Congratulations to all that followed my XBrane idea here, prompted by the below article from SeekingAlpha. The stock is up 40% in one month. More like this!
Quantafuel – is my second largest position. I have been buying almost every day over the last two weeks. The company is reporting on Friday and I believe that we are seeing a share price bottom. I have doubled my position in the last 10 days. The stock is now around 30 NOK, it reached 80 in late January.
The stock has been declining since some unknown seller sold 1 mln shares in an SPO managed by Goldman. Initially there was a concern that the stock was sold by BASF, which triggered the sell off. The company announced that none of its partners sold. That did not stop the sell off. The possible reason is that the stock was placed by Goldmans to flippers, who were expecting a quick profit and drove the share price down as they were giving up.
The company should report positive news to the market on Friday. Both plants are now in trial production. The Skive plant has delivered the first products to BASF, so there will be the first tangible revenues this quarter. I also believe that they will reiterate their guidance that Skive will be in continues production by the end of this quarter. I believe that the stock price is bottoming now and I bought on again on today’s mkt weekness. I believe that once they reach continues production the share price will break 100 NOK and once they announce one large plant construction with a strong partner (BASF, Vitol) the share price will start quickly approaching 200 NOK. I am very bullish Quantafuel. The investment thesis is well summarised here: