RE:Show me stock Now you get it Joey.
The frame of reference for this Board is from the era post the dot come blow up. So they define success as WiLan didn't go bankrupt at that point in time.
This is the shadow that Skippen has over the Board and organization. It is what justifies the huge dilution and excessive compensation that has been generated since that time.
An analyst that covers WiLan I spoke with said it best. The way to value WiLan is a bit like an oil company. They have an asset with a limited time horizon. And they have to spend capital to drill new wells.
All the wells are empty as the Crown Jewels expired. And instead of buying new wells (patents) they put all the capital into ITS. There is only the chaff left.
Now they are trying to sell the process and people around WiLan. There is no way they are going to sell it at 3X the value of blackberry on a per patent basis.
They have spent $210M on two ITS firms. Cannacord values them at $260M. Why is it worth so much more? What value have they added since then? I guess they have some bike sensors in Europe now?
So this is what Cannacord has said. They are giving a 20% return on the ITS investments assuming they grow at 50% this year. And WiLan is sold for 3X the price per patent vs blackberry. That is the $2.50 price.
The downside is 0 growth in ITS ($16M per year EBITDA) and WiLan is sold for the same price as BlackBerry. That is $1.10 / share.
Q1 will be telling on the ITS growth rate.