Quarterhill Inc T.QTRH

v-g wrong again as usual--- FABRICATOR

[astutein]

v-G STATES TODAY " Silly cabbie,they don't have a billion lying around.

Market Cap is for numerous operating divisions and fulL operation.

Sale of transportation unit (per Cabbie) represents approx 18% .

 

V_G   Stop fabgricating and getting facts to suit your views.

 

V-G  WRONG AGAIN, WRONG .

[v_guerriero]

Needham says "assuming a mid-teens EV/LTM EBITDA multiple, we believe the transportation business could be worth $900M-$1.2B on a standalone pre-tax basis" "CDNT is trading at a pro forma (assumes transport business is sold for $1 Billion pre-tax and reflects the impact of the from the announced Midas divestiture) EV/FY22 EBITDA multiple of 5x" They attach a Hold rating

[cabbieJBJ]

This will surprise you VG, but I agree that a $1.0B - $1.2B valuation is possible, on the surface.  That's 10X to 12X reported 2021 EBITDA.  But there are lots of questions about the strength and focus of the segment at Conduent and the need for technology investment to bring it into the technology driven tolling world.  However, it would be worth QTRH's while to look under

[v_guerriero]

Nice to see you agree. You agree big road ITs business at scale is 10-12X EBITDA. Based on the weak ITS finish in Q4, it appears Quarterhill paid 20+X 2021 EBITDA for ETC.  And they will be lucky if it is 16-18X 2022 EBITDA. The transition to ITS will be very expensive and time consuming.  They also clearly don't have the skills to compete against players like Conduent

[buckon]

based on your strong endorsement of the its sector, conduent may be had, by someone, for $500M to $600M, maybe less. so, your analyst friends at needham figure conduent transportion sector may fetch $900M - $1.2B via its strategic review.  one thingy veeegeee: conduent transportation is worth ~18% of conduent sales and 75% - 100% of conduent's current market cap ($1.21B) and they're

[v_guerriero]

ITS companies have a common trait - that they are loaded with debt.  Conduent has lots.  Don't you know how tinted a balance sheet? The more consistent earnings stream means they can afford more debt which means multiples went up.  Now the reverse happens as the debt becomes more expensive to carry and they can carry less debt and the multiples retract. ITS is a very