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Overstock.com Wins Ruling in Prime Brokerage Litigation
Court Gives Overstock.com the Okay to Proceed and Denies Prime Brokerages Attempts to Derail Exposure
Last Update: 10:53 AM ET Jul 18, 2007
SALT LAKE CITY, July 18, 2007 /PRNewswire-FirstCall via COMTEX/ -- Overstock.com, Inc. (OSTK : overstock com inc del com
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Last: 20.69+1.07+5.45%
10:56am 07/18/2007
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OSTK20.69, +1.07, +5.5%) ( http://www.overstock.com) announced today a favorable ruling in the lawsuit pending in the Superior Court of California, County of San Francisco against most of the largest prime brokerage firms in the country, including Morgan Stanley & Co. Incorporated, Goldman Sachs & Co., Bear Stearns Companies, Inc., Bank of America Securities LLC, Bank of New York, Citigroup Inc., Credit Suisse (USA) Inc., Deutsche Bank Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., and UBS Financial Services, Inc.
On July 17, 2007, Judge John Munter of the California Superior Court for the City and County of San Francisco ruled that Overstock and it co-plaintiffs have stated viable claims for market manipulation under California securities law, for common law claims for conversion and trespass to chattels, as well as for injunctive relief under California's Unfair Business Practices Act against the defendant prime brokerage firms based on those defendants allegedly executing naked short sales of the stock of Overstock with the intent of manipulating the market price for the shares of those companies' stocks. In addition, the Court granted Overstock (and its co-plaintiffs) leave to amend other of their claims for restitution under the Unfair Business Practices Act and for the common law claim of interference with advantage, to more specifically plead the factual basis of these claims.
In so ruling, Judge Munter rejected defendants' claims that Overstock's complaint is preempted by federal law and that 'phantom' shares are not created by naked short selling of a company's stock as a matter of law.
"This is a huge win for us," said Jonathan Johnson, Overstock Senior Vice President of Legal. "We are eager to start discovery and move this case to trial. The day we expose in detail the defendants' misconduct to a jury will be a good day for Overstock, its shareholders and the capital markets."
"As I listened to defendants' counsel argue that phantom shares don't exist because the SEC says they don't exist," said Patrick Byrne, Overstock Chairman and Chief Executive Officer, "I was reminded on Abraham Lincoln's favorite joke: 'If you call a tail a leg, how many legs does a dog have?' 'Five?' 'No, four -- because calling a tail a leg doesn't make it a leg.' Defendants create phantom shares by facilitating naked short selling and other types of trades which result in failures-to-deliver. This is manipulative and illegal -- regardless of what the industry's all-too-cozy regulatory agency says. The battle to clean up Wall Street is only going to be won when it is brought to a jury of 12 Americans. Today was a giant step towards that goal."
The suit alleges that the defendants, who control over 80% of the prime brokerage market, participated in a massive, illegal stock market manipulation scheme and that the defendants had no intention of covering such orders with borrowed stock, as they are required to do, causing what are referred to as "fails to deliver." The suit also alleges that the defendants' actions caused and continue to cause dramatic distortions with regard to the nature and amount of trading in the company's stock which have caused the share price of the company's stock to dramatically drop. The suit asserts that a persistent large number of "fails to deliver" creates large downward pressure on the price of a company's stock and that the amount of "fails to deliver" has exceeded the company's entire supply of outstanding shares. The company is seeking damages of $3.48 billion.
About Overstock.com
Overstock.com, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ National Market System and can be found online at http://www.overstock.com.
Overstock.com(R) is a registered trademark of Overstock.com, Inc. All other trademarks are the property of their respective owners.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding statements regarding the case going to jury, defendants' exposure and the amount of damages that the company will seek, as well as all such other risks as identified in our Form 10-K for the year ended December 31, 2006, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.
SOURCE Overstock.com, Inc.
Does anyone have the balls to buy down here?
Does anyone else get the feeling that if we go below $1.60 it could bring on a dramatic and quick fall. I think the bigger breaking point will be $1.50. If we get below that, I think we could go down real quick to the $1.20-$1.30s.
I'm not liking how this is shaping up. I hope nobody NEEDS their TKO money.
Support at $1.60 drying up real fast...we'll be in the $1.50s real quick!!!!!!
What should we expect when a company continually revises guidance downwards?
52 WEEK LOW!!!!!!
Am I good or what? I just checked again and it seems TKO is still on the list of noncompliant companies with AMEX. Is anyone at this company actually working?
Thanks Jeremy!! I just notice it was missing some of my comments..oh well
Looks like TKO will be setting a new 52 week low today. How disappointing.
Nice job on that. Chart makes me want to vomit but you did a nice job, I like the commentary!
*************TKO Annontated Chart********************
This is my first annontated chart..hehe..Although all the indicators are not pleasing to see I had fun doing it..I still think that pps will continue to go down unless the management release a killer news...
MLK, hope you like my annontated chart :)
Well it's getting pretty close to the big zerrr O.
well, there's always zero.
BSD
Germantown, MD. You never visted the website?! Come on MLK, your better than that!
I dont mind either, he is confused.
Tommorrow should be interesting day in the market. Both YHOO and INTC are down afterhours after earnings. INTC looks like they met, but those expectations were most likely built into the stock price. YHOO is just plain horrible and is going down anyways. The next two weeks are going to be fun to watch. Most sectors of the larger caps have been on fire, I would expect some type of sell-off after they report but CEO's are getting smarter and lowering expectations so when they report they are blowing them away.
Will be interesting, especially since Friday is option expiration.
Telkonet is Germantown, not Denmark.
How can we even justify a share price of $1.65 when TKO already warned that they will never make what they said they would make to start the year? Beginning the year, TKO without Ethostream and SSI said they would make $25M. Then, they acquire SSI and Ethostream which are supposed to make well above $10M this year, yet TKO is still only promising $25M?
Something is rotten in Denmark!! TKO is coming in way under on their initial projections. What went wrong? Going lower again I have a feeling before the next losses (ie. earnings) report.
MLK,
Do your schools and colleges not break up for the summer months and lots of people take time off?
As Color would say "Whatever!!"
Ching Ching, another $5`s for your pot!!
GLL
I think we may be in for a disappointment come earnings week. Apparently TKO is promising institutions that they will do $5M in the second quarter. I'm guessing it won't even be close to $5M. Then what will the vanishing institutions do?
Dusty,
I presume the search for the new COO won`t start until August minimum until the holiday season is out the way.
Hello to everyone, I still watch!!
GLL
TKO is still not in compliance with AMEX listing requirements...what a shame. I wonder if TKO cares that it is at a 52-week low?
For grins...I took a look at the CNBC site to see what has changed in Telkonet...down to 38 tutes....and big block holders went from 105 to 95, if memory serves me correctly....it was 105 just prior to the last CC. When you look at the IHUB info stuff--shows shares distr as of March-07...comparing, you will notice that 10 major holders have dropped out since March per that info as well.....that is 25% of the major holders have sold off. and out. IF anyone has doubts about holding on to this stock 'til the end of the year...you are not alone...
http://www.cnbc.com/id/15837275?q=tko
Former SEC Officials Enter Securities Case
High Court to Consider Investors' Rights
By Carrie Johnson
Washington Post Staff Writer
Tuesday, July 17, 2007; Page D01
Three former Securities and Exchange Commission officials yesterday asked for permission to intervene in a Supreme Court dispute that could determine whether defrauded investors can recover money from third parties.
The case has triggered national attention because it is likely to have repercussions for employees and shareholders who lost billions of dollars in the 2001 Enron collapse.
William H. Donaldson, left, Arthur Levitt and Harvey J. Goldschmid want to expand investors' abilities to sue in frauds. (Dennis Brack - Bloomberg News)
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The five-member SEC voted earlier this year to file court papers that support investors and their ability to sue accountants, lawyers and other third parties who did not make public statements about fraud but who nonetheless may have helped their clients carry out the schemes. The SEC brief, however, was never filed.
Last month the U.S. solicitor general, who speaks for the Bush administration before the Supreme Court, did not accept the SEC's position and let pass a deadline for filing legal briefs on shareholders' behalf. The decision came after President Bush and Treasury Secretary Henry M. Paulson Jr. said that position could put U.S. companies at a disadvantage to foreign rivals and expose businesses to substantial financial risks.
The case, in which Charter Communications investors want to sue business partners Motorola and Scientific-Atlanta, is scheduled to be heard by the Supreme Court in its coming term.
A bipartisan group of former SEC leaders, including former chairmen William H. Donaldson (R) and Arthur Levitt (D), and former commissioner Harvey J. Goldschmid (D), asked for permission yesterday to file a post-deadline brief with the high court in what they called a "critical" case.
"Holding liable wrongdoers who actively engage in fraudulent contact that lacks a legitimate business purpose does not hinder, but rather enhances, the integrity of our markets and our economy," wrote their lawyers, New York University law professor Arthur R. Miller and former SEC lawyer Meyer Eisenberg. "We believe that the integrity of our markets is their strength."
The big-money issue has mobilized lawyers who bring class-action lawsuits and the companies and executives they target in one of the most important securities-law issues to reach the Supreme Court in years.
In cases in which fraud-ridden corporations have filed for Chapter 11 bankruptcy protection, investors may not be able to wrest money from the company itself. Lawsuits against business partners and advisers such as accountants and lawyers may present the only rich and viable option for shareholders and plaintiff lawyers, experts said.
