In light of short-term fluctuations, I am looking at developments at two of our technology holdings ...
Top Picks 2018: Quarterhill (QTRH)
01/19/2018 5:00 am EST
Quarterhill (QTRH), which trades on both the Nasdaq and the Toronto exchange, has evolved from a one-trick patent troll pony to an enterprise that is now involved in the Internet of Things, explains Benj Gallander, editor of Contra the Heard.
That expansion has seen revenues skyrocket from $93 million in 2016 to $86 million just last quarter, with the bottom line showing a fat profit of better than $26 million or $0.22 per share.
Meanwhile the stock trades below $2.00 USD, as after having some mediocre years, it fell off the radar screen for many investors. Back in its heyday this was an $80 stock.
In December, a new CEO was hired, Douglas Parker, who was Senior Vice-President, Corporate Development at Open Text (OTEX). In that position the company acquired about $2.5 billion of enterprises with over 3,500 employees.
Most importantly for investors, the stock price skyrocketed. It would not surprise at all to see Parker create tremendous value at Quarterhill given his track record. Prior to his arrival, the firm has already made a number of acquisitions this year.
Quarterhill plays in an impressive sandbox. Some partnerships include Amazon (AMZN), Ericsson (ERIXF), Fujisoft (Tokyo: 9749), Hitachi (HTHIY) and Samsung (SSNLF), just to give a brief sample. Those are only some of the agreements signed this year.
A primary reason that this stock qualifies as a conservative pick is the dividend. Currently it is north of 2 percent, a very decent payout in these low interest times. If the bottom line stays reasonably fat, there is an excellent chance that it could double over the next few years.
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