RE:Tacasky spoke about 7 minutes ago on Market Call. QUARTERHILL (QTRH TSX):
Quarterhill is one of the world’s leading ITS providers. It is a leader in electronic tolling for highways in the U.S. and a global leader in traffic enforcement, data collection, and weight-in-motion technology. It has a backlog of $500 million and a large pipeline of potential projects as governments are looking to install more technology on roads to collect more revenues from drivers to help pay for transportation infrastructure. Also, QTRH is gradually becoming a technology company and has developed AI tools to monetize the huge amount of data it collects to enhance road safety, traffic management, and vehicle tracking.
It has also strengthened its board of directors and new management who have been buying a lot of stock over the past year. The shares have been weak recently due to some low-margin projects that are still in the implementation phase, but results are expected to significantly improve over the next few quarters as higher-margin recurring revenue kicks in. We expect the shares to go back over $2 by year-end, with an eventual take-out in the $3 to $4 within a couple of years as the industry consolidates.
Owned personally, by family and in fund