RE:Thoughts on Q4 & January Interesting post.
The BIG takeaway is this Board of Directors finally gets it. There was never a chance at a moon shot with a patent troll business attached to this company. Patent assertion businesses are not liked by investors.
A pure play ITS business with leading market positions in rolling and commercial vehicle enforcement - and huge industry tailwinds behind it - will be something new investors can get excited about.
I also don't believe that they would have launched this review without three things being in place:
1. ETC has actually won those three big contracts and the BoD has huge confidence in the financial projections of the pipeline and future earnings
2. They believe they can get a deal / settlement with Apple. I do not believe you can get a reasonable price for WiLan without Apple settling. Apple will not settle for cash and then provide the cash to buy more patents and have multiple new rounds of litigation against it. They want WiLan eliminated. An Apple settlement now has a manifold impact as it will provide immediate cash, but greatly increase the odds of selling WiLan.
3. I believe Quarterhill has already been approached to sell WiLan. You don't launch a major change with the CEO out and major change without confidence in completing the transaction. There is no way that the Chair would launch a second review without knowing it can be successful.
Lastly, I believe this is all happening as they want the cash to pursue another platform acquisition before ITS companies get even more expensive. And they will.
You don't need to make too many assumptions for them to triple ITS earnings to $100M. It is very possible. And with the WiLan anchor eliminated, the value of the earnings and the company, will be MUCH higher.
2022 is our liftoff year. 800k+ shares holding strong. I am riding this position into 8 figures.
Be well and happy holidays!