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LOL...somebody still hanging on to that "impressive" cc.
I guess the smoke hasn't yet cleared his neighborhood.
This has become a very quite board. Does anyone have any info or updates on all of the promises made in the conf. call. Were any presentations made the insts. or other investers? Same old stuff, a lot said and nothing done!
I agree with you but you also have to consider that many of the banks sell that debt to other instituions so they may not be on the hook for as much as people think. I think we saw many of the investment houses get crushed because of this. GS is one of my favorites and it has gotten killed. I am holding it because I think when the waters clear they are going to be ok, from what I have read that do not have as much exposure to that debt as other institutions.
I think BAC is winner as are many of the financials but the bottom is not in for either housing or financials, good time to nibble though.
C is a financial stock...not a housing stock. C is talking about the delinquencies in their current portfolio extending beyond their subprime portfolio. Most lenders, like C, WFC, etc are tightening the screws on their subprime lending, which will mean that some people won't be able to get into homes that could a year or so ago.
That is where it will impact the "housing" market. That is why the financial stocks are a little more concerning to me than the housing stocks. The housing stocks will take a hit to their bottom line, but they should still be turning annual profits whether they build 200 houses or 20,000 houses. I would not jump into C, as they are not as well positioned and diversified as some other financial companies that are better able to ride out a downturn in the mortgage side of their business (a WFC for example).
Anyway, the typical housing stocks have been so hammered recently, and unjustifiably so in many respects, that I think this is the best time to jump in on a select few. Example, MTH. Already making a profit, which is more than I can say for my TKO holding.
I've had him on ignore now for a couple of weeks and am much happier when I log on and don't see his name. But unfortunatly I still see the regulars who still have my respect answering him and that is dissapointing.
OT as we don't have much to talk about re TKO, except it's been up a whopping two days in a row. A slight upward chart reversal today, but take that with a grain of salt. Nobody's jumping up and down here, that's for sure. I do see buyers lurking for the first time in a long, long time. Things may be looking up.
I don't think this housing thing has bottomed out by a long, long shot. Countrywide in their conference call today (which lasted over three hours with numerous questions) said that it's not just sub-prime that's falling apart for them but some prime loans as well. This housing downturn is for real and will take YEARS before it rebounds.
If anyone is interested in making money the old-fashioned way, MO and BAC are well off their highs, with more room to the down side (my opinion only). Both pay great dividends (higher than CD rates for the most part). They also have good long term potential for appreciation. Disclosure: I have held MO for eight plus years.
BSD
I have also put him ignore and life is much improved without his negative remarks. The stock is also doing better and will continue upward at a faster pace if everyone turns him off.
Financials have lower to go as well as Housing sector. I nibbled into some GS today.
I have done no research into any housing stocks so I wont comment on it, I just think they are done bottoming out. If you plan on hold, you will eventually be right. Buying when everyone else is scared is generally the right move. I just cant do it yet.
GLL, I have put him on ignore and it was the best thing I have done in a long time. Why do you even bother to answer him as he gets paid for every response he creates.
Again...I disagree...MTH is a very highly regarded company that is set to excel over the long run. No quick bounce needed. It is definitely a long play. It may not have bottomed out yet, but I think it is nearly impossible to pick bottoms in this environment. I will sit my money there for the next couple years and make a bundle off of it, I'm sure.
I'm not sure I would jump into the Financials yet. I don't think the bad news for the economy is over, and that will hurt them in the end.
Again, in the long run, I think overseas in where the money will be.
RBT, we agree on everything, especially the relative weakness in the dollar. It's going to hurt us in the end... drive near term inflation and eventually diminish profits over the long haul.
Hope you play it for a quick bounce, they have earnigns tommorow. You realize (it looks like on their profile) they cater to first-time home buyers right? Hope you get a bounce and make some money, I would not want to hold it past 10am tommorrow though. Best of luck on that.
Correction was needed, today seems panicky though.
I dont have a strong handle on economics but I see a few things that are concerning.
1. Yes earnings reports have been strong but comanpies look like they sandbagged earnings to beat the number. Just look at AAPL. Great company, I think they go to $200 but they just did .92 this quarter at set next quarter at .64 or whatever? come on that is silly, they sandbah earnings and beat every quarter. Anyway, earnings have been ok but not blow off the top.
