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QNCQuantum eMotion Corp.Sell5.0·$2.09-3.24%
SellModerate Confidence
Investment thesis

Quantum eMotion Corp. carries extreme cash burn and value-trap signals that put quality below the engine's floor, but conservative peer-relative debt levels and a favorable modeled risk/reward ratio create asymmetric upside if the analyst-implied 68% upside is realized.

Thesis pillars

  • Quality Below Floor Value TrapDeteriorating
  • Extreme Cash Burn RateStable
  • Analyst Implied 68pct UpsideStable
  • +2 more pillars — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Quantum eMotion Corp. (QNC) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Technology · Software - Infrastructure

Sell if holding. Engine safety override at $2.09: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 6.9:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum.

Quantum eMotion Corp. engages in the development of quantum-based cryptographic solutions in Canada. It offers hardware and software products. The company provides Sentry-Q, a next generation quantum safe encryption platform, secures sensitive data across networks and... Read more

$2.09+103.3% A.UpsideScore 5.0/10#99 of 109 Software - Infrastructure
QualityF-score5 / 9FCF yield-0.40%
Stop $1.99Target $4.25(analyst − 15%)A.R:R 6.9:1
Analyst target$5.00+139.2%1 analysts
Range unavailable (1 analysts)

Sell if holding. Engine safety override at $2.09: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 6.9:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.0/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.4 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)
Mkt Cap$458M
EV/EBITDA-36.6
Profit Mgn0.0%
ROE-41.2%
Rev Growth
Beta-2.90
DividendNone
Rating analysts1

Quality Signals

Piotroski F5/9MoatNarrow

Options Flow

P/C0.17bullish
IV77%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Roe
0.0
Roa
0.0
Net Margin
0.0
Fcf Quality
0.0
Current Ratio
5.0
Piotroski F
5.6
Moat
6.2
Gross Margin
10.0
Cash-burning: FCF -8375% of revenue

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Ma Position
2.5
Rsi
3.0
Macd
3.1
Obv
10.0
Capitulation risk (RSI 18, below 200MA)Volume accumulation (rising OBV)
GatesMomentum 3.7<4.5A.R:R 6.9 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Speculative
RSI
18 · Oversold
20D MA 50D MA 200D MASupport $2.05Resistance $3.19

Price Targets

$2
$4
A.Upside+103.3%
A.R:R6.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.4 < 4.0)
! momentum at 3.7 (below the engine's 4.5 threshold)

Earnings

We could not retrieve earnings history for QNC.
The company may be recently listed, pre-revenue, or its beat/miss record wasn't available from our source this run. Earnings signals feed the Growth and Catalyst score dimensions — absence here doesn't affect other dimensions.

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is QNC stock a buy right now?

Sell if holding. Engine safety override at $2.09: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 6.9:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $1.99. Score 5.0/10, moderate confidence.

What is the QNC stock price target?

Take-profit target: $4.25 (+103.3% upside). Prior stop was $1.99. Stop-loss: $1.99.

What are the risks of investing in QNC?

Quality below floor (3.4 < 4.0).

Is QNC overvalued or undervalued?

Quantum eMotion Corp. trades at a P/E of N/A (forward N/A). TrendMatrix value score: 5.0/10. Verdict: Sell.

0
What does Quantum eMotion Corp. do?Quantum eMotion Corp. engages in the development of quantum-based cryptographic solutions in Canada. It offers hardware...

Quantum eMotion Corp. engages in the development of quantum-based cryptographic solutions in Canada. It offers hardware and software products. The company provides Sentry-Q, a next generation quantum safe encryption platform, secures sensitive data across networks and applications; eFlux-Q, a cloud based entropy distribution system, delivers quantum generated entropy on demand; eCrypto-Q, builds quantum resilient; eHot-Q, enables encryption and secure key generation for real-time digital asset protection; eShield-Q, a security layer designed for modern AI and cloud environments, safeguarding cryptographic operations; eCore-Q, an electron based QRNG provides entropy source. It serves cybersecurity, internet of things, datacenters, blockchain, and cryptocurrencies; as well as healthcare, medical device and pharma, manufacturing, finance and government, and military sectors. In addition, the company develops and commercializes healthcare applications; and US cybersecurity spaces. It has a strategic alliance with Jmem Technology for the development of quantum-resilient System-on-Chip. The company was formerly known as Quantum Numbers Corp. and changed its name to Quantum eMotion Corp. in June 2021. Quantum eMotion Corp. was incorporated in 2007 and is headquartered in Montreal, Canada.

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