immensely with awareness and share price.
Total revenue in 2019 passed 2018 by a small margin, however, there was consecutive quarterly revenue decline from Q1 through to Q4 of 2019 ($18.62 million Q1 vs $11.35 miilion Q4).
Despite revenue dropping in every quarter, cost of revenue and total operating expenses remain high; gross profit and net income have been dropping the whole year. While some of the increase in expenses is due to R&D, sales must ramp up and the gross profit margin needs to be higher. Management has been promising they have been focusing on improving the profit margin for years now.
Due to year after year of sustained income losses, retained earnings are now at -45 million.
It has been 1.5 years since Quest acquired HTS and the benefits have not translated to their balance sheet. IF management can increase revenues while continuing to lower expenses, and improve on their profit margin, the company can inch back towards profitability. Once that happens, stabilizing their financials will come easier. I have been holding shares of this company for years, and like you still hold hope. OMQS’ portfolio of IOT and AI products is impressive - they have what it takes to make progress!
GOVX price action makes for a sweet 5 day chart, going up soon
I wouldn't say blockbuster, regarding vaccine what we have is in the recent news from GOVX.
Trials are just starting on animals. Regulatory and testing process could go quickly if it's done in China.
However, this company seems to be working seriously on several vaccine candidates using their platform and if they can get funding from US govt (which they very likely will) GOVX will rocket upwards.
The conference is done, GeoVax presented. They also released an update on their vaccine development program for COVID-19 right after.
Looking at the daily chart, QUES looks primed for another run up!
Wonder what's taking so long for the report
Was hoping it would be the 18th... probably coming out either today or tomorrow.
Their report last year was also late, and the nt 10-k on the 3rd said it would come out within 15 days of the prescribed due date, so I'm thinking think it will be released around the 18th
Looking good this morning :)
Based on past history, April 18th is when they've released the annual report, should be coming soon
The company reduced their workforce by 30%, which should greatly reduce operating expenses on the balance sheet. There may be other changes they made to their organizational structure which reduce operating costs even more, but at this point we don't know.
In today's late filing QUES also mentioned 'significant reduction in the company’s net loss', so the full year will probably have a slight net loss, however what will be interesting is to see how close they come to a profit, and whether sales were impacted at all from these changes. If they reduced operating losses while maintaining/increasing sales, the savings from interest payments made in the future (along with whatever new developments arise) may soon lead QUES to profitability!
Interesting note by QUES on the reason for their notification of a late 2017 annual report filing:
(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof ?
Yes [X] No [ ]
If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.
The company expects to report a significant reduction in the company’s net loss as a result of cost reductions and an increase in operational efficiency.
If they have any updates, hopefully we will see something in the upcoming quarterly report (last year it was released mid April)
Agreed. Based alone on the debt reduction and improvement in cash flow and operational efficiency, as well as their stated targeting of higher margin services, I think we should see 1.00 by the end of the year. The real problem was the company's low margin, along with interest payments on debt, that kept it from being profitable.
Any additional service that sets them aside from the competition is icing on the cake IMO.
New management has definitely done a good job in the past year.
As the new CEO said, they inherited an 'essentially broken business including a very weak balance sheet and an operation that generated losses'. By negotiating a refinancing of the debt, they've likely gone from having a negative value in their shareholders' equity to a positive, and by extension the debt/equity ratio to a positive. With operational efficiencies and cash flow improving from here on, I can't see why share price shouldn't continue to appreciate. Hopefully there is some exciting news soon regarding these new products they are working on.
Looking forward to the Q1 report from 2018! :)
Equity incentive plan for employees* not just executives :D
Looks like it will hit the 400k+ mark again today. Management seems to have also created further incentive for the company and shareholders to do well with their recent equity incentive plan for executives, and their debtholders have shown good faith in exchanging QUES' debt for a much smaller value of equity.
Also, as mentioned by QUES' CEO in the recent econotimes article, there may be some exciting new products coming out of their business segment soon (see below):
https://www.econotimes.com/Quest-Solution-Announces-15-Million-in-Debt-Reduction-Achieves-Pivotal-Turnaround-Milestones-1196628
This is a quote from the article:
(Among the key priorities that we set forth and have taken meaningful steps toward accomplishing are:
Delivering sustained profitability by realizing efficiencies;
Improving performance by changing company culture, motivating employees and consolidating operations; and
Adding new advanced technologies to our product offering, positioning Quest as a high-tech company with unique solutions, generating higher margins and stronger market position.
“Our business segment is exciting and includes potential integration of Artificial Intelligence Systems to revolutionize the supply chain and logistics management tasks. We are currently working on adding new technologies that will differentiate Quest from its competitors providing unique advanced solutions, increasing our margins and accelerating our growth.”)
I noticed that Stockcharts.com had removed QUES from its listing a while back, they have nice features for technical analysis. If anyone wants to see it back there go to their website (Symbol request form) to request it to be reloaded into their database:
Stockcharts symbol request form
This is what they mentioned when I emailed them: Individual requests for adding symbols are prioritized according to demand and, availability from our data vendor. Therefore, the more people that request it, the likelier it is to be reposted.
Looks like something is brewing behind the scenes. Or maybe the recent news has made its way to some new investors. Whatever the case, this is interesting :)
Wow, lots of volume this morning!
Anything interesting reported in the conference call? Didn't have a chance to listen in.
Thanks! And thanks mods for posting it, looks great. A bit of formatting got changed but we can always fix it later.