Industry groups, including the U.S. Chamber of Commerce, have already signaled their intent to file court papers with the high court. Briefs supporting corporate defendants in the case are due Aug. 15.
Ron's road trip ! Either he has taken the back roads or got a flat tire. Anyone here anything on the new CEO front? Looks like we may head lower if we don't get something positive here. jmho
I did not forget my passwowd and I did not see a link posted but all is ok I will be the gwhizzle man now thanks Snoop...
You forgot your password.
Investors Hub has a new address:
http://investorshub.advfn.com
A new "cookie" has to be created and saved on your computer so you have to log in using your name and password. If you forgot your password, it's probably too late now for the administrators to believe your identity.
Try to remember your password and you should be able to login under your old user name.
Tony
gwhizzle is more fun to pronounce anyhow...;-D
last week all were asked to verify their accounts..the message, and link, was at the top of the ihub tko site in the upper left hand corner. If you did not click on the link, well, then maybe thatt is why there is trouble today. The request was to verify all...especially the password...all it took was one click on the link...that was it!
Did someone change the board over the weekend?? This is ChaossMaster but I cannot log in as such and had to create a new account. Could not post a message or collapse the top or use any other functions. I only have 3 posts today. I looks like some others are having same problem...
Ilooks normal to me huey..
Tired of guessing what TKO might bring so I will the others answer that for you..
Apparently some changes over the weekend to the board. I don't have a Post New Message button, and can't hide the board info and RP pic.
Anyway, anyone think the numbers will be pushed out early due to the anticipated increased revenue?
EthoStream Selected by Choice Hotels Cambria Suites As Exclusive High-Speed Internet Access Provider
Providing Wired and Wireless Broadband Access and Support to Upscale Brand from Choice Hotels International
Last Update: 10:32 AM ET Jul 16, 2007
GERMANTOWN, Md., Jul 16, 2007 (BUSINESS WIRE) -- EthoStream, LLC, a Telkonet company (TKO : TKO
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TKO, , ) , operators of one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., and a preferred or endorsed provider for some of the world's largest hotel companies, has been named by the Cambria Suites brand, the upscale, select-service, all-suites brand from Choice Hotels International, as its exclusive broadband Internet access provider. The first Cambria Suites hotel opened in Boise, Idaho in April 2007, and the brand has executed domestic hotel franchise agreements for over 50 hotels. EthoStream will provide every hotel guest room with both wired and wireless Internet access, wireless access in the public areas, as well as customer support, system management and monitoring.
"We choose to align ourselves with quality partners that can provide the level of service that our guests expect, our franchisees expect and we expect," said Phil Beilke, senior director, brand management, Cambria Suites. "Selecting EthoStream made the most sense both financially, as well as from a service provider standpoint. By using one service provider, we can provide the consistency and control that we need as we develop a new brand. With EthoStream, we can centrally manage content on the hotels' Internet welcome page, log-in page, and subsequent pages, to deliver a consistent branded experience. We can also remotely monitor our guests' Internet experience, so we can ensure our properties are delivering the service that our hotel guests expect."
About Cambria Suites
Cambria Suites hotels are smoke-free and every suite features separate work and living areas with ergonomic chairs, movable desks, luxury linens, and Bath and Body Works(R) products. The all-suites hotels offer the latest in technology, including a 52-inch television in the open, airy two-story lobby and each suite includes two flat-screen LCD televisions, a CD/DVD player, and MP3 jacks. Select suites offer MediaHub(TM) plug-and-play technology allowing guests to connect their laptop, MP3 player, game console, digital camera, or CD/DVD player hassle-free. Free high-speed wired and wireless Internet access is available throughout the hotel, so that guests can stay connected when on the road.
For more information on Cambria Suites, visit cambriasuites.com.
About EthoStream
EthoStream, LLC is a technology solution provider targeting the hospitality and MDU/MTU verticals. Operating one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., EthoStream is a preferred or endorsed provider for some of the world's largest hotel franchisors.
Now offering solutions including VOD, VoIP, digital video surveillance, Internet connectivity and HSIA packages, EthoStream has developed the most comprehensive technology management platform available for the hospitality industry.
EthoStream has distanced itself from other providers in the hospitality HSIA field through the size of its EthoStream Hospitality Network, high quality of technology and support provided to network members, security of the network and overall guest satisfaction. Beyond claims made by competitors, as the premier hospitality HSIA provider, EthoStream has continued to lead the industry through end-to-end service and its high quality standards. To learn more about EthoStream's products, services and EthoStream Hospitality Network, please visit http://www.ethostream.com.
