Quarterhill Inc T.QTRH

Was the EZ-Pass I/O Hub contract priced at a loss?

[cabbieJBJ]

It is clear that it was priced as a business investment.  While inital margins were keep thin, I don't believe it was priced at a loss.

With the USA moving to a national I/O hub strategy for user pay transportation, QTRH/ETC will operate two of the three hubs - all hub activity east of the Rockies.  That places QTRH/ETC to be the defactor national Hub Operator and reap the benefits from that position. 

Look to the eastern seaboard/northeast for significant business gains in the next 1-3 years.  ETC's technology super impressed the selection group on the NYC congestion pricing initiative but were not in a position ot take on a project of that size at that time.  We know from docs that ETC received the highest rating on technology, amongst other criteria where they were highest ranked, on the EZ-Pass Hub award.  Keep an eye on Pennsylvania and New York.

Also, keep an eye out for B2C and B2B initiatives that can leverage the Hub's technology and infrastructure.  QTRH's management and BoD have bulked up on fintech expertise; that's not a coincidence imo.

[v_guerriero]

It is very simple.   The markets are punishing firms that aren't making money. ITS and IP units are not making money.  You may believe the turnaround story.  I don't see how this happens in an inflationary environment. A leveraged acquisition model doesn't make sense at these interest rates.  Rekor's acquisition of STS highlights how punishing markets are

[mrmoribund]

VG, though I have problems with most of your posts, I'd say that your post here is a reasonable expression of what you could call the sceptic's way of looking at Quarterhill.

[v_guerriero]

Thanks.   And I would say only about 25% of my skepticism is priced in.   I will admit there isn't a lot of upside built in either.  The issue with Quarterhill is it always goes down to a level where you want to vomit.   We aren't even close to that level yet.