Quadron Cannatech made the first sale of their shiny and cool Boss CO2 extraction system to a U.S. Client today. The name of the client wasn’t disclosed, but Quadron did note this was the third sale of their rig in two weeks.
This marks the latest in a series of moves where QCC has really tried to shake up it’s image and get some traction. I’ve been following both their solid PR moves, and the business decisions on the ground.
If you go back and read those pieces I have pretty solid point of view on these guys. It was a company in trouble, who brought in some better management and has spent the last three months trying to wash off the stank.
How is it working?
Let’s see the numbers:
Here’s the last five months:
The rise began the same day I wrote my last piece on QCC. The high was .40 and I thought that was great. Folks look like they finally agreed with my analysis. (and I like being right). Then today on the heels of the sale announcement well, you can see for yourself.
Big spike comparatively, little gain past the initial bump. I feel like a 58 per cent rise in one day could be one of two things (probably). Either the signs of actual sales has finally convinced enough dominoes to fall to move the market… OR… this is the beginning of a short activity of some kind.
If it’s short activity, this could be signs of a mini-squeeze as the folks who are shorting this bad-boy see today’s announcement as bad news for their positions and rush for cover. It could also be a more intense buying up of shares as players begin to expand their holding. I’ll be very interested in the stats in January.
It’ll be a few days before there’s any hope of things looking clearer, but I suspect in either case, the immediate effect will be a minor sell-off and a rebound back to around where it is today. This is of course in line with my feeling the company itself is still undervalued.
What to do, What to do.
Fundamentally, QCC is a good company with strong tech. I thought around .40-50 was a good value. Closing today at .73 means if you listened, booyah. Getting in now is risky. I think there’s a correction likely before a bounceback, but like R2-D2, I have been known to make mistakes… from time to time.
I’d say if you want to hold long, wait to see if the price drops a bit. If you’re into short action, I think there’s some juice here. The bottom line is that QCC is on the right track, regardless of market oscillation.
FULL DISCLOSURE: QCC Is a client. I do not personally own stock, nor do I possess any interest in a CO2 extraction rig. I may one day want to see one in person though.