About Telkonet
Telkonet develops and markets technology for the high-speed transmission of secure voice, video and data communications over in-premise and shipboard electrical wiring. The revolutionary Telkonet iWire System utilizes proven powerline communications (PLC) technology to deliver commercial high-speed broadband access from an IP "platform" that is easy to deploy, reliable and cost-effective by leveraging a building's existing electrical infrastructure. Telkonet's products are designed for use in commercial and residential applications, including multi-dwelling units and the hospitality and government markets. Applications supported by the Telkonet "platform" include but are not limited to: VoIP telephones, Internet connectivity, local area networking, video teleconferencing, IP surveillance, energy management and a host of other IT services. For more information, please visit www.telkonet.com.
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Registration Statement and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (SEC).
SOURCE: EthoStream, LLC
Porter, LeVay & Rose, Inc. Michael Porter President 212-564-4700 mike@plrinvest.com www.plrinvest.com or Rubenstein Public Relations Adam Mazur, 212-843-8073 amazur@rubensteinpr.com Copyright Business Wire 2007 ********************************************************************** As of Thursday, 07-12-2007 23:59, the latest Comtex SmarTrend® Alert, an automated pattern recognition system, indicated an UPTREND on 05-23-2007 for CHH @ $39.49. As of Thursday, 07-12-2007 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 03-05-2007 for TKO @ $2.61. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright © 2004-2007 Comtex News Network, Inc. All rights reserved.
OK---soon it will be Monday...and then on Monday morning, folks are gonna be looking at their portfolios, the stocks they are watching, and make comments on message boards that they hang out on.
I have a suggestion: Monday (Moon day) is ALWAYS a stressful day--only because people 'believe' that it is....so here is an easy way to reduce the stress, when it comes to this board. When you do not like someone, or what they post...put them on ignore, and move on....do not let THEM control you by spoiling your good mood. OK? Good!
Please remember that what you say to someone, if nasty or not nice, can get you banned from the board...and I know we are all adults here, which I interpret as we all know what is expected of ourselves and each other, and are willing to follow through. Thank YOU, and good night.
We need SOMEthing..that is for sure..
We need news this week and quickly.This is needed very badly this company looks like it's hanging on a thread.RP needs to give shareholders confidence this week or we will go lower...no question about it.
Ouch, you Gotcha us again with another great post. Thank you and it says a lot. I will book mark it.
While waiting for the 'good' news from our TELKONET investment, this link shares a TKO (knockout).. BTW, this is 'REAL' genius...
http://www.frontiernet.net/~jimdandy/specials/onedayatatime/onedayatatime
This is in response, to the claims on this Telkonet IHUB and other MB's, that another person is allegedly posting and impersonating, under/with the Steelcitydog and Steeltowndog ID aliases..
If such claim is actually happening, this is very easy to control.. It can only happen if the 'password' is known and/or the account is left open, as 'continually logged in'..
To remedy such claim, a 'change of password' and/or 'logging out', is all that's required..
To which then, baffles me to read a post that indicates the 'alias' used.. Then claiming that post wasn't me and was created by someone else.. As a result, either the 'alias' is (allowed) to be used by another person or is (actually) the alias creator themself..
In reference to our old friends Sherlock and Watson, "It's all elementary"!!!
That makes us two rbt..I haven't put him on ignore yet because theres no reason to..
You are wrong about the broad market having anything to do with micro-cap stocks like this. Days like yesterday happen when mutual funds and hedge funds press the panic buy button becuas ethey are caught with either too much cash or short they dont want anymore.
And I hope your right about all the bad news being priced into the stock, I would think that is the case but lets hope your right!
Typically with stocks, if you have a bunch of bad news (which is really all TKO has given anyone over the past few years) and you are expecting some positive news in the not too distant future I would expect the stock to go up during a week when the broad indexes are setting record highs. And, those indexes are not just advancing a little bit, or one out of every four days, they are going up consistently and strong.
That, plus the fact that you would expect some buying interest at the all-time record lows when the CEO is out on the road trying to drum up interest by stating what I just said in the first paragraph. I guarantee he is telling the institutions that the bad news has all been priced in...TKO is on the cusp of greatness...or at least turning a profit.
Where is the interest. There is zero. Not good at all.
Think of it this way...if the major indexes were moving down a few percentage points daily, would TKO still be hovering at $1.65. I can pretty much guarantee it wouldn't. It would be lower, because a lot of people would be pulling their money out of the market and waiting for a catalyst to reinvest. Every day that goes by means TKO is in a little more trouble. If the market reverses, we will be in huge trouble. They need the catalyst and no amount of taking the story to the street is going to work with the institutions. They need to show some results and they need to do it in a hurry.
I have decreased my position steadily over the past few months. I only have about 1/4 of what I had a few months ago.