One thing I noticed that is different today is the previous investor presentation link (updated May 2015):
http://www.questsolution.com/files/QUES-Deck-LD-Micro-May-2015-ver-5-UPDATED.pdf)
no longer exists, the new link:
http://www.questsolution.com/pdfs/QUES-Summary-Info.pdf)
is missing the ViascanQData merger information (pretty sure it was there earlier but I can't recall) and also missing the slide about NCR's technology. Could be that they are updating it and put the old presentation back in for the meantime. I guess we'll find out soon!
I've put together something to use as the board summary page (some material is borrowed from some other posters' content, good stuff guys); to the mods, please feel free to edit and transfer it as you see fit. Thanks!
COMPANY DESCRIPTION
www.questsolution.com
Quest Solution, Inc. engages in the technology, software, and mobile data collection systems business primarily in the United States. The company operates as a mobility systems integrator with a focus on design, delivery, deployment, and support of integrated mobile solutions. It offers solutions that include hardware, software, communications and full lifecycle management services. The company’s hardware products comprise mobile computers, scanners, tablets, scanners for Apple products, RFID products, wireless infrastructure products, printers, and iPod sleds. It also provides various software products in the areas of order entry, proof of delivery, route accounting, field mobility, transportation and logistics, warehouse management, supply chain manufacturing, retail, and RFID. The company offers services, such as planning and assessment, analysis and design, mobility implementation, and management and support services. It provides vertical application and mobile device management solutions from its software partners. The company offers packaged and configurable software.
MERGERS and STRATEGIC GROWTH:
QUES has undergone SIGNIFICANT expansion in recent months, by acquiring BCS Solutions and ViascanQData:
ViascanQData:
http://www.viascanqdata.com/
Quest Solution Enters LOI to Merge with Canadian Company, ViascanQData
Merger Provides Quest Solution Full North America Coverage, Increased Market Share and Significantly Expanded Label Business
ViascanQData currently serves in excess of 4,000 enterprise customers, mainly in Canada. Unaudited financials indicate annual revenues of about CDN$28 million (approximately $24 million USD), and ViascanQData is currently on track to deliver unaudited double digit EBITDA for 2015.
BCS Solutions:
http://www.bcssolutions.com/
Quest and Barcode Specialties merger link
BCS Solution is a 20-year old reseller and systems company specializing in Wireless & Mobility Systems and, now, advanced RFID systems, courtesy of the acquisition of 'RFID Resolution Team'. Headquartered in Garden Grove, California, BCS has sales and systems offices throughout the U.S.
In November 2014, BCS solutions was acquired, creating one of the largest selling groups in the nation for Zebra/Motorola and Honeywell mobile computing devices.
From Quest Management's previous CEO and now Executive Vice President of Strategy and Acquisitions, Jason Griffith:
Test2
Testing
Alright, I'll cook something up later today
Anyone interested in remodeling the QUES board summary? It would help to give a good company background overview for those new to the board.
200 MVDA breach and hold complete :)
QUES breaking out on high volume
This morning announced very positive financial guidance for 2015: http://finance.yahoo.com/news/quest-solution-provides-outlook-2015-153100431.html
Breakout supported by 600% average volume (so far). Share price as it stands set to close above 200 day MA for the first time in a year, 20 day MA crossing 50 day.
The announcement of completed acquisition of ViascanQData is very near, and should further propel shares upward.
QUES breaking out on high volume
This morning announced very positive financial guidance for 2015: http://finance.yahoo.com/news/quest-solution-provides-outlook-2015-153100431.html
Breakout supported by 600% average volume (so far). The announcement of completed acquisition of ViascanQData is very near, and should further propel shares upward.
$QUES provides outlook for 2015:
http://finance.yahoo.com/news/quest-solution-provides-outlook-2015-153100431.html
They are predicting booked revenue of $62-68 million, without Viascan's $22-25 million (USD) contribution. That's $84-93 million USD.
Yep, looks like our patience might be rewarded finally
HUGE buys in right now, something good is definitely coming!
The announcement of the completed acquisition of Viascan should be right around the corner. Maybe before, but surely after, the wall at .37 gets broken.
Nice price action today
Here's a link to the conference call transcript in case anyone missed out:
http://ih.advfn.com/p.php?pid=nmona&article=67256845
"We all have had experience with Bee Ess "companies that have nothing, buying other Bee Ess companies with shares valued at way above last price....Obviously, Bee Ess.....In this case, QUEST and BCS, 2 companies in the top 5 in the industry buyin the leading company in the industry in Canada for SEVEN TIMES CURRENT VALUE"
Indeed, by performing their acquisitions with shares at such a highly-valued price, QUES is showing shareholders that their management are competent at projecting value in the company to others of the same industry (industry leaders, no less), who are no doubt business-savvy and careful in their decisions.
This is an excellent indicator to shareholders that QUES management know where they are going, and the fact that they have made all these purchases WITHOUT resorting to dilution to gain funds, and used well-priced shares rather than cash to avoid the large debt that would be difficult for a micro-cap company to accrue, further strengthens faith in management.
This things merely needs more eyes to begin it's ascent to a much higher PPS. One would think the IR company was working hard for this, but perhaps their approach is more tailored towards larger companies, with most investment firms reluctant to commit to micro-cap companies (although QUES does conduct itself in a different manner than most OTC companies). Honestly, that, and less manipulation of the bid/ask. I fully expect this thing to rocket once Viascan's meshing into the fold is completed and this is reflected in the quarterly, or perhaps the new beacon marketing technology from NCR will gain traction first (success from these will definitely get LOTS of eyes on QUES stock).
Either way, the company has a great-looking future ahead. GL to all
Shareholder conference call is 2 days from now, hoping for some good updates
Looks like the conference call date has been set! Looking forward to it
http://finance.yahoo.com/news/quest-solution-inc-schedules-conference-123000726.html