Kelso Technologies Inc (KIQ) research, news, and more from GeoInvesting

Company description

Fri, 15 Feb 2019 14:42:35 GMT

Kelso Technologies Inc. is a railway equipment supplier that produces and sells tank car service equipment used for the safe loading, unloading and containment of hazardous materials during transport. The Company designs, engineers, markets, produces and distributes various pressure relief valves and manway securement systems designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars. It offers approximately 60 products, which include a series of over 47 types of externally mounted constant force spring pressure relief valve for pressure management; over four types of Kelso Klinchers; approximately four types of bottom outlet valves; over four types of vacuum relief valves and approximately one Eduction Technology eduction tube product that address the technical requirements of load and unload operations and the containment of hazardous commodities during transport.

Research

Mon, 13 May 2019 15:42:08 GMT

Kelso Technologies Inc.(NYSE:KIQ) ($1.26; $60.0M market cap), a railroad equipment supplier that produces and sells tank car service equipment used in the loading, unloading, and containment of hazardous materials during transport in the United States and Canada, announced Q1 2019 results:

Sales of $5.6 million vs $2.5 million in the prior year
EPS of $0.02 vs a loss of $0.01 in the prior year

Throughout early 2019 Kelso continues to take successful measures to improve positive cash flows from operations. We began to see the correction of several years of weak financial performance in late 2018 and the turnaround of sales momentum was very apparent in the first quarter of 2019. The uptrend in capital spending in the rail and truck hazmat marketplace fuels our positive outlook for 2019 and 2020.

Over the past several years our strategic plan has been focused on re-branding Kelso as a reliable American made supplier of high-quality performance equipment for the rail tank car industry. This was an imperative strategic goal as management believed that it was essential to achieve a healthy turnaround of our future financial performance...

...The Company currently operates without the need for immediate access to new equity capital or new credit facilities. The Company's goal is avoid dilutive equity funding activities and to remain free of interest-bearing long-term debt.

Throughout the sector slowdown of the last three years, we have been able to stabilize Kelso with new business processes, new personnel, dramatic changes to our corporate culture and the successful introduction of a more effective and economic approach to customer service, marketing and sales. In 2019, business momentum appears to be growing and we maintain a steady growth outlook for 2019 and 2020. Our key objectives are to achieve balanced growth of profitability through revenue streams from a more diverse portfolio of products. This business model is expected to generate the necessary internal capital resources and financial performance results that will eventually lead to an improved valuation of our business activities for all stakeholders.

On February 15, 2019, we mentioned that the company was in the midst of a turnaround plan and on March 21, 2019, we highlighted the company’s strong full year 2018 results.

Even though the stock has risen 80% from our initial note, we are intrigued by the near to mid-term prospects for the company. We will step up our efforts to attempt to interview management. Unfortunately we did not add the stock to any of our model portfolios.

Research

Fri, 05 Apr 2019 17:21:20 GMT

Kelso Technologies Inc.(NYSE:KIQ) ($0.90; $41.9M market cap) is a railroad equipment supplier that produces and sells tank car service equipment used in the loading, unloading, and containment of hazardous materials during transport in the United States and Canada. On February 15, 2019, we mentioned that the company was in the midst of a turnaround plan. On March 21, 2019, the company announced full year 2018 results:

Sales of $12.7 million vs $6.0 million in the prior year
EPS of $0.00 vs a loss of $0.11 in the prior year
Q4 Sales of $4.2 million vs $1.9 million in the prior year
EPS of $0.00 vs a loss of $0.05 in the prior year

“Throughout 2018 the Company’s dedicated stakeholders including new motivated customers actively pulled together to improve Kelso’s commercial business capabilities. These initiatives provided the necessary resources to ensure the Company’s survival during difficult recessionary times in 2017. These efforts directly impacted the Company’s improved financial performance in 2018 and fuel the Company’s positive outlook for the foreseeable future…

...Although many operational and human resource expenses have been reduced and the Company’s capital management remains challenging, recent improvements in cash flows from sales growth in 2018 and early 2019 have been more than adequate to fund Kelso’s ongoing business activities. The Company currently operates without the need for immediate access to new equity capital or debt and the Company remains free of interest-bearing long-term debt...

...the Company has implemented new business processes, new personnel, changes to Kelso’s corporate culture and introduced a more effective approach to customer service, marketing and sales. In 2018 the results were encouraging with growth in sales, profitability and overall working capital position. In 2019 business momentum appears to be growing and the Company maintains a strong growth outlook for 2019 and 2020. The key objectives of Kelso’s strategic plans are to achieve a more balanced growth of profitability from diverse revenue streams, stronger financial performance and improved valuation of the Company’s business activities.”

Research

Fri, 15 Feb 2019 14:46:14 GMT

Kelso Technologies Inc.(NYSE:KIQ) ($0.69; $31.6M market cap) - We intend to set up an interview with KIQ, a railroad equipment supplier, that produces and sells tank car service equipment used in the loading, unloading, and containment of hazardous materials during transport in the United States and Canada. The stock has been inching up to recent highs the past few months as the company continues to execute its strategic turnaround plan. A conversation with management will hopefully help us understand what key drivers of the plan are accounting for the stock’s move upward.