Prognosis on Questor (QST)

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It’s been a year since Matt’s answer about Questor (https://www.stocktrades.ca/premium/answers/questor-technology-inc-qst-v/). The stock has been stuck in the 1-2 dollar range for a while. In your opinion, will it ever come back to $2+ price?

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Asked on January 21, 2022 7:17 am
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Company is struggling. As we mentioned a year ago, it just really hasn't moved the needle in terms of recovery. Negative operating income for 6 straight quarters, EBITDA margins suffering, cash flows declining.

It doesn't help that analysts see revenue staying flat for the next few years. Overall, really doesn't move the needle for me. The selloff is likely overdone at these prices. But at $2, this implies a 50%~ increase, which puts the company's market cap at $57M. If it hits next quarters revenue estimates, this puts it at 10x trailing sales valuation (at the $2 mark, not current prices). I'm not really sure the market is going to be willing to pay 10x sales for this company.

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Posted by Dan Kent
Answered on January 21, 2022 11:11 am