RE:Bull Thesis?There is absolutely a bull thesis but it's taking longer to unfold than people would like. The central thing is getting these tolling projects past the implementation phase and thereby producing a more solid level of cash flow.
The company probably also has to get better at handling scale in doing these implementations. One could legitimately ask what will happen when, yes, they get past the current implementations and the cash flow picture for those projects improves BUT by then they have a bunch of new projects that will have their own implementation challenges.
I've suggested before that Quarterhill ITS is in an interesting position in that it's quite unclear as to whether it's more logical for:
(a) it to be a buyer of other (presumably smaller) ITS companies or
(b) some other (presumably bigger) ITS (or related) company to be a buyer of it.
The company's current troubles do seem to be pushing the needle toward (b). I'm wondering myself these days if maybe this big project tolling stuff should really be done by companies that have sales in the billions. Conceivably that would be the view of ST Engineering--which bought TransCore in 2021 (and has sales in the billions of dollars).
Just look at the price ST Engineering paid for TransCore and you can see the potential.
And that could be your bull thesis. That Quarterhill, sometime in the next 2-3 years, will be sold. And for a price vastly higher than the current $1.55.
But in the meantime the company has to move forward in the sense of stabilizing results and growing further. I happen to think they'll get there.