As far as being a very bad day, I dont think you are correct but you can obviously think whatever you wish.
I am not sure why you think it should of gone up this week. There is nothing to indicate that it should, no news, no pending financial release. I dont think it will and I dont think it should. It will go up when/if they release some sales figures.
I am not counting on it going up right now, would be nice, but I dont think its going to move too much at all right now. Why would you think it would of gone up?
Back to $1.65...like I said. This stock is just hilarious.
Sorry, trader...I'm saying the light day is bad...extremely bad...the road show was this week. We are at the lows of TKOs lifetime. Yet, no buyers? Not good at all.
I thought you had left trader...haven't seen you on here for a few days. I know you talked of getting rid of half should we get down to these levels. It's good to know you are still around. I'm hoping that the support which I have continually said exists at $1.65 remains. I'm becoming less and less convinced daily that it will stay there. Lots of shares have traded hands at these levels. And, if we get one more piece of bad or delayed news, we will go down sharply.
Also, there are a lot of people reading my posts...my hate mail overflows daily. They tell me I'm on ignore, but still manage to reply with a private message about how I'm on ignore. Sort of funny, but whatever floats their boat.
Besides, everyone that has me on ignore is already convinced this is the stock of the 21st century and nothing I say can convince them otherwise. There are plenty of new visitors that need both sides of the story, which I'm trying to provide. Actually, as of late, I'm the only side, as it appears the cheerleaders have gone home.
This stock, I'm convinced, is in more and more trouble everyday.
This week there was presumably a concerted effort to sell TKO and its stock to institutions. There was even the long awaited road show supposedly taking place with various moneied investors.
But, despite the fact that TKO is at or near its lowest point EVER, it can't garner more than 50,000 shares traded in one whole day. That doesn't bode well for me if I decide to trade my whole position in one day. I probably would have to drag down the price to about $1.50 if I wanted to get out of all my shares.
TKO is in trouble. Look no further than the market's reaction to the story being told by RP and company this week. While the rest of the market soars, TKO flails uncontrollably. Big Trouble in Little Germantown, if you ask me.
You realize I am the only one reading your posts, right?
This might be the lightest trading day for TKO I have ever seen. Not good, but not bad. TKO is not the type of stock that would participate in a broad based market rally like yesterday (which was attributable to short covering and the free money that is continuing to be dished out in Japan, in my opinion).
This 1.65 area does seem to be the line in the sand. One big buyer could make this interesting.
Yep...back down to $1.67...here we go...ever play the game chutes and ladders...only in the TKO version, there are only step stools and long steep chutes.
Well, now that the Dow, S&P, and Nasdaq are all positive, we see TKO showings its true colors and sliding down once again. This stock is truly remarkable in its ability to withstand any positives from the overall market. It just keeps withering away while everyone else investing in other companies continue to stuff money into their mattresses.
In typical TKO fashion, we are starting to give back our giant four cent gain today. If the past few days are any indication, TKO will once again finish even or negative while the rest of the market goes green.
TKO is my Rudolph, the "red" nosed reindeer.
I see that TKO is still on the list of noncompliant companies with the AMEX...did the response get lost in the mail? I have an ingenious idea...leave the cronyism at the door, and perhaps you wouldn't run afoul of AMEX requirements. Just a suggestion.
This is pathetic. Everyone is just wasting their money in this stock while the market flies. How I wish my TKO money was placed somewhere else...hope others aren't making the same mistake as me. TKO can't even get a modicum of support from the usual suspects on I-Hub or Yahoo. In fact, the biggest cheerleaders over the past few years have ditched their TKO shares at its lowest point. Things look less and less promising each day.
It seems TKO is now promising to bring in $5M in the second quarter. What happens to the pps if they don't make it. I hate the thought.
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ABOUT TELKONET
Telkonet (AMEX: TKOI), founded in 1999 and headquartered in Germantown, Maryland, is a leading technology systems application developer of innovative powerline communications (PLC) solutions for the commercial and government markets, establishing a range of patented award-winning systems. Telkonet’s PLC solutions are marketed and sold by resellers throughout the United States, Canada, Europe and Latin America.
The Telkonet iWire System™ delivers wired and wireless broadband network access that is simple and cost-effective to deploy, with secure and reliable connectivity at every electrical outlet. The solution is ideal for any type of commercial building, regardless of the type, age of number of buildings. Telkonet’s leading-edge technology is deployed around the world.
COMPANY WEBSITE
http://www.telkonet.com/
Telkonet, Inc.
