Post by
mrmoribund on Jul 21, 2021 12:27pm
Sagging stock price
It's interesting to speculate as to why the stock is so lackluster right now. Yes, Justhalffull, I already know what your answer is.
On one hand, it may be more of the lack of enthusiasm hanging around Wilan from the old days. As I've argued in the past, this will, by and large, only be dispelled by the production of a sit-up-and-take-notice quarter, especially one on the IRD side (and not by meeting with investment professionals or paying for Wall Street / Bay Street exposure).
Alternatively, it may be that, as we approach the Q2 release, some negative information is leaking out. It's difficult for any company to prevent all forms of leakage of what may be, technically, inside information. Some IRD employee is having a barbeque, they get talking about how the ITS business is going these days, etc. It happens.
With Wilan I'd think it's pretty easy for management to keep a tight lid on that sort of thing because the essential information should be only in the hands of a select few employees plus the lawyers.
With IRD? It may be that a soft quarter is coming and the stock price is giving us a hint of it.
We'll find out in a couple of weeks. Last year they released Q2 results on August 6. In 2019 it was August 8.
It's possible the market is anticipating a larger (than so far in 2021) acquisition at an on-the-high-side price. That's a real wild card because there's no knowing how the market would react to that.
Comment by
whaler83 on Jul 21, 2021 2:57pm
Apple decision will change everything. A major aquisition in the ITS will change everything. other major settlements or licenses will change everything. Thats the thesis for this investment.