RE:V-G $ 1 to 1.20 -Zero for ETC & IRD- Crisis mode form V-G Welcome to your summer of whine and $1.29.
Quarterhill paid $215 million for ITS assets that the previous owners paid $100M for. They would not fetch $215M right now.
WiLan is at best worth $50M. At worst it is worth shutting it down and reducing the run rate expenses and facilitate eliminating the bloated corporate Center costs.
The bloated corporate Center is worth -$100M. You don't need to pay for that by owning Rekor or ITI. So it has to be discounted in the valuation. That is a $10M annual expense that destroys value.
The debt on the balance sheet offsets most of the cash post Apple. There is only $30M net cash. And that cash needs to pay for the Sharp and Vizio losses... so maybe $15M when all is said and done.
That's how I get to my $1.29 target. Todd Coupland's downside case is $1.20.