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You're welcome @LGO happy to share my thoughts
Thank you, I appreciate your PoV and candour. I hope it works out for all holders
Hi Fyoz,
I would not waist your time on him, he is a complete and utter plonker- what more can I say. lol
LF:- "When working in the MENA or LATAM regions you need to understand those markets and be on the ground there with local language speaking QFI executives - you cannot rely on third party introducers because they ultimately will not be focusing solely 100% on QFI"
Oh lordy, make your mind up, not so long ago you were saying we should have more 'salesmen' on 6 month contracts to bring in deals. Now you want Arabic and Spanish speaking QFI executives to be 'on the ground'
Really Lionel???
@LGO-fan.
Appreciate your comments and I hope I will try to add my insight when answering your questions -
1) The way you have to look at it is this , after 15 years trying to succeed - either A ) They have an "intelligent idea" but a product that ultimately the market doesn't need - so there is no fault with their business development strategy, it's just not a desirable product destined for obselesence or B) They do have a product that fulfills a need and can help the bottom line of it's clients but their business development strategy has failed.My personal opinion is the latter, and that they do have a viable product but that QFI's failing has been it's strategy on actually marketing this.
When working in the MENA or LATAM regions you need to understand those markets and be on the ground there with local language speaking QFI executives - you cannot rely on third party introducers because they ultimately will not be focusing solely 100% on QFI. That's my opinion, I may be wrong but if I was in charge of the company, that is what I would be doing.
2. Regarding funding others on here probably know more than me - "The initial tranche of the funding from the Investor is in the amount of £2m, and it will provide the necessary funding to continue the activities noted above through to June 2020, with up to a further £2m of funding available by way of a second Convertible Security after one year" this is what was stated in QFI's 23rd August RNS. My understanding of QFI getting the second £2m from Bergen would be subject to actually showing real progress in both share price and opportunities. 2020 is literally the last roll of the dice for QFI and failure to commercialize this year will mean they will go out of business.
LionelFancy,
I have been looking into this share now and then for many, many years and have never been fully convinced. I am somewhat more positive given the latest update (like the approach to find commercial partners at "negligible" cost), but was wondering if I could get your POV please. I hope you don't mind singling you out, but I liked your post. I thought it was intelligent, fair and balanced. Hard to find these days!
My questions;
1) Tough question: given QFI has been around for 15 years, do you fundamentally believe they have a viable product? The reason for asking this is simple: in my job I look at small start-ups with interesting technologies all the time. Those who have something real to offer, usually succeed. Those who have been "religiously" sticking to their technology for a very long time, like QFI, usually have an intelligent idea that can not be commercialized. I have been on the fence on this one for a long time and would like your POV. Not an easy one, but I feel I can ask you.
2. Funding from the latest RNS:
"Our existing cash resources continue to enable the Group to pursue our business development activities throughout calendar year 2020, with a further £2 million of funding potentially available to the Company from August 2020 pursuant to the previously announced convertible security instrument. If the Company is able to draw down this additional funding in August 2020, subject to conditions precedent being met, the additional funds would be expected to meet project expenditure that is currently anticipated. However, the Company is cognisant that in order to have a high degree of confidence that this additional funding is available, we will need to be able to demonstrate substantive progress on our projects and for this progress to be reflected in a steadily appreciating share price."
What are they really saying? On one hand they state they have enough cash for 2020 (ok for investors with a 8 months time window, assuming placing takes 2 months: too short for me). I was confused about the Aug statement: is this in case a commercial opportunity pops up that requires more cash? Or is this to have enough cash for 2021? They mention "we will need to be able to demonstrate substantive progress": that seems a worry to me. If there isn't enough progress, and cash runs out by end 2020, are they saying they will not take up the further £2mn. That would be the end of the company?
Apologies if my questions are daft. Haven't looked at QFI for over a year...
many thanks
Its not a grudge bp, he has a vested interest in QFI sinking. No shareholder regardless of how pee`d off they feel would ever talk about their own investment the way he and notable others do. He`s a fanny, simples.
Hi Fyoz I think LF has a Grudge against QFI and its investors I wonder why.
I bet you cant wait for this share to fail, whats the hell wrong with you man, very selfish person only thinks of himself.
LF:-"Now we have no strong pipeline or imminent deals"
You have no idea whether that is true or not. There could be numerous deals going ahead, all subject to NDA's
@Indigo "the share price is fantastically cheap" - Erm no, actually, it's priced at what the market values it at... it's not expensive, it's not cheap.. it's just what a QFI share is currently worth (and fairly considering the lack of any real tangible progress)
In Dec 2017 it was around 20p on the back of Mike Kirk actually saying he strongly expects KSA to sign.. fast forward
just over 2 years and KSA flopping just like Maersk and others... and it's fairly priced at 2.5p.. it's definitely not cheap.
Now we have no strong pipeline or imminent deals, only opportunities and a potential Morocco project in very early stages and one which the chairman himself has said is "small scale"
On your comment on whether it could hit 4.5p - I don't doubt it could do that given enough news but as we have seen in the past it will flop back down again unless they actually finally sign a client and commercialize this 15 year old business..
As for the SP to move 80% up to 4.5p on the basis of Morocco, I actually agree with you here but it's not going to happen quickly as it's still very early stages in this project
Indigo22 as soon as I receive my PPI payout I will buy somemore QFI Shares.
In honesty, looking at the Morocco deal *only* the share price is fantastically cheap. Not saying 20p is reasonable, but 4.5p surely is. I'm overweight on this but a deal's a deal so it's time for a little top up.
At the AGM they said that the *currently* agreed use-cases with the Moroccan mining client are in the '1 MMU range'. 1 MMU is approx 1000 tpd at full tilt.
The current estimates exclude any expansion into new areas with the existing client (which is plausible if QFI succeed with the initial project), and any acquisition of new clients/sectors in Morocco (e.g. cement, power, desal).
I imagine if we are successful in commercialising the product, then it will be rolled out in a staged fashion, as we are talking about multiple pieces of industrial equipment, rather than a megaproject.
Absolutely. I'd love it to make us break even on our current overheads. And obviously the significance of an operational commercial contract is without parallel.
Ideally close to or meeting the overheads for the business as a starter for ten. However if they land contracts on the back of this small scale trial then the confidence value would be priceless and to use proactive Andrew Scott's words " would put Quadrise into first gear" IMHO.
If Morocco and only Morocco passes all testing and goes fully commercial, what's the best guess for revenue to QFI per annum? I know these things aren't exact but what ball park are we playing in here.