Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Its clear Qsep has major obstacles ahead and a dwindling fan base.
It's absurd that every new CEO revolution is heralded as the next savior and immediately given the keys to the throne. I remember what was said about the previous CEO who was thought to be some great deal maker.
Then as he was shown the door, the next guy steps up and spins the giant wheel of opportunity!!
Whacky... Qsep has touted its pipes as ASME certified for 5 years. Whether they proof test this after they were initially built is not significant news and typically that test could be done on site without the expensive transportations costs. This is easily seen as just another in a long line of fluff jobs.
“
AOT(TM) MIDSTREAM CRUDE OIL VISCOSITY REDUCTION PRODUCT CLEARS IMPORTANT COMMERCIAL EQUIPMENT CERTIFICATION MILESTONE
SANTA BARBARA, CA -- (Marketwired) -- 04/18/13 -- STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), a developer of applied efficiency technology solutions for oil and fuel delivery systems in the multi-billion dollar global energy market, announced today that the Company's AOT™ Midstream has achieved ASME (American Society of Mechanical Engineers) Section VIII, Division 1 certification.
The ASME Boiler and Pressure Vessel Code (BPVC) analyzes and tests the equipment to provide grounds for safe operating parameters, and a margin for useful service life for the product. The international code certification process analyzes the structural and manufacturing integrity of commercial equipment and is a part of the clearance process for installation of new equipment to commercial installations. Successful completion of this step is required prior to clearance from regulatory agencies to approve installation of the new equipment to customer installation sites.”
"The ASME certification process is an important milestone for our new commercial equipment," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "Our team and our supply chain have been working diligently to make the AOT™ Midstream into the latest 'Must Have' equipment for this important industry. Achieving successful ASME certification for the equipment is a key step towards achieving this goal."
“We have sent an AOT out for hydrotesting in anticipation of installation in the next 60 to 90 days.”
Qsep has to send static oil samples to Tao for testing (wait)and doesn’t have the equipment necessary to pressure test its own equipment in-house (wait)(wait more)
Please... it’s funny how the technology is never questioned. It’s either red tape or management or the Tcpl engineers not “understanding” what they were seeing but never Tao’s conclusion or the execution of this supposed technology. It’s always one excuse after another but they have piled up so high that the company can’t even sort out all the reason they have made for selling units. Translation to Arabic for the Basra deal...oil sample test at Temple that take months to turn around ...the list goes on and on! Never is there a mention that the concept could be ill conceived and therefore efficacy conclusions are likely be invalid. After 20 years of trying..there is little doubt.
Nor can the SEC change the laws of fluid dynamics!
Although the odds are very low, Aot best chance is to be used
as some sort of scale or precipitate reduction or water separation device which has been used by industry for many years. This of course would not require Aot to be fully deployed at 11 mile intervals in a 1000 mile pipeline and would be niche market at best! The idea that Aot would somehow reduce diluent use by some 60% is complete fantasy and highly unlikely.
“This Current Report on Form 8-K (including the exhibit hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
“
In other words the disclosure of the update in the recent 8k is meaningless and has no material effect on the company or its’s business prospects and is just a safe way for management to imply that there are greater things to come. Gee... I wonder where I heard that before! Nothing has changed here..the fluff continues and some investors seem to be willing to dust off the old pom poms for one more college cheer!
Same song different tune! If investors had a dollar for every time Qsep supposedly hit one of these self prescribed “milestones” then they would all be wildly rolling in dough!
Wow...another fluff job that’s morphed the story once again! Honestly not many will buy this delay factor as legitimate sorry to say. LOIs to determine scope of this or that is just nonsense and even if true not necessary to report as it not material until ink hits paper. One year to get to this point??? Hahahaha!!!!
“Johnson Fistel, LLP Announces Investigations of Aqua Metals, Inc., Ellie Mae Inc., PayPal Holdings, Inc., Xerox Corporation and OSI Systems, Inc.; Investors Encouraged to Contact Firm”
I think ANY company is potentially a target by this outfit but I’m curious to see the actual evidence of wrong doing. As reported it seems to be weak. In the US, if a company reports a material contract (8k)the terms are typically disclosed but if they do a company press release they can hide behind all types of safe harbor.
