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Quarterhill Inc T.QTRH

Alternate Symbol(s):  QTRHF | T.QTRH.DB

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.


TSX:QTRH - Post by User

Comment by Maxmoeon Oct 24, 2024 7:17am
124 Views
Post# 36279766

RE:RE:RE:RE:RE:RE:The debate is starting

RE:RE:RE:RE:RE:RE:The debate is starting
cabbieJBJ wrote: Podios, I asked QTRH about this several months back, as part of a broader discussion. This querry happened after the MSFT settlement, as that represented a change from Chuck Myers's comments on the subject as part on the Q1 call - any settlement could years away.  The amount of the MSFT settlement is confidential - end of discussion.  Interestingly, the issue did not generate any analysts' questions on the Q2 call.

I believe that I posted on the residual payments issue at the time.  Nevertheless, let me repeat my recollection.

I understand that there are several thresholds that need to be achieved to trigger the payment clauses.  The residual money was downplayed in my discussion, without specifics; as a result, my position is that it still could take several years to play out.  That said, discussions with Owlpoint are handled by CEO:CEO and there is a very small circle considered need-to-know.  QTRH would not comment on the priority sequence of payments that Owlpoint must follow under the terms of the sale.

My take: 

First, no residual payments to QTRH from the Wilan divestiture are built into the stock price, so there is only an upside surpise to consider.  QTRH is clearly outr of teh IP business.  Management very clearly signalled on the Q2 call that normal operations are expected to result in a significant increase the cash position on the balance sheet by year end.  The directional veracity of that POV should be revealed in about 2 - 3 weeks when teh Q3 results are released.

Second, as his been posted here by others, distributions to investors (of which QTRH is a 10% equity partner) from Owlpoint-type investments generally are made early in the next calendar year...January 2025.  I've checked this out and it is often the case.

Bottom line - chill.   

Bottom,bottom line. There is no inside info available to help time trading. Every new investor that stumbles upon this obscure microcap will wonder about figuring out a timeline, ask about it on every social media platform,  and drive the IR folks nuts. Koodos to them for not responding. Someday we may get a pleasant surprise, or maybe there will never be anything material beyond a few pennies. Meanwhile, the actual business is performing well. So much so, I have valid concern this will go private sooner than later, and before any of those goodies are triggered. 
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