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Quest Management Inc (OTCMKTS: QSMG) Remains An Uncertain Play

Quest Management Inc (OTCMKTS: QSMG) Remains An Uncertain Play
Written by
Jarrod Wesson
Published on
May 2, 2017
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Do you remember this piece, about Quest Management Inc. (OTCMKTS:QSMG)? We could not really explain why the company had been marked with the "Caveat Emptor" sign by the OTC Exchange. Well, we found out that Quest seems to be using barely legal stock promoting mails to increase investors awareness. In this article, we will tell you about these emails and also provide new analysis about the company negotiations to acquire Safety Supply Business and a Stock Purchase Agreement signed by Quest. Before we provide any new information, please have a look at the most recent share price movements:SourceThe mail received by Whitney TilsonWe could find out from Valuewalk that Whitney Tilson received a mail claiming that Quest had "found a cure for cancer". We believe that it is better that you first read the mail, so that you can form your own opinion about it:

"From: Trenton BarberSent: Thursday, April 13, 2017 2:47 AMSubject: An imminent event is sending this stock price through the roof.What if I told you that I know of a company that has actually found a cure for cancer.They have proven its efficacy in animal tests and have recently just completed their testing on humans. The results of the tests on the human subjects are not out yet, we are expecting them to become public some time in the next two to three weeks, but a friend of mine who works at the FDA told me that they are life changing. It seems that in around forty percent of cases, tumors were successfully destroyed. This number is absolutely huge!It means that more than a third of the people with cancer can be cured with this therapy. This is going to change the world, and once the announcement becomes public, it is guaranteed that their stock price will go to more than 24 to 30 bucks in a matter of hours." Source

Whitney Tilson assessed the company in his blog. He says that the company may be a good short as the company has no revenues and the company is not even in the business of curing cancer; "the distribution of fitness equipment to wholesale markets in the United States". OTC Markets may have marked the company with the "Caveat Emptor" sign due to the stock promotion that is going on now-a-days and the uncertainty surrounding what business the company is actually in.Recent DevelopmentsAs we noted in the previous article, Quest puts out interesting press releases. It has continued to do so. There are two new press releases.On April 19, 2017 the company announced that it was negotiating the acquisition of Chagrin Safety Supply. According to the press release "will serve as a beachhead entry into the business-to-business durable goods market, as part of its diversified strategy". The information is very relevant because it means that the company wants to diversify its operations, bringing products and services in different sectors. We cannot really evaluate whether the acquisition will be appreciated by the market as we need to know the price that Quest will pay. However, we obtained information from the President's profile:

"Bill Oler has more than 44 years’ experience in the Healthcare and Safety fields. Prior to founding Chagrin Safety Supply in January 1988, Bill was Vice President, Operations, University Hospitals of Cleveland, the major teaching affiliate of Case Western Reserve University. In 2013, Bill was elected to the Board of Directors of the Solon Chamber of Commerce. Four months later, he founded the Western Reserve Safety Council, a not-for-profit partnership between the Solon Chamber of Commerce and the Ohio Bureau of Workers’ Compensation, and has since served as its Steering Committee Chair to this day. Bill earned his undergraduate degree from Villanova University (BA) and his Masters’ Degree in Hospital and HealthCare Administration (MHA) from the University of Minnesota." Source

On April 27, 2017, the company noted some new information regarding the share purchase agreement between Quest Management’s President, Mr. Dmitrij Ozolins and TN3 LLC, a Wyoming limited liability company. According to the previously announced agreement, TN3 agreed to acquire 46,045,000 shares from the President. This transaction will create a change of control that was initially expected to be on April 15, 2017, but it has now been changed to May 15, 2017. As a result of this change of control, the CEO of TN3, Mr. Dan Martin, will become member of Board of Directors of Quest. Additionally, in the press release, it was noted that TN3 will bring new activities to Quest that will diversify the company.ConclusionWe found out the reason for the "Caveat Emptor" sign on QSMG: stock promotion. While we're impressed with the company's press releases, stock promotions of this nature are indeed worth noting. They usually end badly when the promo dollars run dry. We've already seen the share price collapse and that's left many investors bloodied. We believe caution is warranted and we will be monitoring the latest developments for our subscribers. We will be updating our subscribers as soon as we know more. For the latest updates on QSMG, sign up below!Disclosure: We have no position in QSMG and have not been compensated for this article.

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