I'm getting a bit worried about Quarterhill's direction. They're looking to expand into logistics, but I think they need to focus on their existing contracts and cost management first. Logistics is a tough market to crack, and they don't even own their own transportation network. That means they might have to buy another company just to get a foothold, which isn't exactly a lucrative move.
And let's be real, logistics is a money pit even for big companies. Uber's logistics sector is still bleeding cash with negative EBITDA margins. Most larger companies have already built their own logistics solutions to maximize efficiency. For Quarterhill to penetrate this market, they'd have to acquire an existing company and build a new platform from scratch. That's a recipe for disaster - it'll take forever to build and even longer to turn a profit.
I think they should just focus on making their core tolling business profitable and sell to a larger company. That's the best way to maximize shareholder value. Instead, they're diverting resources to a logistics venture that may never pay off.
But hey, at least Rusty Lewis is still buying up shares like crazy. Guy knows his stuff, so if he's still investing, that's a good sign. Maybe he sees something I don't?