RE:RE:RE:Canaccord or Cannacord Why do you think it is an FU?
They assume that ITS earnings increase by 50% by next year. They also value ITS at $268M when Quarterhill paid $213M for IRD and ETC combined. Why is it worth so much more than that?
That seems very generous to me. It is just fully priced here.
They are just more realistic on what WiLan is worth and highlight that there is more than $100 million of debt and other forms of debt (eg., patent finance obligations) on the balance sheet that offsets the cash.
The key statement in their report is "with Apple win now better understood, the Focus shifts to the ITS growth story".
All if the go forward valuation is now EXTREMELY sensitive to ITS growth rates and margins. This is now a growth stock priced for perfection. They need to execute or it falls hard.
Hence my analysis yesterday that if ITS earnings are flat YoY, the stock falls to $1.50.
Welcome to becoming a debt saddled growth firm when interest rates and inflation are rocketing higher.