20374 Seneca Meadows Parkway
Germantown, MD 20876
Phone: 12409121800
Fax: 14108971144
Sector: Technology
Industry: Communications Equipment
Telkonet’s patented powerline communications (PLC) systems – the Telkonet iWire System and next generation 200 Mbps Telkonet Series 5 – use a building’s existing internal electrical wiring to enable Internet connectivity throughout an entire building, converting electrical outlets into high-speed data ports. This is an ideal solution for properties that are not wired with CAT-5 or where CAT-5 is cost-prohibitive.
The EthoStream Gateway Server (EGS) product line of gateway devices, which are developed in-house, deliver wired or wireless high-speed Internet access, integrating easily with any combination of WAN connections. The EGS products range from a cost-effective gateway for limited use applications to a feature-rich, dual-WAN, scalable gateway for full-service properties.
Telkonet’s energy management systems, Telkonet SmartEnergy (TSE) and Networked Telkonet SmartEnergy (NTSE), reduce in-room energy consumption by controlling heating, ventilation and air conditioning (HVAC) usage based on occupancy. By eliminating unnecessary heating and cooling of vacant rooms, TSE typically reduces energy consumption by 30% or greater.
Telkonet’s proactive support center brings quality of service to a new level with its dedicated, in-house employees, 24/7/365 support, and integrated proactive monitoring and management tools that put property management in control. By integrating the EthoStream Gateway Server and the web-based Telkonet CENTRAL, our in-house support team has real-time visibility into a property’s HSIA usage and data, as well as ISP status.
Telkonet SmartEnergy™ (TSE) controls HVAC usage and improves energy efficiency by adjusting and maintaining a room’s temperature based on occupancy, using a combination of occupancy sensors, intelligent programmable thermostats or packaged terminal air conditioner (PTAC) controllers. TSE eliminates wasteful heating and cooling of vacant rooms without compromising an occupant’s comfort based on our patented Recovery Time™ technology.
Building on the proven capabilities of the TSE system and incorporating Telkonet's unique Recovery Time™ technology, our new Networked Telkonet SmartEnergy (NTSE) advances intelligent HVAC building control with a flexible, resilient and low-cost energy management platform. NTSE utilizes a ZigBee wireless IEE802.15.4 “mesh” network, where each device functions as a wireless repeater and enables energy management thermostats to communicate with each other and aggregate communications up to a single master NTSE Gateway Server on site. NTSE enables central control without needing expensive back-haul wiring. Its key monitoring and analysis features ensure optimum energy savings, giving property owners the tools to identify and implement energy savings, providing total visibility and detailed data about a property's HVAC system and its energy consumption, together with real-time, instant remote management capabilities.
Key features and benefits of NTSE
Telkonet’s proprietary, patented powerline communications (PLC) products harness a building’s internal electrical wiring to form an IP network, turning power outlets into data ports, while leaving the electrical functionality unaffected. Telkonet’s PLC systems – the Telkonet iWire System and the 200 Mbps Telkonet Series 5 – represent a quick, economical, and non-disruptive way to achieve high-speed Internet connectivity throughout a building. Telkonet’s PLC systems offer the hard-wired security and reliability of a CAT-5 cabled network, but without the cost, physical disturbance and business disruption of wiring CAT-5. For properties looking to provide wireless coverage, Telkonet’s systems can be used to feed WiFi access points, which can be connected quickly and simply to any power outlet.
Series 5 Comparison “With 209 sites and limited numbers of IT technicians, we needed a reliable, plug-and-play system that was easy to install, maintain and operate. With Telkonet’s solution, we demonstrated that our own IT staff and contract electricians could install the system…”
Steve Custer, Supervisor CCTV/LAN Networking and A.V. Repair, Hillsborough County School District (SDHC)
Telkonet iWire System
The Telkonet iWire System is a robust networking platform that protects your investment by providing for today’s technologies and expanding for future technologies and applications, with many key benefits.
Low cost – Significantly less expensive than rewiring a building
Quick installation – Completed from hours to days, without construction or disruption
Secure – Data is encrypted and secure from outside intrusion
Hybrid – Delivers wired, wireless or a hybrid solution
Reliable – Patented PLC technology for continuous network connectivity
Scalable – Add users by adding more Telkonet iBridge units
Convenient – Network access at every electrical outlet in every room
Flexible – Supports any device or application using Internet Protocol
Robust – Remote monitoring and management
Compliant – FCC Part 15, UL60950 Listed, and CE approval
Plug-and-play – Easy to connect to the Internet without drivers or software
Applications supported by Telkonet’s PLC system include, but are not limited to: HSIA, local area networking, VoIP phones, video conferencing, closed circuit security surveillance, digital signage, substation monitoring and a host of other information services.
The Telkonet iWire System is used by a wide variety of customers, including:
PLC Product Components
Telkonet’s systems comprise a set of compact building blocks – the Telkonet Gateway, which connects via a router to the site’s external broadband feed, and a Telkonet Coupler that interfaces with a building’s electrical distribution panel. A further unit, the Telkonet eXtender™, can be connected to the Telkonet Coupler to provide additional reach for multi-building sites. To access the Internet, a user simply connects their laptop into a Telkonet iBridge unit.
