To the sheep (HODLers) waiting to get slaughtered on Thursday...
Enterprise value (net of cash and debt) of Quarterhill is now worth more than these three companies combined:
1. Rekor
2. Itiris
3. Virnetx
Just wrap your head around that. Three companies combined, including two ITS growth firms and a patent licensing firm are worth less than Quarterhill.
And next years estimates for the combined firms are double the EBITDA and 50% higher revenue than Quarterhill. How can that last?
Everyone already knows the patent licensing results are going to be. That's old news.
If ITS comes in below last quarter's. Not good. If ITS is negative the stock will crash.
We've seen goodwill being written down at multiple companies that overpaid for assets last year. With the public markets valuations coming down so much, the goodwill should be written down here as well.
And if management is going to get their options priced 10 days after the quarter results, then...
"there has never been a better time [to write down goodwill for overpaying in last years psychotic overvaluation] in ITS"
Remember my warnings on
- Curaleaf
- KNR
- Canopy Growth
- Blackberry
And specifically on KNR, I said that they are pumping the stock so hard with news release after news release. Why? Because they need to sell stock. Look what they just did? Selling $10M of stock at near lows on the company with an at the market offering. They couldn't find any investor to touch the stock so now they are trying to take advantage of unsuspecting retail shareholders. This is the state of the markets.