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This is a situation I am beginning to investigate. I think it's good enough to bring to your attention. I pick these situations from those presented to me by my network of brokers, market makers, PR companies, investment bankers, venture capitalists, & key people in various industries. My primary criterion is the same as I apply for Conservative Speculator -- my opinion of the stock's potential to double or better in the next six to 12 months.
My opinion of this situation will be online here until I find another one for you. I will, however, occasionally do updates on situations featured here which I continue to follow, either in the "Larry Oakley's Opinion" column, or in the "Larry Oakley's Comment" column. Please -- do not use these picks for investment decisions unless you decide on the basis of facts you uncover in your own investigation.
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Current Larry Oakley's Stock Pick:
Date Posted: 04/06/13
Quest Water Global Inc. (OTC Markets: QWTR)
Quest Water Global Inc. (OTC Markets: QWTR)
Comment
I heard about this emerging growth company from an old friend. From what he described to me, I was so impressed with the potential that I decided to tell you about it. This editorial is my initial introduction to you regarding QWTR. From what I have so far learned, this certainly looks like a winner. Check it out – I believe that you will agree with my enthusiasm about this situation.
A Bit about QWTR
Here is what the company says in all of its news releases: “Quest Water Global Inc., & its wholly-owned operating subsidiary Quest Water Solutions Inc., is an innovative water technology company that provides sustainable & environmentally sound solutions to water scarce regions. We use proven technologies to create economically viable products that address the critical shortage of clean drinking water in developing countries. Our goal is to address the vital issue of water quality & water supply by providing an alternative, sustainable source of pure water at the smallest possible environmental cost to global areas in need, while becoming a leading company in providing turn-key solutions using alternative energy for the purification, desalination, & distribution of clean drinking water.”
Key Facts
Business: Drinkable Water Systems
Exchange: OTC Markets
Symbol: QWTR
Price (4/5/2013 @ 3:21 PM): $0.0910
Volume (so far on 4/5/2013): 38,538 shares
52 Week Range: 0.06 – 1.60
50-Day Moving Average: $0.12
200-Day Moving Average: $0.40
Average Volume (3 month): 69,840 shares
Average Volume (10 day): 76,014 shares
Approximate Market Cap (intraday): $7.72 million
Approximate Shares Outstanding: 84.83 million
Estimated Float: 83.09 million shares
Fiscal Year Ends: Dec. 30
Most Recent Quarter (mrq): 9/30/2012
Total Cash (mrq): $13,180
Total Assets (@ 9/29/2012): $286,000
Current Liabilities (@ 9/29/2012): $711,000
Total Debt (mrq): $81,870
Total Stockholder Equity (@ 9/29/2012): ($507,000)*
* This is a negative number based on the company’s R&D phase. I recommend that you do not base your investing decision on a company’s development phase, but instead on its probable future income & on its marketing plans. I recommend situations at an early date in their existence, which I have found to result in the greatest appreciation if I like what they are doing & believe that they will have exceptional market acceptance. QWTR is one such operation in my opinion.
QWTR’s AQUAtap(TM) Water Distribution System
Utilizing patented, solar-powered, water purification technology, QWTR developed a highly efficient, self-contained, community-operated water distribution system, designed to provide a sustainable solution to communities who lack the resources & infrastructure to access a clean, reliable water source. QWTR’s compact, transportable water purifier, the AQUAtap(TM), is a powerful water filtration system that can take a typically unsafe water source, like polluted wells, rivers, lakes, & boreholes, as well as saline & brackish sources, & create 100% purified, natural drinking water for entire communities, with an average output of about 20,000 liters a day. The patented Aquatap technology is also beneficial to the environment, using no harmful chemicals throughout the entire process as well as producing zero carbon emissions. The AQUAtap(TM) was designed at the request of the Angolan government, with ease of transport, installation, & operation in mind.
QWTR’s Initial Market -- in Angola
This is a quote from QWTR’s web site:
“Our initial focus is on Angola, Africa, due to their acute shortage of clean water & their pursuit of a practical, economically viable, turnkey solution. As a result, our first objective is to focus on Quest’s primary business of marketing & deploying the AQUAtap Community Drinking Water Stations into the country.