Telkonet Gateway™ | The "brain" of the system, the Telkonet Gateway converts IP connections to a PLC signal and distributes PLC to the Telkonet Coupler. Through a web or CLI interface, the Telkonet Gateway allows management and configuration of the other Telkonet components. Each Telkonet Gateway supports up to 63 Telkonet eXtenders, 1,023 Telkonet iBridges (users) and up to 4,096 Ethernet endpoints. | |
Telkonet Couplers | The Telkonet Coupler takes the PLC signal from the Telkonet Gateway or Telkonet eXtender and injects that signal into the in-building electrical wiring. Installation of the Telkonet Coupler requires a licensed electrician to meet National Electric Code (NEC) and local electric code standards. Also comes in a model with integrated disconnect switch. | |
Telkonet eXtender™ | The Telkonet eXtender provides additional reach and scalability for networks that cannot be properly covered by a single Telkonet Gateway or multi-building environments. It can be used with wireless radio or wireline networks. | |
Telkonet iBridge™ | The Telkonet iBridge enables a user to connect a computer or IP device to the PLC network. It contains a "test" function to determine the PLC signal strength and has an RJ45 user port connection. |
Telkonet Series 5
Setting unprecedented performance levels for security, speed, QoS and capacity, the Telkonet Series 5 200 Mbps system takes PLC to a new level as a viable networking option for high performance, critical applications, including digital video surveillance, implementations in the utility substation environment, and harsh outdoor commercial installations. Telkonet Series 5 delivers a range of significant performance advances, including the following.
PLC Product Components
Telkonet’s systems comprise a set of compact building blocks – the Telkonet Gateway, which connects via a router to the site’s external broadband feed, and a Telkonet Coupler that interfaces with a building’s electrical distribution panel. A further unit, the Telkonet eXtender™, can be connected to the Telkonet Coupler to provide additional reach for multi-building sites. To access the Internet, a user simply connects their laptop into a Telkonet iBridge unit.
Telkonet Gateway™ – AG5 | The Telkonet Gateway is a remotely manageable network interface that converts Ethernet connections to a power line carrier signal and transmits the signal to the Telkonet Coupler. The Telkonet Gateway allows management and configuration of the Telkonet Series 5 via a web browser or Telnet command line interface. | |
Telkonet Couplers – MVC-200 and DPC-200 | The Telkonet Coupler is wired to the AC or DC low-voltage bus and connected to the Telkonet Gateway with a coaxial cable. The Telkonet Coupler takes the power line carrier signal from the Telkonet Gateway or Telkonet eXtender and injects the signal into the AC or DC electrical wiring. The Telkonet Coupler is also available with an integrated disconnect switch (coupler breaker). | |
Telkonet eXtender™ – AX5 | The Telkonet eXtender provides additional power line carrier signal reach and scalability for networks that cannot be covered by a single Telkonet Gateway. | |
Telkonet iBridge™ – AB5 | The Telkonet iBridge is wired to the AC or DC supply at each point requiring a communications interface. The Telkonet iBridge recovers the power line carrier signal and converts it back into an Ethernet or serial connection for the devices or applications. It contains a test function to determine the power line carrier signal strength. |
The EthoStream Gateway Server (EGS) product line of gateway devices deliver wired or wireless high-speed Internet access and a hybrid solution, integrating quickly and easily with any combination of WAN connections, including T1, DSL, cable modem, fiber and wireless connections. Our comprehensive range of turnkey, standards-compliant gateways meet the requirements of all major hospitality franchises and support a variety of applications, such as VoIP, printing from rooms, surveillance, and point-of-sale terminals.
We provide a complete line of related components, including wireless access points and bridges, Power-over-Ethernet devices, Ethernet switches, DSL equipment and digital video recorder (DVR) equipment, helping you to integrate all of the necessary products into a comprehensive solution.
EthoStream’s support center is directly integrated into the EthoStream Gateway Server and the web-based Telkonet CENTRAL, giving our dedicated, in-house support team and property management real-time visibility into a property’s HSIA usage and data, as well as ISP status. EthoStream leads the hospitality industry in providing innovative, standards-compliant customer solutions and support. Our proactive, responsive, knowledgeable customer support ensures guest satisfaction and retention.
EGS Product Comparison
The EthoStream Gateway Server line of gateway devices provides a simple all-in-one solution for Internet access within a commercial public-access network, while creating a productive work environment and end-user satisfaction.
