Quarterhill Inc (QTRHF)

[Neverending]

Unfortunately Skippen and Wi-Lan have lost a lot of credibility (I do not think they have ever actually won a case at trial under Skippen). They have lost 2 recent court cases and the ability to take a patent all the way to a court win is what helps you get settlements that are not "nuisance value" (as it is called when companies settle to avoid the legal expenses and risks because the dollar amount of the settlement is less than the cost of the lawyers). The guidance for Q4 they gave in the financial update is 26-28 million. The 4th Q 2012 came in last year at 21.7 million. The company said some of the Q4 guidance is non recurring so its hard to tell what the recent settlements are worth on a yearly bases but I would speculate it is 16-18 million. Does not seem like a lot for all those big names. My guess is they become a take over target at some point which the Financial Post (Canada) also speculates. Wi-Lan has a lot of patents but the % that generate revenue is low and these losses make me question the CEO credibility in buying up patents that can generate revenue. I will see what they say on the conference call. Also, with all these trials they are losing with all this high priced lawyer talent they are bleeding cash every quarter. I question they judgement on what a good patent is at this point.