2. Dollar/Yen is baddddddd. The Yen rising against the dollar is bad bad bad. No one is going to know the results of that, if any. If the Yen rises, all that cheap money is gone. That removes liquidity and positions have to be unwound. I dont think anyone has handle on it. Then again, it could amount to nothing and be all talk.
3. Housing market is disgusting. It is showing no signs of life and pulling everything down the toilet with it. Finanicals are getting crushed. It is crap, they are still good companies, I would be a buyer today of them, if I didnt have my modest account tied up in other bullsh*t.
4. On the plus side, I think the global outlook looks great, it seems like so mnay of our US based companies are set to grow with this global growth explosion. Traditional blue chips and conervative plays have turned into growth plays becuase of the foreigh exposure.
Today is nice day to buy being a position in a company you like. Financials would be my first pick.
That is my crappy opinion, sorry so long.
Hate to disagree with you chaps, but I did pull the trigger. On only one, so far. I just bought a boatload of MTH at under $19.35...watch and learn people.
FYI, today reminds me of Oct 1987's drop under Reagan. Very similar economic and political climates. It's a minor decline in comparison so far though.
Depends on whether we close above 2600 tomorrow. If we do, it's probable we'll begin a late summer rally into the fall like we did last year in mid-July. If not, we could over correct down to 2400 which spells problems in the economy for the next two years I'm afraid. It might be the head formation in a head and shoulders pattern, ratern than a correction in a bull trend.
I personally think the sell off at this point is way over done given the revenues and earnings being reported, and we should start to trend back up next week... although (insert caveat here the number of earnings reports that have exceeded expectations this quarter (52%) is less than last quarter (61%) which says things may be getting tougher in the global markets. I'm keeping a close eye on China's markets looking for signs of weakness in their expansion... so far no warning lights. Same with Europe.
How about your read on conditions RBT?
MLK,
You will be proved wrong shortly!!
Liked the disclaimer!!
GLL
Disclaimer:-
I am no friend of MLK, I do not know him, never have, never want to. I feel ashamed that by answering him I have put another $5`s into his piggy bank to add to his other fees.
I am not invested in TKO currently and have no vested interest in whether the PPS goes up or down, MLK may have other reasons for posting.
I am away on holiday on Monday night, will be sitting round the pool in the villa by lunchtime Tuesday and it is expected to be 40c next week in Mallorca and I can`t wait!!
now up $42K again..I sold pretty much all of my stock and had put it here..
Just remember if their products gets mandatory on all the Trucking Companies both here and Canada then I will be sitting on a diamond mine not gold mine with my 111,606 shares..
CEO and 3 other people are scheduled to meet with the Department of Transportation..
Yeah I hear you on that Win, I think your trying to catch a falling knife buying homebuilders but it is tempting.
I haven't see volatlity like this a long time. Today is certainly a wake up call.
What is your take going forward?
IMO you're going to see new housing starts decline through 2009. New and existing home sales here in the midwest are non-existent. I wouldn't touch home builders for at least a year or more. Way too much inventory. On the otherhand, TKO is looking good for a run back into the $1.90's now. Showing great strength given todays collapse.
MLK, you missed your selling opportunity six weeks ago, and your buying opportunity 3 days ago. Why do you hesitate... do you doubt your omnipotent abilities? Sad to see a god falter.
I actually agree with you, but I dont think the time is just yet on the homebuilders. I almost shorted Beazer off the open but I held back, kicking myself now. At some point I will buy the index but not yet. I think there may be some good opportunities overall in the market but we may not be done yet. Need to shake some more people out first. I am going to look at the financials first, they are getting hammered today. GS MS LEH MER, all down 5%? That is sick, Those are solid company and this pullback is unjustifed, Those stocks are all trading at PE around 10!!!!
I don't have much to complain about on the market...the market could have a few weeks of action like today, and I'd probably still be up for the year. No complaints there.
In fact, I'm trying to figure out when a good time to jump into some of these stocks that are getting hammered. There are going to be some great plays on the homebuilder side in the next few months, I think. They are just getting slammed, yet some are quality companies that will most certainly be moving back up big time at some point. I'm glad I haven't pulled the trigger yet, but I am thinking about doing it soon.
