Quarterhill Inc T.QTRH

gatekeeper systems

[matt2018]

New year, maybe some new opportunities?  Gatekeeper (GSI) making some moves. 
Would be a nice fit.  They are profitable, growing, no debt, can use that low QTRH share count to get a deal done.
I am equal weight on both names, so i'm biased.

[cabbieJBJ]

Didn't Myers say the goal for QTRH is to be one of the big ITS players - and he said there is only room for a few in the tolling space.  I've also heard rail dropped a few times. Gatekeeper doesn't fit the profile. Think Conduent Transportation.  Conduent Transportation provides tolling and rail transit and is for sale.  It definitely fits the profile needed to get to

[Homework]

Cabbie........ a little birdie is telling me that Qtrh may be sold in 2024. I believe if they secure a couple of more contracts on the ETC side they will get bought out by ..........ST Engineering ( 10 billion market cap ) The company who purchased Tanscore??? This would be a more plausible outcome then a Qtrh acquisition??  very interesting times for QTRH.....  Homework has been done

[cabbieJBJ]

Could be a head fake, but QTRH being acquired flies in the face of signals from management. I'm thinking more merger than acquisition actually. Time will tell, but it looking like a success year.  Apropos ST Engineering, QTRH would seem to be duplication after its acquisition of Transcore. What makes you think they have eyes on a second tolling acquisition?

[Homework]

I believe they want market dominance in the U.S.  The USA has to spend big time on infrastructure over the next 10 years. They are way behind countries like China, Singapore, united Emirates etc.  All part of the new smart grid . Large tax revenues will need to be collected.  They will have the scale to out bid others.  Qtrh will have a tough time on their own or a

[cabbieJBJ]

Homework, I've often thought about the role of IRD/QTRH - Europe/International, in light of the focus on USA.  In addition, a focus on tolling raises the question of the place for IRD in the strategy.  It's unfortunate that investors will need to wait until the Q4 results call lfor a presentation on the go forward strategy.

[matt2018]

not so sure IRD going anywhere.  It's winning contracts and Wilan paid over $60M for it over 5 years ago.  What exactly is their share of the revenue?  Recall when they purchased it, had yearly revenues over $60M.

[DIYGuy]

Thanks Matt. Here is the info from the press release  Financial Highlights of the Acquisition IRD generated $65.4 million in revenue in fiscal 2016 with $4.9 million in earnings before interest, taxes, depreciation and amortization (“EBITDA”), $2.8 million in net income and $2.3 million of cash from operations. 

[matt2018]

Wow, its been 7 years now.  Seemed like a fair deal at the time.  Not sure what it would be worth today.

[cabbieJBJ]

Matt, my estimate is that 2023 revenue from IRD would be in the $75M range.

[Maxmoe]

If rekr is "worth" over $200 million then why wouldn't ird be worth double that? It has more than double the business. Rekr reported about 9 million in revenue in q2 and q3 in 2023. That's revenue, not earnings. 

[cabbieJBJ]

Quarterly losses are in the $8-10M range with little Q/Q improvement in the past year. I made money on REKR when it was beaten down to 60 cents, but it's ability to deliver is a big question mark. Maybe Berman's new financing scheme will avoid the ongoing dilution they have faced in the past couple of years.  In any event, if it doesn't, Berman has first call on all REKR assets.

[Maxmoe]

It's okay to have a comp that's trading way higher. As long as they don't choke on their success.  no way those very expensive restrictive notes will compete with qtrh's balance sheet when it's time to submit proposals. 

[cabbieJBJ]

REKR aquisition announced thsi morning. 2x revenue.  Basically buyin a sales dspartment in western US: Rekor Systems Strengthens Position in Urban Mobility with Acquisition of All Traffic Data Services, LLC excerpt: The acquisition is valued at $19 million through a combination of cash and stock. ATD will operate as a business unit within Rekor, leveraging its existing team of

[Maxmoe]

The classic competitive response would be to poach the top 10% of employees and pick off half their revenue. At a fraction of the $19 million rekor paid. Why buy the company if you can just grab their assets (people). It's a puppy eat puppy world. Let's see how ruthless the industry is. 

[Maxmoe]

Or, how about this math? ATD has 9 million in revenue and "worth" $19 million. Rekr has $9 million in revenue , per quarter, and has a market cap over $200 million ? ATD has $3 million ebitda, Rekr has losses?  Rekr is a short, and/or Qtrh is a screaming bargain. "Easy" double in 2024. And/or Rekr drops in half. 

[cabbieJBJ]

Well said Archimedes. Just for fun, MIT has put out a list of the 20 people who have most influenced/shaped the planet: 1. Jesus Christ: Prophet and central figure of Christianity 2. Confucius: Chinese philosopher 3. Sir Isaac Newton: British physicist 4. Gandhi: Indian politician and activist 5. Albert Einstein: German physicist 6. Aristotle: Greek philosopher 7. Vasco da Gama: Portuguese

[Maxmoe]

Like most everything you read on the internet, it's made up malarkey. Google tells me the mit list is actually below. Since it is all made up jibber jabber, you can find any number of "lists" attributed to MIT. All of which are completely unrelated to Qtrh or anything else on stockhouse and should be deleted as spam. Ba humbug. 

[Maxmoe]

Take my word for it. Very different list that I just suck at doing a cut and paste. 

[Socrates1]

Does your birdie works for the brokers? lol What does it say about USA collapsing into a civil war? My biggest fear is the current administration in US will self destruct and implode due to their constant lying, dishonesty and frankly corruption at all levels (KANADA not far behind) ...............The stock market may not even matter by late summer or fall of 2024 since they will cancel the

[Socrates1]

are the people mad? 386698 signatures 386698 signatures The largest petition EVER.......... To get rid of Trudeau and the rest of the WEF TRAINED government.. Sad part is? The parlament will do NOTHING...........DEMACARACY.............

[Homework]

Socrates........... Yes , there will surely be some type of evil event prior to the election. No one knows what that will be.  The world is in a sad state right now caused by all the corrupt power hungry entities. Don't forget there is also a very powerful countermeasures in place by the powerful good people./ entities.  we will prevail in the end. Live your life to the fullest