A Quantum Opportunity

Written by GSCR Staff   
Thursday, 27 February 2014 09:34

In Monday’s Goldman Guide we mentioned that auto, oil, and healthcare stocks might be movers in this market.  Our biotech stock pick TherapeuticsMD (NYSE – TXLD) has had a nice start up over 4% already since Tuesday.

Let us shift gears, pardon the pun, to the automotive industry.  Tesla Motors (NASDAQ – TSLA - $253.00) is leading the charge this year as an automotive and technology play up nearly 70% YTD.  Automotive and related industries remain strong both in consumer sales and in the market for the most part. We would like to think that Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ – QTWW - $8.30) presents the opportunity for investors to get in on the next TSLA at the Tier I automotive supplier level. 

 

The Company has a variety of products targeted at growing sectors in the automotive industry.  First, its CNG (compressed natural gas) products are used in storage and fuel systems for heavy, medium, and light-duty trucks and passenger vehicles that utilize the growing natural gas fuel market.  Second, the Company also provides powertrain engineering, electronic control, software strategies, and system integration for hybrid and plug-in hybrid electric vehicles (PHEV).  Finally, Quantum Fuel Systems designs, develops, and manufactures advanced lightweight composite tanks and complete fuel systems for hydrogen fuel cell electric vehicle (FCEV) applications which are used in electric and other alternative engines.  These products used in automotive original equipment manufacturers, fleets, aerospace industry, military and other governmental agencies.

Our micro analysis of the stock gives a solid buy picture.  First, the technical analysis Daily Moving Average is very bullish all the way out 50 days.  Second, QTWW is in the midst of an accumulation phase over the past three months, rising over 22% in price level on nearly 700,000 shares traded per day.

QTWW is a both a solid short term play on the general capital influx into the automotive sector combined with a long term investment on new automotive technology.  Look for at least a 25% pop over the next three to four months.

 

Have a great day!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

Disclaimer:

This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. 

Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.

It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. 

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.

ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS   INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com

Add comment
  • No comments found