Come on MLK your better than that. Give us something a little more intelligent to complain about.
Are you watching the markets today? You have no comment on that?
MSHI is about to go below $1.00 as I said it would. I guess that cash cow has delivered its last bucket of milk. If TKO would have listened to MLK, they would have divested themselves of much of its MSHI stock and be sitting on a lot of cash right now. As it stands, TKO has no money and can't get it realistically from its MSHI holding anymore.
Meanwhile, TKO still flounders in the mid $1.60s and everyone here is acting like they struck gold.
Hello?
OT... Hope you got rid of that crap it's dumping just like I told you it would do...what goes up must come down.
lighten up big guy, life will be much better!
Am I excited to be trading where we were at essentially a week or two ago? Not really.
And, I won't be excited if TKO trades at $2.00 either, as I will still be losing money.
Are you one of those people that is excited just to see a green day, despite the fact that TKO has just given you 10 straight red ones?
You people really do need to get a grip and lay off the kool-aid.
We are trading higher MLK!!! Are you excited?!
Whatever.
I just visited the AMEX website...any clue as to why TKO still appears on their list of noncompliant companies. The list is supposedly current through yesterday, but hasn't been updated. Hmmmmm.
It is painstakingly clear that GLL has no idea what is coming out when. So, that is that.
DISCLAIMER:
I may or may not work for a sweatshop. I may or may not have a large position in TKO. I did not have relations with that woman...GLL. GLL, I know of Warren Buffet. Warren Buffet may or may not have been a friend of mine. GLL, you are no Warren Buffet.
Looks like tomorrow, tomorrow came after Wednesday!!
Maybe more this week, only a couple of days to wait!!
Not invested so no vested interest.
GLL
Disclaimer:-
I have no affiliation with TKO, it`s employees, management nor its` Public Relations Companies. I invest purely on my own Due Dilligence and/or from my broker and I understand I can make or lose monies on my investments.
I confirm I live in the uk and I am in no way connected to the American Stockmarkets, Nasdaq, Amex e.t.c. and nor am I in any way affilliated to any brokerages either here in the UK or the States. I confirm my line of business here in the uk is not connected to any money markets, stock brokers, normal brokers and all monies I have invested in America are purely mine from savings, property sales and uk property investments. I have recommended several business colleagues and acquaintances to my broker, of which all are not in anyway connected to the financial industries.
What did I doubt?
Post when bored...I like to take breaks from my duties at the sweatshop now and again. I just like to check how my stocks are doing at the beginning and end of each day. Usually I'm happy until I turn to the TKO page.
Plus, I have the greatest of time rubbing in the fact that I nailed this...everyone doubted, including you my friend. I NAILED IT!!! I love it.
Do you specifically wait for down ticks to post, or just post when bored?
As I said...heading back down. Do you people actually watch this stock and my comments...or are you shaking a magic 8-ball?
You people are so funny. You get so mad that I was right. I said $1.50...we got $1.50. I said by July 18th. It happened just a few days later. Uhhh...hello?
Here we go again...the pattern is starting to show...nice run up midday, but we are about to give most of it back. This stock can't follow through on anything.
Finally, a little buying interest here the past two days. Patient bidder but decent-sized bids.
It even shut up old Knobbyknees/Fwoppy/MLK aka the poor creature. He finally ran out of material and fell back on his old Stocklemon posts from the days of yore on Yahoo (before he was banned).
BSD
Good morning, all....I have been without a computer since late Sunday afternoon, night when all heck broke loose on it! Part was my fault, of course, and part was my ISP fault---I have VISTA, and they tried to 'fix things' as though I had XP---gheez! The GEEKS ended up having to come to the house yesterday. AGAIN, and they ain't cheap! BUT! I am now able to get online, and I still can read...and I just read THIS!
