Quarterhill Inc T.QTRH

Bull Thesis?

[ngtraderng]

What's the bull thesis here? Quarterhill seems like a rudderless company without any direction.

[mrmoribund]

There is absolutely a bull thesis but it's taking longer to unfold than people would like. The central thing is getting these tolling projects past the implementation phase and thereby producing a more solid level of cash flow. The company probably also has to get better at handling scale in doing these implementations. One could legitimately ask what will happen when, yes, they get past the

[cabbieJBJ]

I agree with you mrmoribund that there is a bull case scenario and that it is taking longer to unfold.      Over the next 2 - 3 years, growth opportunities will be hard to find.  QTRH could be one of them.  On the M&A side, it appears that the focus will be more on building scale.  There are a few comments in the transcript that lead me to this conclusion

[Socrates1]

I aggree, The chart is ready, not much room left to slide! Opportunistic buying frenzi Friday was good to see and watch for more of the same! Anyone holding till now and selling for future gains is loco,,, We are Very oversold and if you remember the principles of stock pricing we are exactly BANG ON! Lowest sentiment, lowest share price and maximum opportunity on the forward looking price model!

[Joey67]

This post has been removed in accordance with Community Policy

[Socrates1]

You have to add why joey and not just a knee jerk reaction answer....... Didn't the patent rules change?? Is that effected us??? Did mgmt look to diversify? Did they? Looked at new CEO'S? Did they? Armchair critics without understanding the whole bowl of enchalada........ From a 100% Patent business a few years ago that would have you looking at a $.50 -.80 TODAY with no long term growth

[cabbieJBJ]

Socrates, your comments carry weight.  It is important for QTRH investors to remember that Paul Hill guided 15% EBITDA, or greater, from the day the ETC acquisition was announced until his departure.  This was the experience at ETC pre acquisition.  Post acquisition, management continues to guide 10% to 15% on the implementation phase (reflecting inflation/labor/supply change

[Capharnaum]

My main concern is that the aggressive bids are done at low EBITDA margins.

[cabbieJBJ]

Capharnaum, I think it is fair to say that most QTRH investors are still getting to understand the ITS business, aprticularily ETC, as it differs night/day from the patent business.  Most of the contracts ETC has been awarded have three phases, with differing margins: Implementation - management guides 10% - 15% margin.  The implementation window is typically 18 - 30

[v_guerriero]

The only bull thesis here is they are able to get something for WiLan (at least $20 million) and shut down the corporate structure and fire 30-40% of staff while also growing revenues by 20%+ year.  That would close the cash flow shortfall.  I've heard of people that chipped in for eagle and then on the next par 3 nailed a hole in one.   That's what's at play here.