Stephen Takacsy, president, CEO and chief investment officer at Lester Asset Management, discusses his top picks: Quarterhill, Pollard Banknote, and AG growth.Quarterhill had two businesses; an IP patent licensing portfolio known as Wi-LAN which was finally sold a few weeks ago, and an Intelligent Transportation Systems business. So, the company is now a pure play ITS solutions provider and is a leader in electronic toll lanes in the U.
The ITS business currently has a record backlog of around $800 million and a robust pipeline of potential projects as governments are looking to install more technology on roads to collect more revenues from drivers to help pay for transportation infrastructure. Now that the company is a pure-play ITS leader, the stock has started attracting the attention of institutional investors and is likely to command a higher valuation going forward.