First, let me say this...I recognized that my thinking is not stupid thinking, or fantasy-world thinking, when I read this announcement....I 'KNEW' there was more to the AMEX thing than just the BOD---and said so. After reading the AMEX requirements to stay listed with them, I KNEW there were other issues that we were not informed about. I also KNEW there was a problem with the options---especially when Musser got his divorce, and got the options back from his wife....and mentioned THAT as well.....and most thought I was full of beans...well...up! I WAS NOT playing baseball in a bowling alley....I was in the correct ball park. OK READ the whole thing:
latest on AMEX, (businesswire today)
"Telkonet in Compliance with AMEX Listing Requirements; Receives Warning Letter from AMEX
Telkonet, Inc. (AMEX: TKO), the leader in providing in-building broadband access over existing electrical wiring, today announced that it received correspondence from the American Stock Exchange (AMEX) indicating that it has resolved the continued listing deficiencies referenced in the AMEX’s letter, dated April 17, 2007. After reviewing the Company’s Plan of Compliance, which was submitted to AMEX on May 1, 2007, AMEX determined that the Company has taken appropriate action to bring it into compliance with Section 120 and 121(A) of the AMEX Company Guide.
However, after reviewing publicly available information and information provided by the Company, AMEX determined that the Company violated certain of AMEX’s corporate governance standards in connection with certain stock option grants made during fiscal years 2005 and 2006. In particular, AMEX concluded that during this time period, the Company made certain stock option grants that were not in accordance with the requirements of the Company’s shareholder approved Stock Incentive Plan. As a result, AMEX determined that the Company violated the AMEX shareholder approval requirements as set forth in Section 711 of the AMEX Company Guide, since the grants in question were not consistent with the Stock Incentive Plan as approved by the shareholders. AMEX noted in its correspondence that, for each of 33 separate stock option grants aggregating 1,550,000 shares of the Company’s common stock, the strike price of the option was less than the closing share price on the date of the grant in violation of the Stock Incentive Plan. AMEX also concluded that the Company did not properly account for the stock options granted at below fair market value and, therefore, did not present its financial statements in accordance with United States Generally Accepted Accounting Principles as required by Sections 134 and 1101 of the AMEX Company Guide. Based on the foregoing, AMEX determined that it was appropriate to issue the Company a Warning Letter in accordance with Section 1009 of the AMEX Company Guide.
Subsequent to the grants in question and prior to AMEX’s inquiry, the Company took remedial action to correct its deficient stock option granting procedure, including adopting formal measures to ensure the proper segregation of duties with respect to the granting, notification, approval and distribution of stock option grants under the Stock Incentive Plan on a going-forward basis. The Company also reviewed each stock option award granted during the periods in question with its independent auditors and concluded that the failure to properly account for these grants did not have a material impact on the Company’s financial statements during the affected periods and a restatement of the Company’s financial statements is not warranted.
After considering the foregoing remedial actions taken, and analyses performed by the Company, AMEX decided not to apply the continued listing evaluation and follow-up procedures specified in Section 1009 of the AMEX Company Guide. Therefore, AMEX will not seek to delist the Company from the AMEX nor will it require the Company to submit a Plan of Compliance with respect to the matters addressed in the Warning Letter."
'The Company also reviewed each stock option award granted during the periods in question with its independent auditors and concluded that the failure to properly account for these grants did not have a material impact on the Company's financial statements during the affected periods and a restatement of the Company's financial statements is not warranted.'
'Therefore, AMEX will not seek to delist the Company from the AMEX nor will it require the Company to submit a Plan of Compliance with respect to the matters addressed in the Warning Letter. '
I'll translate for you...no harm, no foul.
Thanks for the info. As soon as I read it I remember the anouncement. I hope GGBM still considers Tko the best fit for their new contract. We need all the help we can fet.
Well the warning from AMEX that TKO has screwed its shareholders doesn't come as a surprise to at least me.
Telkonet Inc filed on 07/25/2007 Company Filings
Table of Contents View Header Printer Friendly Complete Document
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
July 19, 2007
(Date of earliest event reported)
TELKONET, INC.
(Exact Name of Registrant as Specified in Its Charter)
Utah
(State or Other Jurisdiction of Incorporation)
000-27305 87-0627421
(Commission File No.) (I.R.S. Employer Identification No.)
20374 Seneca Meadows Parkway, Germantown, Maryland 20876
(Address of Principal Executive Offices)
(240)-912-1800
(Registrant's Telephone Number)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
--------------------------------------------------------------------------------
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On July 19, 2007, Telkonet, Inc. (the “Company”) received notification from the American Stock Exchange (“AMEX”) that the Company has resolved the continued listing deficiencies referenced in the AMEX’s letter, dated April 17, 2007. After reviewing the Company’s Plan of Compliance, which was submitted to AMEX on May 1, 2007, AMEX determined that the Company has taken appropriate action to bring it into compliance with Section 120 and 121(A) of the AMEX Company Guide.
