Gday Clyde,
Yes a frustrating time, however im still of the belief the Company at the very least is heading in the right direction under MB. He’s only been here 18months. The key of course to improved margins and ultimately positive cash flow is apart from costs and filling that spare capacity with an uptick in production, is converting the recent interest from ATR, arguably Chemring, the Light aircraft mob in the US and the Team Reaper drone consortium into tangible opportunities for Qure/RST. MicroX saw the opportunity and grabbed it, all parts using new tech. These guys are not on board to take advantage of our autoclave skills, there are hundreds of companies around the world that can do that with the right licensing. What these companies are interested in is the new tech (Chemring arguably due to a hesitance to change production techniques on an already live F35 contract - im hopeful QHL will try anyway) and it’s improved manufacturing rate, Class A finish for automotive and lower cost to produce. I agree that the new tech is the key longer term, we’re fortunate we have a good contract base to work from in order to buy us the time to pursue these opportunities.
Still a higher risk game but I’m willing to wait it out. Remember also we were an R&D shop for a long time and $1 was purely an irrational market back then, eventually the market and share price return to fair value, at least we are producing now and making some small waves under an excellent CEO.
Cheers.
QHL Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
(20min delay)