“This (EthoStream’s Remote Management Console) is an invaluable tool, enabling us to access and monitor all our properties and Internet users from a single location. It is exactly this sort of innovation that puts EthoStream on a different level to other vendors, and is behind our selection of its technology as our preferred option”.
Jeff Henschel, Assistant VP of Technology, Destination Hotels & Resorts
EthoStream Gateway Servers are providing HSIA to more than 2,400 properties, servicing more than 1.9 million users per month, including:
Chairman of the Board
Warren V. "Pete" Musser, 81, has served as Telkonet's chairman of the board since January 2003. Mr. Musser has taken more than 50 companies public during his distinguished and successful career as an entrepreneur. He is currently the managing director of The Musser Group and chairman emeritus of Safeguard Scientifics, Inc. Mr. Musser's distinguished affiliations also included: director of CompuCom Systems, Inc., director of Internet Capital Group, Inc., vice chairman and director of Nutri/System, Inc., vice chairman and director of the Eastern Technology Council, chairman and director of Economics PA, and vice president of development at Cradle of Liberty Council, Boy Scouts of America. Mr. Musser received a BS degree in Industrial Engineering from Lehigh University.
President & Chief Executive Officer
Jason Tienor, 33, is the president and chief executive officer of Telkonet. As the former president and CEO of EthoStream, Mr. Tienor co-founded and grew the HSIA vendor to become one of the largest high-speed Internet providers to the hospitality industry in the nation. Prior to EthoStream, in 2000, Mr. Tienor was co-founder of a Milwaukee-based IT consulting firm. Mr. Tienor received a BBA in MIS and Marketing from the University of Wisconsin – Oshkosh and an MBA with an emphasis on Computer Science from Marquette University.
Chief Financial Officer
Rick Leimbach, 39, is the chief financial officer for Telkonet. Mr. Leimbach joined Telkonet in January 2004, and was appointed as vice president of finance in 2006, and then CFO in December 2007. Prior to Telkonet, from 2001 to 2004, he was the financial controller at UltraBridge, an applications solution provider, headquartered in Maryland. Mr. Leimbach joined the company at the start-up stage, tasked with building up the financial organization. From 1998 to 2001, Mr. Leimbach was corporate accounting manager at Snyder Communications, Inc. – a global organization focusing on design, development and implementation of value-added outsourced marketing services. Rick was involved with consolidating the group's extensive operations and working with the SEC. Mr. Leimbach held various positions within public accounting firms, including the Reznick Group and Wolpoff and Company in Maryland from 1991 to 1998. He holds a degree in Accounting from Towson University, Maryland.
Chief Operating Officer
Jeff Sobieski, 32, is the chief operating officer for Telkonet. From December 2007 to June 2008, Mr. Sobieski served as Telkonet’s executive vice president, energy management. Mr. Sobieski joined Telkonet in March 2007, following the acquisition of EthoStream, where he was CIO. As the former CIO of EthoStream, Mr. Sobieski co-founded and grew the HSIA vendor to become one of the largest high-speed Internet providers to the hospitality industry in the nation. Prior to EthoStream, in 2000, Mr. Sobieski was cofounder of Interactive SolutionZ, a Milwaukee-based IT consulting firm, and from this gained experience in the telecommunications and insurance industries. From 1998 to 2000, he was involved in consulting and system development projects, including the project lead on developing a new software package for GE Medical, and software tools development for North Western Mutual Insurance. Mr. Sobieski received a BS degree in Computer Science from the University of Wisconsin-Oshkosh and his MBA from Marquette University.
Vice President of Global Sales
Jeremy Griesbach, 34, is the vice president of global sales for Telkonet, joining the company in October 2007. Prior to Telkonet, from 2001 to 2007, Mr. Griesbach was the director of business development for a Midwest regional accounting firm, Virchow Krause, focusing on building the tax services group that specialized in state and local use tax, tax credit and incentives. From 1999 to 2001, Mr. Griesbach was business development manager for Metavante, a financial services and software support company. He holds a BS degree in Marketing from Upper Iowa State University.
Vice President of Hospitality Operations
Matt Koch, 31, is vice president of operations for Telkonet. Mr. Koch joined Telkonet in March 2007, following the acquisition of EthoStream, where he was a systems engineer from 2004 to 2007. Prior to EthoStream, from 1998 to 2000 and from 2001 to 2004, Mr. Koch was a system administrator for Geneva OnLine, a regional Internet service provider specializing in wireless broadband Internet access, managing system administration and integration for web hosting, billing systems, and workflow automation. In 2000, Mr. Koch was a system and network administrator consultant in the Silicon Valley for various companies, including Sun Microsystems, Uptilt, and SalesCenter.com, a web-based sales team automation system. He received a BS degree in Business Administration in Management Computer Systems from University of Wisconsin Whitewater.
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