Lol!...if it was written in 2016 they could not report the operation through 2017? Here’s the paper and quote that this article was based on:
http://fractalsys.ca/wp-content/uploads/2018/02/2018-02-06-FRACTAL-SYSTEMS-CONFIRMS-ENHANCED-JETSHEAR-READY-FOR-COMMERCIAL-DEPLOYMENT-v2.pdf
“From August 2016 to August 2017, the company ran a 1,000 bbl/day demonstration plant near the town of Prevost, Alberta. Over 225,000 barrels of bitumen were partially upgraded using the company's Enhanced JetShear and Acid Reduction Process (ARP). The bitumen was sourced from an unnamed SAGD operator located south of Fort McMurray. Fractal says the demo plant was a success, and it's now ready for commercial deployment...”
A one year pilot is a legitimate test not a 36 hours fluff contest no matter what the volume. In fact Qsep the Tcpl test never ran at full capacity which is easily determine by calculating Tao’s own before and after pump power usage numbers. The condensate rig for KM didn’t even past the so called pre-acceptance clause which btw morphed from the “pre-safety startup” nonsense with no explanation!
This upgrading approach is how real legitimate companies operate. They get an ongoing small scale test for a year so they can work out all the issues that could arise in the field then after reviewing the data announce that it is commercially ready. They are a private company and have no incentive to raise public funds. Qsep has done the exact opposite!! They have said for years they are now ready for deployment even though they are only based on a few days of testing yet go out and raise as much money as they can by implying they are moments away from full scale deployment.
The major point being is that it takes years of testing in the field at scale volumes before any operator would even consider new technology and there are several other companies looking toward this “upgrading” process which makes logical sense to reduce the diluent ratios.
“For additional upgrading, the Enhanced JetShear module removes olefins from the naphtha stream using a low-pressure catalytic hydrogen polishing unit. Diluent volumes can then be reduced by up to 60%. This allows for up to 25% more bitumen to be transported in the pipeline, dramatically freeing up capacity.”
This is how pipeline operations will reduce diluent ratios. They will change the composition with cheaper processing method with these small processing units like jets shear which is in the field for months and ready to deploy. How will Qsep compete with actual players in the game with real technology?
http://www.oilsandsmagazine.com/news/2018/2/6/increasing-pipeline-capacity-without-building-new-pipelines-partial-upgrading-fractal-systems
“
And, if they get a pilot it's highly possible that the third time is the charm and they get a contract with annual recurring revenues, considering they have perfected the technology through real world tests on commercial lines with Kinder Morgan and TransCanada. “
Qsep can’t perfect anything without at minimum 6 months of running the rig day and night in all types of weather and conditions. To say simply they know how to fix the issues with only a few days of actual infield combined testing is not a sound conclusion. There is no more leapfrogging baby steps in favor of the big enchilada. Tcpl was a disaster and I’m sure management still trying to bury those results but I have no doubt news of Aots performance leaked out to other operators pros and Km could not be happy when Qsep used the KM pilot announcement as a counter force to the Tcpl termination 8k...basically a simultaneously release that’s about smarmy as it gets! I’m sure this played a role in determine how KM dealt with Qsep management after the first delivery of a shorted out Aot.
“
Trying to discount a pilot if QSEP are successful at getting one? “
“If” being the operative word and I’m happy to discount that one all day long especially if its coming from Qsep!
The point is that numerous iterations of opportunities have been squandered. This begs the question of Aot efficacy and general benefit of of this alleged technology , which is nowhere near any real deployment other than these hopeful free luminary sites.
Btw even if they get another pilot I would bet Qsep will cover all the transportation costs in and out and not charge a lease or rent for any of it. That’s the only way. This will cost way more that 100k a month which is the current managements estimates of the monthly cash burn. Lane has temporarily reduced this combustion by deferring Bigger’s severance paycheck and moving around the license fees but an accurate picture of Qsep obligations still shows them requiring a boatload more of cash just to maintain head above water. The next round of convertibles will need to be done very soon.