“Angola is Quest Water’s first strategic market entry due to the collaborative relationships that we have forged with senior government officials, & NGO’s (Non-Government Organizations). Quest Water Global first presented its AQUAtap Community Drinking Water Station proposal in conjunction with Angola’s “Water for All” program to Dr. Benjamin Dombolo, the Director General of the Ministry of Industry, & to the Secretary of State for Rural Development, Dr. Filomena Delgado, in June 2009.
“Subsequent to the success of the initial presentation, Quest Water was invited back to Angola to present its proposal to the Secretary of State for Industry, Dr. Kiala Ngone Gabriel, & to the Secretary of State for Water, Dr. Luis Filipe de Silva, in December 2009.
“In June 2010, Quest Water received a formal request from the Ministry of Industry for the installation of one complete, fully-functional AQUAtap Community Drinking Water Station for demonstration & assessment purposes. Under Secretary of State Gabriel, the Ministry has the official capacity to undertake assessment of all technology pertaining to the “Water for All” program.
“The first AQUAtap™ installation in Bom Jesus became operational on March 1, 2012 with the 500 residents of the village drawing approximately 10,000 litres of pure water a day. The Secretary of State for Industry officially inaugurated the AQUAtap™ on March 16, 2012. Included in the opening were numerous Ministry of Industry Directors, technical advisors, & engineers. Analysis of the product water from the AQUAtap™ & a comparative analysis of the product water & source water from the Kwanza River were performed by EPAL, a government agency & laboratory, & AngoLab, Quest Water's private water analysis laboratory in Angola. The results of the product water analysis exceeded World Health Organization (WHO) standards for drinking water, while the results of the analysis of the source water proved it was not fit for human consumption.
“The Ministry of Industry & the Ministry of Energy & Water have been extremely supportive throughout the entire process & of what Quest is attempting to achieve under their national "Water for All" initiative.
“Angola is Africa’s second largest oil producing nation & fifth largest diamond producer. It is also has one of the world’s fastest growing economies, with the revenue to invest in delivering clean drinking water to its citizens. There is also plenty of fresh water – it’s just not clean. The country has the most water of any African country, but it also has the highest infant mortality rate. However, it’s not malnutrition that is the cause – it’s water-borne diseases.
“In Angola, almost three decades of civil war devastated water systems across the country, leaving millions of people without clean, reliable municipal water supplies or basic sanitation. Presently, the quality of water is still very poor, & in fact is considered harmful to public health.”
Important News
1/24/2013 -- QWTR announced it signed a Memorandum of Understanding ("MOU") with the Water for Women Foundation ("WFW Foundation") to deliver water purification solutions to rural communities in Southern Africa. The MOU focuses on Quest Water & the WFW Foundation assembling, deploying, & operating the Company's AQUAtap(TM) Community Drinking Water Supply & Distribution Stations in specific geographic locations within South Africa's nine provinces, including the enclave of Lesotho. The intent of its collaboration is to provide pure drinking water to rural communities including approximately 1,300 rural schools that currently lack a natural supply of clean water.
"We believe that Quest Water's purification & distribution system is an attractive & viable option for Southern Africa," said Ann Heystek, Chairman & Founder of the WFW Foundation in South Africa. "Quest Water's AQUAtap Community Drinking Water Stations are ideal for regions that lack adequate infrastructure to distribute clean drinking water to remote rural areas. We have been working with local government officials & financing sources to identify water technologies that offer safe & economical solutions while employing the best practices in green technology to bring clean water to those most in need."
The mission of the WFW Foundation (www.WFWFoundation.com) is to bring awareness to the plight of women & children in rural areas throughout Africa through education & funding initiatives that bring clean water to prevent life threatening water-borne diseases & enable sustainable agriculture.
"The Water for Women Foundation is the ideal organization for us to partner with. They are committed to finding innovative solutions that purify contaminated water for women & children in rural areas, & have the local & global connections to make their projects happen," said John Balanko, QWTR Co-Founder & CEO. "Our initial objective is to identify & prioritize several rural schools that are most in need & install customized AQUAtap(TM) Community Drinking Water Stations commencing in 2013."
