Quarterhill Inc T.QTRH

M partners and RayJay get it…

[v_guerriero]

Both highlight as I said earlier today:
- WiLan worth $2/share
- Eliminating corporate parent worth $1/share (complete elimination in run rate benefits by 2023).
 

Believe pure play is very attractive.  Highlight that QTRH will be the fastest growing ITS company in the market next year.  ITS segment Should trade at a premium 15X multiple vs 9X today.  

Will revisit targets when complete sale of WiLan.

[whaler83]

i'd be happy with $2/share for wilan. its more than i;ve paid for my shares so i essentially get the whole ITS business for free.

[Windsor123]

Maybe give us a special dividend if it goes for $2.

[v_guerriero]

Both view the market value WiLan at 0.   Therefore, Any sale price above $0 would be positive. And the elimination of the corporate parent would add $10M x 15X multiple to ITS... $150M  

[cabbieJBJ]

v_g, I assume the RJ/MP statements mean that Wilan is worth $2/share is when divested.  That suggests an Apple settlement in the CAD $150M range, which is approximately the current USD $109M on the table from the jury award.  I am hopeful it could be higher when ALL infringing units are brought into the calculation.  But, in the end, it will be what it will be!

[v_guerriero]

They basically get to the same number that Stephen T.  got to.  Add $3 to the stock price from eliminating the corporate parent ($1) and selling WiLan ($2). They also implied that there is upside to this as ITS should be trading at a 15X multiple.   Take a look at Dorel Industries for inspiration.  The market did not anticipate they could get much for their bicycle

[cabbieJBJ]

v_g, please tell us more about Dorel. I see they got about USD $800M, but I have no idea what the market thought they would get. What factors led to the higher sale price. Are there parallels to Wilan? TIA

[byloselhir]

Funny how it is ok to discuss OTHER stocks when YOU want to but not when someone else tries to help another member

[cabbieJBJ]

byloselhir, if you mean ME by YOU, I'll remind you that the request regarding Dorel related to the premium received versus market expectations and how that might relate to a sale of Wilan. Regarding your question of the potential amount per share that might be realized in a Wilan sale, I have two data points for you.  Raymond James and M Partners value the Wilan business at ~$2 per share

[wilander]

If we are offered a price equal to $2 a share for Wilan take it and RUN! If you want to become a force in ITS, then take that money and do something it. Might even make me wanna stay around after Apple.

[whaler83]

you never know. if there are some key patents that someone doesnt want others to own, it could drive the price up. it will be really interesting to watch this unfold. i hope we are all presently surprised with the price we get for Wilan.

[cabbieJBJ]

Wilander, you have consistently claimed you were only back in QTRH for the Apple settlement and were then off to other (maybe greener) pastures.  Why are you now conflicted and preapred to stay?  Please share a little detail on your thinking.  TIA. 

[wilander]

Because I see the removal of plodding Hill as excellent.  Not the right guy. Whether Bay street likes him or not. Because I see the new CEO as someone who really knows our area of ITS and can build from experience. Because if Wilan is sold, I expect the far too controlling deadwood on the board will leave or be removed. And replaced with more who understand ITS and the plan forward. And I

[cabbieJBJ]

You're not a bad guy Wilander.  I've never thought that.  Irritating from time to time, but who isn't.  Thanks for sharing your thinking. I share all your points except on Paul Hill.  I think he has been an outstanding contributor to QTRH; but, I'm not his agent so I'll keep my thoughts to myself, although I am prepared to share with you in a PM if you are

[whaler83]

Cabbie, im alwasy intersted in hearing your thoughts. Feel free to share with the board.

[whaler83]

If that $2/share includes the Apple settlement than that would mean Wilan was bought for a song and dance.