The market celebrated the change in the business model of Qualibou Energy, Inc. (QALB) by pushing the share price from $0.5 to more than $2.5. The demand for the stock appears to be increasing as well. Notice that in the last ten days, the total stock volume was larger than 2 million shares. It seems to be the correct time to talk about this name.
See the most recent share price dynamics before we provide additional information on the company’s new venture:
Source: Bigcharts
WHAT’S EXCITING THE MARKET?
On October 22, 2019, the management reported that QALB is transitioning into a security solutions and risk management services company. The company now provides custom security solutions to corporations and governments. Read about some of the services in the lines below:
“Services offered include: risk assessment, training, crisis management, protection, support and intelligence. Client contracts range from hourly to yearly depending on the type of service being provided. CPSI can fulfill any client contract by utilizing a network of specialized consultants drawn from a database of former: US Navy Seals, Special Forces, Marine Corps, Naval Operations Special Units, FBI and CIA Field Agents.” Source: Press Release
The company is now targeting a different market that seems to be quite large. According to Research Nester, the global market for security solutions is expected to grow from $23 billion in 2017 to $50 billion by the end of 2027. An increase in the company’s market opportunity could explain why the share price spiked up.
On October 23, 2019, the company appointed a new management team. A new CEO, a new President and a new CFO were presented to the market. The new business executives bring outstanding expertise in business, insurance company regulatory work, policy enforcement, and budget forecasting. In our view, the most remarkable business profile was that of the President, George Rock Rutherford. He brings expertise of working in the US Navy and the Naval Special Operations Units, which the market will appreciate:
“He is an international trade and business consultant specializing in the Asian and Mid-Eastern markets. Mr. Rutherford served with the US Navy from 1962 to 1970 with the Naval Special Operations Units. From 1993 to 2001. Mr. Rutherford was the Chief Executive Officer and Managing Director of CPR Ltd. and was responsible for all of its security, mining and commodities operations in Asia and East Africa.” Source: New Team
LOW FLOAT RUNNER
With 17.32 million shares outstanding and a float of only 0.86 million, Qualibou Energy, Inc. will most likely exhibit a significant amount of share price volatility. Volatility may be perceived as a risk. However, there are market participants with outstanding experience of assessing volatility plays. Here is a new name to be followed carefully.
BOTTOM LINE
Currently trading with a market capitalization of more than $30 million, Qualibou Energy, Inc. (OTCMKTS: QALB) has obtained a significant amount of market recognition very recently. The change in the business model and the announcement of the new team were enough to create a significant market reaction. We will be studying the company’s new press releases very closely. If QALB announces additional details about its business strategy, the share price could creep up even more.
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Disclosure: We hold no position in Qualibou Energy, Inc. (QALB) either long or short, and we have not been compensated for this article.