About Water for Women Foundation
The Water for Women Foundation's objective is to bring awareness to the plight of women & children in rural areas throughout Africa, which will uplift & empower through education & funding initiatives that bring clean water to prevent life threatening water-borne diseases & to enable sustainable agriculture. 100 to 150 million people will be lifted out of hunger if women have access to vital resources such as water. It is our belief that in raising awareness, governments across Africa will support our initiative to bring valuable technological expertise to our shores; to enable local manufacture & production of biotechnology, nanotechnology, & solar technology products, & make them more affordable & accessible to those in need.
8/9/2012 -- QWTR, an innovative water technology company, & developer of the AQUAtap(TM) Community Drinking Water Station & WEPS(TM) Water Extraction& Purification System, announced the successful visit by Angolan Ministry of Energy & Water & Ministry of Industry officials to the Company's operating AQUAtap installation in Bom Jesus, Angola. The Secretary of State for Energy & Water, & approximately 25 other Ministry officials, joined Ministry of Industry representatives 8/3/2012 for a tour of QWTR’s solar-powered water purification & distribution system in the rural community 50 kilometers south-east of Luanda.
QWTR’s management believes the joint visit represents a key phase in the Company's business operations in Angola under the country's "Water for All" program, & that the success of this visit by the two ministries will present Quest with opportunity to move to the next stage of relations with the Angolan government.
"This joint visit by the two ministries to our AQUAtap installation in Bom Jesus is one of the most significant milestones in Quest Water's two & a half years working with the Angolan Government," said Peter Miele, Quest Water Global Co-Founder & Executive VP. "One of the challenges in Angola is distribution & getting clean water to residents of rural communities lacking infrastructure. Our AQUAtap Community Drinking Water Stations were designed in consultation with many of the Angolan government officials who toured the site last week."
Costa Joaquim, Quest Water's project manager in Angola was present at the event to demonstrate use of the AQUAtap, & to answer questions from Ministry officials. According to Joaquim, "The viewing & demonstration was a success & ran smoothly without any hitches, & response from attendees at the August 3rd event was very good."
The first Quest Water AQUAtap™ installation in Bom Jesus has been successfully operating since March 1, 2012 with the 500 residents of the village drawing approximately 10,000 litres of pure water a day. The Secretary of State for Industry officially inaugurated the AQUAtap™ on 3/16/2012, & the visit by the Secretary of State of Energy & Water last week was a key step in moving the project forward.
About Angola's "Water for All" Program
The "Water for All" program ("Agua para Todos") is a $650 million initiative of Angolan President Jose Eduardo dos Santos. The program is managed by five Ministries: Ministry of Industry, Ministry of Health, Ministry of Agriculture & Rural Development, Ministry of Environment, & the entire program is coordinated by the Ministry of Energy & Water. The program was launched in 2007, & began in 2009/2010. The first phase will continue through to 2015, with the second phase continuing through 2020. Under the program, Angola has committed to providing clean water to 80% of its rural population & 50% of urban dwellers by 2015, with targets raised to 100% & 80%, respectively, by 2020. Current total population of Angola is approximately 19 million with 56.7% of the population being urban & 43.3% rural.
Management Team
John Balanko is President & CEO/Director. He has been involved in the clean water industry since 2000 & has an extensive background in corporate finance, sales, marketing, contract & license negotiation, project management, & business development. Over the past 20 years, he has held executive positions, including being a member of the Board of Directors, with over a dozen private & public companies. His involvement within the water technologies sector began in 2000. In 2002, he founded & was managing partner of Liquid Air San Diego, a distributorship for parent company, H2O Liquid Air. In 2006, he established Environmental Water Solutions, the predecessor to Quest Water Solutions Inc.
Peter Miele is Executive VP/Director. He has over 25 years of entrepreneurial & executive experience & has been involved with public & private companies in strategic management framework, business development, marketing, design, & branding, along with holding Directorship & Corporate Development positions. He currently holds a position on the Board of Directors of Fibresources Corp., a TSX company, & has been on the board since 2006. In 2004, he was involved in the successful launch of a bottled water company. He was involved in the strategic & corporate development of the company’s overall corporate branding, as well as creating & facilitating the company’s marketing & production of new brands of bottled water products. In 2006, he held the position of managing partner with Environmental Water Solutions. He is currently Executive VP & Director of Quest Water Solutions Inc., which he co-founded.