Lane might be the best guy for the job but even he cannot transmute lead to gold. I'm sure he is trying but QSEP has back to back negative field results that can no longer be pawned off as: terminated and suspended but still good! Every day they don't have a unit up and running is another notch lower of credibility. Honestly, they should use whatever money is left to entice a major player to play ball and get a free sample unit. It's the only way now.
Wow...markets hasn’t even closed and pundits are already slapping themselves on the back! Let’s come back in a few days and see where Qsep settles. Months of Lower lows and a 5 month communication blackout and rusting hardware NOT deployed anywhere. Heck at least the algae penny’s have a pool or Frankenstein lab they can point too! It’s green and it’s alive!!!Haha!
lol...the truth isn’t even know about Tcpl or the KM tests and those happened years ago. Heck Tao’s claims of how Tcpl didn’t understand the physics of the super magic pipe and that the huge reductions in crude oil viscosities were achieved with just a few micro amps of electric power, flys in the face of reasonable logic. This is a continent size salesman fluff job that still gets posted on a regular basis. Any expectation that this management crew will suddenly become transparent is just wishful thinking. They won’t change what has worked in the past and that is to show investors a big prop and double speak of numerous opportunities that are cued up. When they disappear (magchgr,Electra, Aot in China, Aot for offshore, Aot condensate et al. Nothing is mentioned. They are purged from the record. 10k and 10q don’t event mention the fuel injection devices which cost over 50 million dollars to develop( 90% was for overhead and executive comps) now R and D expense are dwindling and are compromised mostly of of licensing fees due from the first license agreement they have with Temple.
If anyone here has run a company before the concept of cash preservation ranks high on the priority list. Qsep has burned through so many war chests it’s no wonder they squeaked in passing the last proxy.
Everyone has valid reasons to buy certain equities and I’m sure many at some point have made questionable calls or had apparently good fundamental stocks go sour but Qsep is a different animal all together. They have no real financial plan other than to keep hope alive and raise more convertibles which I’m sure will ratchet up as pps declines. If Qsep had viable technology then industry would have taken a stake and got involved many years ago. They would have several strategic alliances in place, with ongoing customers testing products in the field running 24/7 for months at a time! A 24-48 hour test followed by a termination and suspension does not point to a emerging company about to get market adoption.
Please ..,,nobody is buying the Qsep packaged snake oil anymore. Dilution is only tolerable when the company needs to initially raise money not to use it as the sole source of financing year after year for 20years! Anyone who tell investors it not a big deal or that Qsep is in such a better position then 90% the entire Otc simply doesn’t understand how markets work or is pulling numbers from space...self proclaimed experts loose their shirts all the time!
Here the facts: 30% dilution of share ownership in last 19 months is massive and management is nowhere near finished hocking twofers convertibles @. 05 a share! No prospects of real business means more pain for Longs.
The tier which QSEP trades is the OTCQB with a .01 minimum bid requirement. The claim that QSEP share structure is "solid" would need to show a comparison of all listed equity market caps within the Tier. That info was not provided so its impossible to verify what is claimed simply because the author said it was so. From my perspective, anything north of 10 million dollars is wildly speculative and is subject to continued declines. It's fundamentally water seeking its level once again!
Qsep is not a real business and has no immediate opportunities to create revenue. This violates just about every financial measurement I would use to evaluate an investment...so no I'm not buying anytime soon nor is any commercial company interested in buying products QSEP makes. This means they will continue to sell convertibles until the overhang weight of these shares becomes unbearable. That is what I believe is happening now.
“That is the current status as far a the Q goes but I wouldn't be surprised to see the company come out with an update soon. A little Patience is a virtue. “
Lol...investors have afforded Qsep 20 years of patience and hundreds of millions of shares in dilution. The updates will come and go and I’m sure the current management will engineer some obscure test well outside the US but it will drag on and on and on! That’s the game but that ploy can’t be effective in today's market with so many other opportunities. The value of Qsep shell is not more than 10M based on what we know up to this point so with 500M common shares authorized and share conversion the only active source of financing, there is still way more downside.
LOI or pilots should not even be mentioned until it happens. The company history has been to always have several layers of promising opportunities but deliver on none of them. Then to add insult to injury, they spin the results as something very positive. It’s just a pathetic ploy to fill the air in between money raises.
