QS Energy Inc (QSEP)

[Flubug]

On the day the "order" is received by SWTA some interesting things will start to happen. Obviously, a bona fide order will be the ultimate verification of the AOT technology and of STWA as a real company. The stock should gap up to at least $2.00/share. This is a believable price as the all time best price the stock ever reached was $1.90 or so some two years ago right before the first Shareholder meeting. $2.00/ share also stands out as the minimum price necessary to qualify for up listing to NASDAQ. We now have an investment firm supposedly courting the large mutual funds but the catch 22 there is most of the ones that would be considered heavy hitters in the investment world are not allowed to invest in penny stocks. We need to be up listed to NASDAQ or the equivalent for the real heavy hitters to start investing.

So here's the other problem, on the day of the announcement of the purchase order there will be many people interested in buying the stock but maybe not so many willing to sell their stock. After all how many of the 180 miilion shares (float) are held by institutional investors and how much of it is held by private investors like those of us that post on this board? If many of the stock holders have been waiting 10 years or more to cash in they certainly won't sell when it goes to $2.00 per share.

So where is this stock going to come from? Well the dynamics of supply and demand dictate that if there are many people who wish to buy and few people that wish to sell, the price goes up. You also have to consider the possibility of a severe short squeeze that will also put pressure on the share price to appreciate.

So what will happen? My prediction is that this huge demand will drive the stock price higher than $2.00 a share simply due to the lack of shares available for sale. The price will go high enough for STWA management to then authorize a stock split along the following schedule keeping in mind that the price of the stock after the split still needs to be above $2.00/share to qualify for uplisting. When the stock reaches $4.00/share they split it 2 for 1 which will increase the float from $180 million shares to $360 million shares. If the stock quickly appreciates on the day of purchase announcement to $6.00/share then split the stock 3 for 1 increasing the float to 540 million shares which would be adequate for some healthy trading. To get to $6.00 per share the contract will have to show that revenues/profits will be such that the price to earnings ratio of the stock can be at least $1.00/share. So for this to happen that first contract will need to show a purchase of STWA equipment and technology somewhere in the neighborhood of $540 million dollars.

I am not a financial person by training so these numbers may have no basis in reality but hopefully it can start a conversation among those of us who better understand this kind of thing.