Afonso Vicente Calala is Angola Operations Manager. He is a Reservoir Engineer, Executive MBA, & M.Sc. in business administration. He is a native Angolan, now living in Canada. He brings 15 years of bottled water management experience from Culligan, one of the largest bottled water producers in North America & Europe. He is the founder of AVC Canada Corporation, a company that has been involved with the bottled water industry since 1990. He has vast experience marketing bottled water in Angola, North America, Venezuela, Panama, & Ecuador.
Jacqueline McClure is Corporate Communications Manager. She began her career working in the advertising & marketing industry, eventually moving on to work with major business accounts in the telecommunications sector. In the past several years, she has worked as a Corporate Communications consultant within the advertising & biotechnology sectors, & most recently, for the past three years in the multi-billion dollar water industry. As Corporate Communications Manager, she creates, implements, & oversees communications programs that effectively describe & promote the organization & its products. She assists in the preparation of presentations geared toward prospective investors, potential joint venture partners, & the general public. She plays a strategic role in managing the company's relationships with its key stakeholders & in promoting corporate reputation & corporate social responsibility.
My Recommendation
Some of you are aware that I was the president of a water company in California many years ago, & when I see a situation that has some rather attractive future potential, I like to check it out. I actually like this situation & suggest that you personally look into taking a position in its shares because I feel that its future growth potential is worth the effort. I strongly suggest that you do some homework before taking a position. Incidentally, I am satisfied sufficiently enough to bring QWTR to your attention.
I was rather curious, however, regarding the large 52-week share price range. After investigating, I decided that the recent price is in line with what I expect for a company in QWTR’s present point in its history. I did conclude that most of the reduction evidently was related to the firm’s trading having been halted last year for a relatively short time. A news release issued by QWTR on 8/23/2012 is appropriate to note here:
8/23/2012 -- QWTR advised that as of 4:30 PM (PDT) on 8/22/2012 the halt trade order issued by the BCSC on the Company's stock in the Province of British Columbia on 7/31/.2012, has been lifted. Consequently, B.C. shareholders are once again free to trade the stock. The Company encourages anyone interested in the Company to review the Company's filings with the Securities & Exchange Commission (US) or on SEDAR (Canada).
In investigating a bit further, it appears that the halt & information that was circulated at that time may have been caused by a person who shorted the company’s stock. I am presently satisfied with what I have learned about the company’s prospects, & I really like its present growth potential. Bottom line, I suggest that you be comfortable that QWTR is moving ahead with its Angola plans before you make any substantial investment in its shares. I will be watching the progress of QWTR & will try to keep you informed. This editorial is short – it’s to introduce you to a possibly very hot growth potential situation.
Contact
QWTR is located at 2030 Marine Drive, Suite 302, North Vancouver, BC V7P 1V7, Canada. Call 888-897-5536, or email inquiries@questwatersolutions.com. I suggest that you also check its web site at www.questwatersolutions.com.
My comments in this column are strictly my personal opinion. At times, I will include forward-looking information as that term is defined in the Private Security Reform Act of 1995. Such information & the related company are subject to many risks & uncertainties. There can be no assurance that actual results, business conditions, business developments, losses & contingencies, local & foreign factors, & other matters will not differ materially from those suggested in any of my forward-looking statements. Such differences are the result of all sorts of factors (some examples: market conditions, competition, advances in technology, acquisitions, mergers, potential litigation, personnel changes, market changes, capital availability, etc., etc.).
Do not run out & buy a stock just because I am enthusiastic about the situation. Call the company before you buy -- satisfy yourself first. I always include a phone number for that purpose. My purpose in this column is to respond to your request for my personal opinion. You have the responsibility of making your own investment decisions. Do not give up that responsibility.
My editorial coverage has always been, is now, and always will be without charge. That includes what I write in Conservative Speculator, and what I write in "Larry Oakley's Opinion, " "Larry Oakley's Stock Pick," "Larry Oakley's Comment," & "Larry Oakley's Bold Ventures" columns. It also includes what I write in such venues as articles submitted to other publications, interviews on radio & television, and at the investment seminars and conferences at which I am a featured speaker. By doing all my editorial work free of charge, I have the advantage of writing about what companies I particularly like. There are occasions when I will write about a company that is a paying participant on WallStreetCorner -- that's because I like the company. I always make it clear to them that editorial coverage is free and is not a part of the fee they pay to have their Profile researched, prepared, & posted at WallStreetCorner.
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