RE:Astutein gets it!BNN expanded comments .
QUARTERHILL (QTRH TSX) Quarterhill was formerly called Wilan, which was an IP patent licensing company. The patent portfolio continues to throw off lots of cash, which the company is using to acquire companies in the Intelligent Transportation Systems (ITS) sector.
It just bought ETC, a cloud-based road tolling software provider with a 17 per cent market share of toll lanes in the U.S. It also owns International Road Dynamics, a world leader in weight-in-motion technology, traffic data collection, sensors and imaging.
This is a global growth industry that will benefit from massive infrastructure spending as governments seek additional sources of revenue. Quarterhill is currently bidding on over $4 billion worth of contracts. If you do a sum of the parts analysis, the IP portfolio is worth around $2 per share, while the Intelligent Transportation segment is worth around $3.50 per share. In addition, there’s also a large amount due from Apple for patent infringement that was awarded to Wilan by a jury that could be worth up to another $1 per share, for a total of $6.50 per share versus its current trading price of $2.50. The company has been aggressively buying back shares and the CEO bought a large amount as well.