Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Quantum Fuel Systems Technologies Worldwide Inc. Shares Popped Today

By Travis Hoium - Mar 11, 2014 at 4:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quantum Fuel Systems Technologies Worldwide ( QTWWQ ) jumped as much as 10% in early trading before giving back all of that gain to end the day slightly in the red.

So what: Quantum today announced a new $5.3 million order for large-diameter Q-Lite CNG storage tanks that could exceed $6 million if add-on features are included. Management said this shows momentum in the company's products being used in the conversion of Class 8 trucks to compressed natural gas.  

Now what: This is a decent order, but a lot more is needed for a company with just $31.9 million in revenue last year and a $23 million loss. Quantum needs to see orders of this size come through regularly and consistent growth in revenue to be a buy. After the initial stock jump it looks like the market saw that this wasn't a game changer later in the day. Keep an eye on the company's progress, because it's playing in promising growth markets, but I don't think this deal changes the investment thesis today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

QF Liquidation, Inc. Stock Quote
QF Liquidation, Inc.
QTWWQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
652%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.