the quiktrak philosophy

Yesterday QTK was traded 2 times. A total of $1750 dollar worth of QTK traded hands. It wasn't until almost 5 hours after the market opened that someone decided to do a trade on Quiktrak.

Is this the sign of a company with a future on the ASX?

I don’t think so. I believe their days spent on the ASX are now numbered.

2 years ago, QTK traded at 41 cents on the back of announcement purporting that the company had in excess of $1 billion worth of contracts with China.

These 2 years have passed and the company has shown us in a recent report there is no hope of seeing $1 dollar from this $1 billion. Quiktrak had even spent a lot of shareholder money setting up in China.

What a waste.

Paranoia seems to also be getting the better of some supporters stating on public forums as a warning “we have all the information we need on you”.....”Beware...the invites are coming soon”. Why is there so much paranoia surrounding market investors having their own opinion of a publicly listed company on a public share discussion board. It as if public discussion surrounding the company needs to be censored, almost communist like, one must not develop their own opinion on Quiktrak likely chance of staying afloat. It’s gone as far as threats, background investigation on people, scare tactics and sourcing and releasing those “QTK doubters” personal and private information on discussion boards in an attempt to discredit them.

I had one in the past stating “Oh Bionic Boy...I see you have an IT company”. I was so concerned after this I considered shutting down the business, deregistering, booking a one way ticket to South Africa and hiding somewhere in the desert.

I decided against this as news was released to the ASX regarding Quiktrak’s new focus on a new distant land...South Africa. “Bugger I thought...they might find me there too”. Who was I to ever discuss a company on the ASX on a discussion board? I should have just listened to them and “bought all I could at 40 cents”..And more all the way down to 5 cents. Silly me that I did not.

Quiktrak is 1 of 1400 companies listed on the ASX. Companies come and go...it’s very common. They list, they underperform, they delist and shut down. Someone does win during this process and these people are the type that starts off the listing with giving themselves a massive amount of shares in the company and at a huge discount.

I have seen research showing MP got approx 150,000,000 shares at 0.007 cents and brought QTK out of administration...yes...the company had failed previously too and a revival attempt was made. QTK was admitted back to the ASX for trading.

With some fancy wording in ASX releases and a lot of public forum support from some key members, enough faith was instilled in the company to see it trade as high as 41 cents.

2 years after reporting on $1 billion worth of contracts with China, the company has shown the market that the contracts in China are no longer and that maybe, just maybe...they can try to make money in South Africa.

At which point does current shareholders, potential investors, business partners and potential clients realise that not only is Quiktrak's technology now so outdated it’s not being taken up in projects but that they may been cajoled into thinking that Quiktrak really had a chance of success? I believe that time has arrived.

With the shares falling from 41 cents to 5 cents since this debacle and the recent report QTK released showing an independent auditors worrying results and concern for the business surviving in the near future, we can safely assume QTK are in some serious trouble.

Quiktrak never seemed to have trouble finding money in the market to keep the business afloat and pay their electricity and directors $250,000 a year. The company has successfully and continuously convinced shareholders and sophisticated investors to back the company. Each time a capital raising has been completed, the shares seem to sink to new lows. The most recent placement of shares in the company was at 12.5 cents to raise $3 million dollars. 8 weeks later, the shares have more than halved. Let’s not even discuss the money owed to Bell Potter for the convertible notes to the tune of $6 million dollars which somehow is soon to be repaid.

Quiktrak really never had that problem of getting the cash from the market. There was one big problem with the company.....their ability to turn this cash into more cash and make some profit on it. This one problem is what faces every business and every person in the world. Quiktrak like many have failed to do this.

Did Quiktrak in its post administration days kick the company off with a new an invigorating philosophy of : “Buy High...and sell low”?

You can question this by their recent reverse acquisition of MKT by quiktrak buying MKT for $35 million and now realising its worth $20 million or less...another massive loss for QTK of $15 million.

A recent lifeline throw to the company and recent appointment back to the board of QTK for Mark Pallister after his notorious dance with ASIC for fraud charges could make QTK seem more appealing.

But again, we are faced with that one niggling question that has never been quashed by the company with results:

"Can quiktrak make money?"

Before it went into administration, it did not make money. After administration it has constantly gone backwards. No amount of money seems to get the company hungry for success. Potential projects valued at hundreds of millions across the globe have still not charged up Quiktrak enough to turn the Quiktrak business into a profitable one.

160,000,000 shares in QTK issued to Mark Pallister still does not seem to be enough of an incentive to get Quiktrak in the mindset of "Buying low...and selling higher".

Although...not all is lost. QTK still is currently legally allowed to list on the ASX.

They are also still legally allowed to make announcements to the ASX and the market regarding its business.

We can all expect then that there is a good chance Quiktrak will attempt to release some more announcements to the market about how it will now turn things around.

Who will believe them this time?