However, after reviewing publicly available information and information provided by the Company, AMEX determined that the Company violated certain of AMEX’s corporate governance standards in connection with certain stock option grants made during fiscal years 2005 and 2006. In particular, AMEX concluded that during this time period, the Company made certain stock option grants that were not in accordance with the requirements of the Company’s shareholder approved Stock Incentive Plan (the “Plan”). As a result, AMEX determined that the Company violated the AMEX shareholder approval requirements as set forth in Section 711 of the AMEX Company Guide, since the grants in question were not consistent with the Plan as approved by the shareholders. AMEX noted that, for each of 33 separate stock option grants aggregating 1,550,000 shares of the Company’s common stock, the strike price of the option was less than the closing share price on the date of the grant in violation of Section 7(b) of the Plan. AMEX also concluded that the Company did not properly account for the stock options granted at below fair market value and, therefore, did not present its financial statements in accordance with United States Generally Accepted Accounting Principles as required by Sections 134 and 1101 of the AMEX Company Guide. Based on the foregoing, AMEX determined that it was appropriate to issue the Company a Warning Letter in accordance with Section 1009 of the AMEX Company Guide.
Subsequent to the grants in question and prior to AMEX’s inquiry, the Company took remedial action to correct its deficient stock option granting procedure, including adopting formal measures to ensure the proper segregation of duties with respect to the granting, notification, approval and distribution of stock option grants under the Plan on a going-forward basis. The Company also reviewed each stock option award granted during the periods in question with its independent auditors and concluded that the failure to properly account for these grants did not have a material impact on the Company’s financial statements during the affected periods and a restatement of the Company’s financial statements is not warranted.
After considering the foregoing remedial actions taken, and analyses performed by the Company, AMEX decided not to apply the continued listing evaluation and follow-up procedures specified in Section 1009 of the AMEX Company Guide. Therefore, AMEX will not seek to delist the Company from the AMEX nor will it require the Company to submit a Plan of Compliance with respect to the matters addressed in the Warning Letter.
The Company has issued the press release attached to this Form 8-K as Exhibit 99 in accordance with its obligations under Section 402 and Section 1009(j) of the AMEX Company Guide.
--------------------------------------------------------------------------------
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of Business Acquired.
None.
(b) Pro forma financial information.
None.
(c) Shell Company Transactions.
None.
(d) Exhibits.
99 Press Release, dated July 25, 2007
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TELKONET, INC.
Date: July 25, 2007 By: /s/ Ronald W. Pickett
--------------------------------------------------------------------------------
Ronald W. Pickett
Chief Executive Officer
Exhibit 99.1
For Immediate Release: July 25, 2007 NEWS RELEASE
--------------------------------------------------------------------------------
Telkonet in Compliance with AMEX Listing
Requirements; Receives Warning Letter from AMEX
Germantown, MD, Telkonet, Inc. (AMEX: TKO), the leader in providing in-building broadband access over existing electrical wiring, today announced that it received correspondence from the American Stock Exchange (AMEX) indicating that it has resolved the continued listing deficiencies referenced in the AMEX’s letter, dated April 17, 2007. After reviewing the Company’s Plan of Compliance, which was submitted to AMEX on May 1, 2007, AMEX determined that the Company has taken appropriate action to bring it into compliance with Section 120 and 121(A) of the AMEX Company Guide.
However, after reviewing publicly available information and information provided by the Company, AMEX determined that the Company violated certain of AMEX’s corporate governance standards in connection with certain stock option grants made during fiscal years 2005 and 2006. In particular, AMEX concluded that during this time period, the Company made certain stock option grants that were not in accordance with the requirements of the Company’s shareholder approved Stock Incentive Plan. As a result, AMEX determined that the Company violated the AMEX shareholder approval requirements as set forth in Section 711 of the AMEX Company Guide, since the grants in question were not consistent with the Stock Incentive Plan as approved by the shareholders. AMEX noted in its correspondence that, for each of 33 separate stock option grants aggregating 1,550,000 shares of the Company’s common stock, the strike price of the option was less than the closing share price on the date of the grant in violation of the Stock Incentive Plan. AMEX also concluded that the Company did not properly account for the stock options granted at below fair market value and, therefore, did not present its financial statements in accordance with United States Generally Accepted Accounting Principles as required by Sections 134 and 1101 of the AMEX Company Guide. Based on the foregoing, AMEX determined that it was appropriate to issue the Company a Warning Letter in accordance with Section 1009 of the AMEX Company Guide.
