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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Ignoring sector considerations, which of the following would you look to take a position in today in a RESP with a 6 year time frame and an objective of achieving the greatest total return: BEP.UN, CSH.UN, BCI, ECI, DOL?
Read Answer Asked by Chris on November 28, 2017
Q: Good Morning,

I have not yet finished my homework on Quarterhill, but I need your advice.

In the past nine months Quarterhill has invested US$67,415,000 in the acquisition of three companies (Viziya, IED and iCOMs), I believe these acquisitions were financed by cash on the balance sheet. In the June quarter, revenues were US $12,842,000, in the September quarter revenues were US $72,158,000. Net income was US $26,211,000, plus a onetime charge of US $15,190,000. They have US $40,000,000 in cash. Can Quarterhill repeat these numbers over the next quarters ? If they do, then their annual revenues will be US $280,000,000 and net income will be in the US $100,000,000 range and cash on the balance sheet will be north of $100,000,000.

Current US stock price is $1.73 ($1.73 multiplied by 124,767,000 stocks) and the market capitalization is US $216,000,000. If I deduct the projected cash on the balance sheet for the next twelve months, the enterprise market cap is US $ 116,000,000. These are very good numbers and this is a cheap company. I feel as if I'm my missing something in my analysis? Why is the company so cheap ? Will the new acquisition remove the lumpiness in revenue from quarter to quarter ?
Merci
Read Answer Asked by Gilles on November 28, 2017