Post by
whaler83 on Nov 05, 2020 6:54am
$50 m Drop in Cash
Can anyone explain the $50 m drop in cash? Specifically what does it mean "working capital adjustments"? Cash, cash equivalents, and short-term investments were $129.7 million at September 30, 2020. Cash and equivalents declined in Q3 due primarily to working capital adjustments and the timing of collections for certain license agreements completed near quarter-end. Payment on these agreements was received subsequent to quarter-end
Comment by
v_guerriero on Nov 05, 2020 7:29am
Cash is at 129.7M Accounts receivable is 72 Million... so should expect another 70m of cash to come in. It sounds like that came subsequent to quarter end. looks like cash balance could be over 200m next qtr.
Comment by
Mazz45 on Nov 05, 2020 9:03am
That's exactly what is it. They had not collected the settlement in Sept 30th hence the 72M accounts receivables. There is also a statement in there that says they have 188M in working capital, so likely lower than 200M due to the share buybacks as part of NCIB. That is close to $1.60 per share in CASH.
Comment by
blackspade799 on Nov 05, 2020 9:26am
So .90 value for IRD and WIN. So around $50Mil value for each company. Even with a flat Q4 QTRH should be $3.50-$4 all day long. The sp does not reflect the true value, extremely undervalued at current levels. Let's see what the CEO has to add this morning.
Comment by
cabbieJBJ on Nov 05, 2020 9:58am
Blackspade, ITS net profit was $4.488M or EPS of $0.04/share. Annualized, that's 0.16, if Q3 can be straight lined. At a 11x EPS, ITS represents $1.75/share. Cash is $1.60/ share. Give Wilan zero, which is absurd, and QTRH is $3.35. So, YES, QTRH is very, very undervalued.