Quarterhill Inc T.QTRH

YTD - TSX index down (11.0%)/QTRH down (38.0%)

[v_guerriero]

September
TSX (4.6%)
QTRH (12.0%)
2.6X 

Year to Date
TSX (11.0%)
QTRH (38.0%)
3.5X

One Year
TSX (6.3%)
QTRH (40.5%)
6.4X

On every time frame QTRH is going down much faster than the index.  

The pivot to ITS has increased the riskiness of the business model and the linkage to the overall business cycle.  And that risk is now also further magnified through the debt on the balance sheet.  

How?  
1.  Wages:  They've gone from 50 employees to 550 employees.  More wage inflation exposure.  

2.  Inputs:  They've gone from patents to parts, sourcing chips and other parts into sensors.  More commodity pricing exposure

3.  Energy:  From storing patents on paper to storing billions of tolling transactions in the cloud, which require energy to run.  Cloud storage prices increasing 50% this year.  Gas prices crowd out ability to add tolls.  More energy inflation exposure.

A very different business model.  And very different risks.

[Joey67]

This post has been removed in accordance with Community Policy

[v_guerriero]

At least we aren't negative today! Market is up everywhere, the REKR/VHC pair trade is up 10% in a day.  Whoa mama! The only negative on my screen is this PoS. The old maxim in trading:  Embrace relative strength.  Fear relative weakness.

[cabbieJBJ]

Joey, we are entitled to be disappointed as we are entitled to not care for weegee's help.

[v_guerriero]

Does Investor Relations return your emails or calls anymore?

[cabbieJBJ]

ALWAYS...let's guess why they may not return yours weegee.

[v_guerriero]

Can you ask them why they have not pulled the $150 million remaining base shelf offering?  It is a huge overhang and I won't touch the stock with it there.  They can double the share count at these prices and is a significant risk to shareholders that they can issue stock without any shareholder approval. And why would you care about shareholder approval when you don't own any