Quarterhill Inc T.QTRH

A very basic question

[v_guerriero]

If the stock was so cheap and people should "load up" at these levels, then pray tell why is there no NCIB?  

Why did they pursue a substantial issuer bid 2 years ago at $2.15, but are not doing so at these levels.

There is obviously something wrong and they need to keep the cash available.  

Or could it be that it is a better return to pay down debt at 7.45% or buy back debentures to a yield to maturity of 10%?  

So if debt is better return than the stock, why should anyone buy the common stock at these levels?  If management isn't buying the stock, why should anyone else?  

The issue is that cash is very expensive at the moment and the cost of debt financing would be astronomical here.  They have a cash flow problem and they need to preserve liquidity.  

The only hope here on the common stock is a WiLan miracle sale, that is above the current market expectations of $60-$100M.  That's it.

[mrmoribund]

There are lots of reasons why a management might choose not to do an NCIB even if they think the stock is cheap. First, one might have concerns about the stock market itself. If the market drops 20% then even I will happily admit that QTRH will probably drop somewhat also. Second, fundamental cheapness does not necessarily mean you're loaded with cash flow at that exact moment. I'm with

[v_guerriero]

Well here is some basic math.   Cannacord's model produces a target of $1.69 by the end of 2023.  That is a lower return than the debentures provide over the same time period.   And is a 9% return sufficient with the lack of cash flow and significant debt and a massive overhang risk of management able to issue almost 80 million common shares with the base shelf offering in