Q: Questor QST is at 52 week lows and still can't seem to get an traction with their sales or rental of equipment that burns waste methane emissions. The CEO was ousted and then quickly reinstated. I understand that she got a termination settlement and then a signing bonus when she came back. If so is true then the BOD is really a bunch of clowns posing as buiness people. The auditor has also been switched, Does this happen oftem? I still have a small holding in this loser company. I don't think I will sell before 2024 in case tax loss selling is driving the the share price even lower, but I think it is time to run from this dog of a stock. 5i used to kind of like this company. What is your opinion now?
5i Research Answer:
Auditors do not change that often, and a change can be a red flag. In this case, the fact that a big name auditor (PriceWaterhouse) quit on 'its own accord' and was a replaced by a much smaller firm is an even bigger red flag. We can't say much about the CEO flip-flop. With four board members resigning, obviously there were disputes. But your summation seems accurate, at least based on public info. We did like it at one point. It had cash (still does) and was growing nicely. But sales have gone from $30M in 2019 to just $9M last year, and the company promised too much and delivered too little. Now, at only $19M market cap, it is too small for serious consideration, in addition to the other concerns.