Shortstopper, I agree with your assessment of Dart's OmniTracs purchase. Doesn't mean anything one way or another for Trackware.
Of course, Dart is also considering using Qualcomm's and Terion's trailer tracking products, so the Dart test announcement by HWYM didn't really mean anything one way or another to begin with. When the deal is closed, that's when it there will be some small news worth paying attention to (although Dart is peanuts in the grand scheme)
In regards to Qualcomm acquiring HighwayMaster for the tax loss carry forward, that's pretty far fetched. The high-yield debt assumption would more than kill any tax benefit, and make the acquisition dilutive. Not the thing that a company with a high flying stock is going to do unless there are strong strategic benefits.
What would be the strategic benefit? Qualcomm has already eaten HighwayMaster's 5000 lunch, is introducing a complementary CDMA cellular based product this spring (OmniExpress), and there would be anti-trust questions.
You have some other thoughts there I'm sure beyond tax benefits. Please elaborate.
Man, you're speaking my mind. It's an rational rumor. HWYM will complement QCOM extremely well in this tracking business. QCOM's stock has been appreciating wildly last year and snatching HWYM would be effortless for this big monster. HWYM has strong customer base and a good team. My concern is I don't want to hold QCOM stock and may have to cash my HWYM shares if QCOM make a bid for this good company before I see $20. Dart with 1000 units is so small. It wouldn't make or break HWYM future. As a matter of fact, it is better for HWYM that Dart went with QCOM so HWYM can focus their resource to deliver for SBC this year (28K units). More solid business will follow, IMHO.
HighwayMaster still needs to restructure some time soon. Anyone who looks at the numbers can see this, and Mike Smith has been open about it. The balance sheet is highly leveraged and the interest payments on the debt are $1M per month.
The sooner the restructure the better, because the closer to cash run out, the worse the terms.
Stock price is very important, because if the stock keeps running (especially above SBC's $14 conversion point), HighwayMaster might be able to private place common stock, convertible preferred stock, or convertible debt and use it to reduce the high-yield debt load.
Without a strong stock price, HighwayMaster will have a hard time raising any new money at reasonable terms due to the debt load risk.
So, keep it going up, and there will be a double benefit: the fundamentals will get better after restructuring, helping the stock keep going further despite the dilution.
When the debt load is no longer a threat, only strength will be left.