QEC is a very small oil and gas company with market cap at $94.27M. QEC had a flat year in terms of price in 2023 but did display some volatility. Both revenues and net income margins had negative growth in Q3. The balance sheet looks good with essentially no debt and a net cash balance of $34.8M. Quarterly cash from operations is a small positive and has not dipslayed too much volatility over time. Price-to-book valuation looks decent at 0.6x but trailing price-to-sales and price-to-earnings are expensive. We think QEC is risky due to its size, while upside will be limited and volatile to the underlying value of the commodities the business is tied to. There was no company-specific news to account for the move on Friday, and in fact QEC has not issued a press release since early November.
5i Research Answer: