Rotuma, in my view, the key to QAD is unlocking the value of the Iridium asset. This might be achieved through organic growth of the satellite network’s business (which, under Chairman/CEO Carmen Lloyd we are told has turned the corner, and is now “cash flow positive” – this with a mere 6% of the network’s capacity in use!) OR through the outright sale of Iridium.
The later would render to Quadrant a sizeable war-chest to continue its already successful stratagem of acquiring undervalued telecom ventures and payment systems in Australia and globally.
It might also give scope for a more direct enhancement of shareholder value in the form of a special dividend, or a share buy-back.
Readers should appreciate that management at Quadrant are MAJOR shareholders, accounting for a significant proportion of the stock. Foremost in their minds too, now that they have successfully bedded down some of their acquisitions, is appreciation of the share price.
Much of the ‘slop’ of tradeable stock has been removed from QAD in past months, and perhaps it is time for the share price to move on.
QAD Price at posting:
0.0¢ Sentiment: None Disclosure: Held