Previous management has been given a perpetual free pass and I’m sure the current gang will get the same treatment! Remember Lane was the consultant who was hired to find positive cash flow properties for the now defunct Qspool. This blank check acquisition company was heralded as brilliantly conceived and positioned to take advantage of distressed assets after the oil crash. This would allow Qsep to generate some income while the company struggled to get additional pilots and prove out its devices. This concept was well received and then like all the other products before it fizzled out without much explanation. If the current CEO is such the industry expert then he would have brought them good deals quickly but nothing has been said in that regards. I’m sure the excuse will be pawned off on the previous CEO like it has been done in the past but buying a pizza stand would have at least generated ongoing sales and be worth something at the end of the deal. Also If the company invested just 5% of the money raised they would be sitting on a pile of cash today without a need to blowout equity at historic lows. This is either poor management, the device doesn’t work or both.
“The M&A strategy means that the AOT does not have to work for shareholders to get out alive.
Apologies for the dark subject line. This, however, is a fact: until KM, Newfield, or TC order the equipment, no one, not even Gregg, knows if it's going to be a success.
If it's not, this strategy provides us a way to get some residual value from STWA. It's a buyer's marker with these prices, and huge companies have had massive value knocked out of them due to the drop in oil. $50 a barrel is not going to last forever. If STWA can just get financing, then it will be able to acquire firms and ride out the terrible prices, and come out with value at the end of the process when asset prices go back up.
This is quite comforting - i.e., if this works, then the worst case scenario is still not cataclysmic.
Of course, if AOT works out (we should know within a matter of months, I hope) then the M&A strategy is even better.”
The “accountability” standard continues and unfortunately investors bear some of the blame because these issues are buried under the rug every year with very little objections by investors. Every time the new crew in charge wants to raise money they go back to the well and ask for more shares. The messages of praise and support for this systematic watering down of ownership is almost as bad as toxic financing yet it’s hard to imagine anyone with an investment here authorizing these moves yet Qsep still remains technically insolvent. As long as investors keep taking it on the chin, management will continue to throw sucker punches.
QSEP Dilution Train Keeps a rolling! On pace for another banner year of adding shares and watering down ownership. Last year up 22% Already up another 9% through July 31st, 2018.
total shares shares
issued added percentage change
2018 256,013,515 21,036,608 8.95%
2017 234,976,907 42,145,097 21.86%
2016 192,831,810 9,000,233 4.90%
2015 183,831,577 2,803,333 1.55%
2014 181,028,244 4,785,427 2.72%
2013 176,242,817 32,575,247 22.67%
2012 143,667,570 29,394,100 25.72%
2011 114,273,470 22,820,276 24.95%
2010 91,453,194 20,163,798 28.28%
2009 71,289,396
“Personally, I think there is more risk in not owning the stock. But that's me. Best of luck either way.
“
Any modern regression model would not agree. In fact I would put extremely generous odds of qsep ever reaching profitability at less than 5%. Doing so in the next 24 months would a small fraction of this ! The Turkish Lira would be a better bet!
“
I can't believe there is any debate over the technology still. Aren't you the only one still questioning it? Longs please chime in.
“
Lol! This is what was said to all the fresh new investors when management wants to pitch a new round of convertibles and its also what was claimed when Cecil and Bigger were making house calls to extract money from unsuspecting doctors and dentists with its famous friends and family tour.
A cursory examination of the state of the art of modern rheology reveals zero interest in Tao’s theories/claims and the only studies that can be referenced are third world graduate students trying to duplicate Tao’s gravity test. Apparently, something was lost during the English to Arabic translation or was it Russian or Chinese! Ha!!!
Regardless of all of this, logic dictates if the technology was proven it would be on a line making money today. The fact that it is not even close after three top to bottom management resets and six figure severance payouts demonstrates to everyone willing to listen that all is not well with this pseudo technology.
That’s meaningless. He gets paid to be interested. He was also paid as a consultant for the new fangled qspool to find oil and gas assets that could produce positive cash flows that could bolster the companies financial picture. However not a single deal could be made during a period when major declines in oil and gas assets were wide spread.
