View The recently announced contract isn’t a game-changer, and the share price reflects that. What really matters is whether the company can generate profit from it, which remains uncertain.
One concern is the potential for another quarter with a sharp drop in cash balance, justified by the "implementation stage" or followed by "cost overruns." With cash at its lowest point, the profitability of these contracts is still in question.
On the brighter side, Rusty Lewis’s actions are encouraging. If he didn’t believe in the company’s direction, he wouldn’t be buying shares or staying on the board. This signals confidence in Quarterhill’s prospects.
The sale of TransCore at ~20x EBITDA also highlights the potential value in this space. If Quarterhill can deliver consistent results, it could become an attractive acquisition target. However, given its history, it may need more than just a few strong quarters to build credibility.
Daily share price movements don’t matter much. What’s critical is proving sustained positive cash flow and improving margins over time. Success on that front will naturally draw interest from investors and possibly larger companies.