On Wednesday it will be two weeks since QFUEL CEO announced Skive was restarted after all feeding issues have been resolved.
Pareto analysts wrote that Proof of Concept might be two weeks of continues production. We do not know if this is accurate. If correct and if the plant did not experience some issues, we could have the Proof of Concept this week.
QFUEL is now running two lines in Skive – QFUEL has two chances to reach this self imposed milestone.
QFUEL reminds me our investment in FB. The company was listed at USD38 in 2012. There was a lot of bad speculations, the share price went down. If I remember correctly the share price bottomed at USD17 around the time the intial lock-ups expired. Our family office was buying at those levels. We sold several months later at USD55. We felt proud, our performance was very strong that year. I feel much less proud of the trade now. FB today is around USD300. We got the entry point right, but we sold way too early. We underappreciated the game changing potential FB had for our society.
QFUEL might be at a similar stage. It did not deliver the PoC last June as Kjetil promissed. In combination with his departure the investor confidence has been shaken by this. But if one believes that chemical recycling of plastic will be a major business in the near future, and if one believes that QFUEL is the most advanced and most ambitious company in the chemical recylcing area (as Dr. Lach stated when he joined QFUEL) than it does not matter, if they reach PoC this week or next month. In our view the investment story is strong either way.
Additional disclosure – we have taken advantage of the turmoil and increased our QFUEL position by 20% this week.
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.