Potential competitor, page-2

Interesting article.

I read it more as "save our university dept, we have many innovations in progress", rather than "we've got the next big thing".

But the point is very valid and one I've espoused on the forum before - QHL are slow to progress from technology to commercialization. Old school thinking.

The challenge is they are in a fast moving industry of transient suppliers besides their low margin F-35 and C130J contracts. In my opinion, QHL are not moving fast enough such that their competitive advantage (and margin potential) may well wear out before they grow to critical scale. That means by the time they progress, they may be forced to take a price on carbon fiber production rather than setting one, and quite frankly they dont have the scale at that point. There's also still confusion - are they a carbon fiber part manufacturer, or a process equipment supplier? Currently they're a little of each and by share price observation, broadly ineffectual at both.

I also get the impression they are very research oriented - lots of things in the works but some of these things take years to boil over if at all - I raised an eyebrow when the Futuris work was stated in late 2016 to be commercialised by mid 2017...but I'll give them the benefit of the doubt. I could yet be wrong but the updated funding ANN for research seems to suggest we wont hit that mid-year target.

Continue to expect flutters when new ANN come along - I'm also waiting for an ANN saying we are working with TomCar on structures (hint: search the research papers to get an idea whats in the pipeline) but I'm not expecting to see that one come to fruition for yonks if at all.


I get that its not always their fault (they are in deeply conservative industries, it can take over a year to change from a mild steel to a stainless washer). But from an investor perspective, you tap flesh off your bones waiting.

Add to this management and leadership appear to lack passion for the business, appears to be more of a personal career or research enabler, rather than living and breathing the growth story...and there you have it.


I do think theres a great underlying story with this stock. Just dont expect fireworks until the Quarterly reports start showing irrefutable results and the market drags this out of its stupor.

You never know, the new CEO may help but I think the issue runs deeper - I think organisational culture is partly at fault.

Needless to say, all of the above is my opinion as an outsider. I'm not privy to the business inner workings, just going by what (of which there is little) visible to me.

Hold this one and it could make you a nice return in six months, or six years...unless we are beaten by something faster, leaner, meaner.

Stay safe and GLTAH