Kallo Inc. (KALO)

[gempicker]

Need some clarity..

If you re-read the 10-K we can start to see some hints of where they may be at.

The “holistic” approach where Kallo provides end-to-end healthcare solutions is recognized as a longer term sales channel. Furthermore, logically thinking about Guinea here. How can the holistic approach work if there is a need for 5 hospitals in particular regions of the country? It just cannot with these missing links in my opinion. I still have a hunch and this is acknowledged in the Kallo filings where they indicate they have been confirmed and selected to design and build these regional hospitals and in the ITD press/actions where they indicated they would be building these hospitals under the roof of their new facility they recently moved in. From ITD’s first announcement of moving into a new facility to meet Kallo’s needs until they actually did move was quite a delay or hesitation. My hunch is they would not have justified the move without some assurance that the business from Kallo, these hospitals, were coming. That is my hunch.

Kallo has recently had additional people leave based off of linkedin profiles. Yet somehow they are continuing to keep many folks on staff. Quite possible, those associated with the longer and more uncertain sales channel are not needed currently. However, those in the design, manufacturing and modular structure delivery logistics would be a necessity. If the hospitals come the fruition I would expect some announced JV or partnership with ITD.

In addition, they do have the significant medical supply contract with Chrispod. No timelines on delivery and payment schedules shown, but certainly this type of middleman logisitical and supply services can support the company for awhile and help recover some valuation.

Meanwhile, I interpret the silence strategy as a means to control dilution opportunity from the CD holders. No volume=no further dilution. Convertible debt can easily be wiped out once either of the above business scenarios come to fruition. PPS recovery would be swift. Financial support has still been coming mainly from the inside as there is and has been no means using stock equity. And of course, the BOD now holds a huge % of stock.

Market cap stands at $700,000; 20,30,40 times current is certainly possible once debt is resolved and money is flowing in and communications resume..

In my opinion..