RE:RE:RE:Quarterhill 1st quarter results to be released on May 12Margins are always important but I wouldn't see them as the key issue. ETC is in a battle for tech and reputation supremacy in tolling. I would rather they give up a little (not everything, but a little) in terms of margin (especially in the ramp-up phase) as part of establishing themselves as the top-quality tech tolling / ITS name.
When you look at it in that light the win of the EZ Pass IO hub contract is a fantastic thing. And yet the stock has gotten no credit from the market. Thanks to Canaccord and the assorted dumpers, I guess.
We see the financial statements and press releases and so forth. But what we don't see or hear is what's happening in the actual communications between ETC / IRD and their prospective customers. We get a window on that when Bret tells us that there's never been a better time to be in ITS. But that is the kind of thing where there's no proof. And if people want to not believe him or not hear him then I guess that's their right.
ST Engineering paid 20x for TransCore (US$2.6 billion) what Quarterhill paid for ETC (C$150 million). If ETC / IRD establishes itself as a better-than-or-as-good-as-anyone name in ITS--and it seems to be making great progress--then it will soon enough be seen by the market to be worth a great deal more than 1/20th of the value of TransCore.
Here's a bit of wild speculation. 100% my own. Why would a company, in the 11th hour, change its reporting day from a Tuesday to a Monday. Maybe because somebody has a dentist appointment? Hmm, I doubt it. One reason might be because someone's lawyers and accountants are going to be going over the books all weekend and you don't want those people walking around on Monday with inside knowledge and the quarter not out yet. As I say, just my own guess. Might be nothing to it.
Regardless, ST Engineering will not be the only big name looking to outflank its competition in ITS by buying quality. I would not be surprised if, in a real (but early) sense, Quarterhill is already in play.
If people want to go with v_g and his moaning-and-growning negative account of Quarterhill and the rest of the ITS world I guess they can. I admit it's the kind of investment situation where it arguably comes down to gut feel. And if all you're going to look at is the Q4 numbers and the stock prices then, yeah, I can see where v_g may be getting an audience.