“
Has is been tough sledding? Absolutely. Have they not sold it yet? Absolutely. But there's a huge difference between not performing and not executing and nefariously trying deceive investors. It's not happening.
“
So the last 20 years and 100m dollars consumed is simply management performance issue and the company never lied about any of it’s prospects. That means all of it’s products ever pitched remain revolutionary but just didn’t break through...wow! FYI I can name a half a dozen blatant misrepresentations just off the top of my head. The error in this type of logic is that equating Qsep to a young little startup like comparing apples to oranges. Small start ups are afforded some level of slack for lack of experience. However Qsep has been given a two decade get out of jail card and has taken more swings at bat then 90% of the otc. Not to mention the trifecta of management resets and severance payouts. There is too much opportunity cost in giving this outfit another shot.
“The SEC was thorough with QS, I know that. They (the SEC) obviously went through all the filings and double checked everything QS were saying, and all the SEC came back with was the "proven" terminology. If there was anything deceptive in the Q's or something shady going on with anything the SEC would have uncovered it then. “
No they had numerous other issues with items like patents which were promoted like mad throughout Qsep literature touting the number of patents as some sort of tacit proof of efficacy. The sec called them on it and their lawyers had to agree. The indisputable fact is that Qsep has been unsuccessful at garnering any commercial adoption of any product is developed over the last 20 years. This discussion about whether the current CEO loves the prospects is meaningless. I would ask Bigger if he still feels that way. After all he was rich banker(chuckle) and would never waste his time unless he knew it was a sure thing! Lol!!
“
Lane vetted re company before coming on board, and would never have taken the job if there was any lies or coverups or anything like that. To try and claim that is the case is intentionally lying. Simply absurd this crap. “
Unless you are Karnak with a magic crystal ball no one knows what motivates any Qsep executive or any investors for that matter. Btw the same argument has been made over and over with a hosts of celebrity names and white hot executives. None could land a deal after 20 years burning 100M dollars while diluting its investors to pieces.
No company public or private gets that kind of break.
The lies of previous Qsep management now obviously cannot be easily reversed by Lane and company. His job is simply to firm up the optics and raise more money while remaining pretty much silent. Almost 18 months after taking the helm there is no “free” pilot installed. How tough could it possibly be??? Hey Xyz oilco we at Qsep have a revolutionary magic pipe and will give it to you for free and it will save millions in transportation costs! Interested?
Magnets don’t work on crude, fuel, blood or chocolate. Any suggestion that they do would be an intentional misrepresentation of the companies testing results...which are based on a whacky scientist unverified claims of efficacy and have been clearly noted by the SEC as being: “ unproven” Whether someone is long or short is of no consequence the results will be the same. Company will sell convertibles until they exceed there allotted share issue then they will authorize more! When they do they will use the old poison pill but all of us know no major wants to “takeover” this POS. Just like Qsep will never uplist.
Whacky...yes there is coverup with KMI but you have to dig deep into the releases as Qsep intentionally doesn’t spell it out. Hedge funds have teams that just look through footnotes of releases to dig out the truth. All the info that took down Enron was buried in their disclosures prior the collapse. Qsep does the same albeit on a nano scale. Management feels that the majority of its investors have little understanding of its technology and more importantly its corporate operations so they can put in what ever they want as long as they hide behind a safe harbor.
It’s funny how they all end up at the same crap penny that makes no money. Cecil got a million shares allotment for being on the BOD. These are pathetic hustlers that continue to profited from investors loss. Blum is pushing 80 and you would think he would take the foot off the pedal but like Sheldon and Kyte they must love the money more than being honest and respectable. Any public company hiring these fools without taking note of their performance record is basically at the end of their rope. License to steal!
“The fact that they have 2 new US based oil companies that are interested in an AOT pilot program is good news as far as I'm concerned,
and shareholders should be happy about that new development”
I have heard every excuse this company has put out. It’s simply flawed logic to keep assuming any of these so called pilots will ever produce anything of value. The time for pilots and testing is long gone. If any of these devices based on Tao’s theories worked then they would be deployed today and the company would not be forced selling convertible shares and warrants at .05 cents.