Subsequent to the grants in question and prior to AMEX’s inquiry, the Company took remedial action to correct its deficient stock option granting procedure, including adopting formal measures to ensure the proper segregation of duties with respect to the granting, notification, approval and distribution of stock option grants under the Stock Incentive Plan on a going-forward basis. The Company also reviewed each stock option award granted during the periods in question with its independent auditors and concluded that the failure to properly account for these grants did not have a material impact on the Company’s financial statements during the affected periods and a restatement of the Company’s financial statements is not warranted.
(more)
Contact:
Michael Porter
President
Porter, LeVay & Rose, Inc.
212.564.4700
mike@plrinvest.com www.plrinvest.com
Adam Mazur
Rubenstein Public Relations
212-843-8073
amazur@rubensteinpr.com
--------------------------------------------------------------------------------
After considering the foregoing remedial actions taken, and analyses performed by the Company, AMEX decided not to apply the continued listing evaluation and follow-up procedures specified in Section 1009 of the AMEX Company Guide. Therefore, AMEX will not seek to delist the Company from the AMEX nor will it require the Company to submit a Plan of Compliance with respect to the matters addressed in the Warning Letter.
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 and a host of other IT services. For more information, please visit www.telkonet.com.
Bentley,
go to www.telkonet.com
then click on 'Events/News..
click on 'News Releases'..
click on '2006'Archives'..
then click on the 'April 17, 2006 date which references GigaBeam..
Also can Google Telkonet.com and on my PC, the 2nd one down lists the GigaBeam and Telkonet-MST together.. It keys New York City's Roosevelt Island, Dated 5/11/2006.. Scroll down to 'Page 2' to the WIFI Hub & Digital Convergence in reference to GigaBeam..
It wouldn't let me copy & paste the links, as that would have been much easier.. I'm not sure if there are any more recent references to GigaBeam.. Hope this helps you!!!
24-Jul-2007
Unregistered Sale of Equity Securities
Item 3.02 Unregistered Sales of Equity Securities.
On July 18, 2007, Telkonet issued 866,856 unregistered shares of Telkonet, Inc. (the "Common Stock") to Newport Telecommunications Co. ("NTC") in connection with the acquisition of substantially all of NTC's assets by Microwave Satellite Technologies, Inc. ("MST"), the operating subsidiary of Telkonet's majority-owned subsidiary, Microwave Satellite Holdings, Inc. ("MSHI"). NTC, a New Jersey general partnership, provides broadband internet and telephone services at certain residential and commercial properties in the development known as Newport in Jersey City, New Jersey.
The Common Stock issued by Telkonet represented $1,530,000 of the total consideration of $2,550,000 paid by MST in the asset purchase. The balance of the consideration was paid in cash by MST. The Common Stock was valued based on the average closing prices for the Common Stock for the ten trading days immediately prior to the closing date. The total consideration will be increased or decreased depending on the number of subscriber accounts acquired in the asset purchase that were in good standing on the closing date. This number will be determined within 120 days of the closing of the asset purchase.
In connection with the asset purchase, MSHI has agreed to (a) either pay $1,530,000 in cash to Telkonet, or (b) issue to Telkonet unregistered shares of MSHI common stock equal to approximately $1,530,000 (based at a price per share equal to the lesser of (i) the closing price for MSHI common stock on the day of the issuance of the shares of common stock to Telkonet, or (ii) $1.00 per share of MSHI common stock), as consideration for the issuance of the Common Stock by Telkonet to NTC in the asset purchase.
The Common Stock was issued to NTC pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933 and/or Rule 506 of Regulation D promulgated thereunder on the basis that the purchaser is an "accredited investor" as such term is defined in Rule 501 of Regulation D.
Telkonet Inc filed on 07/24/2007 Company Filings
Table of Contents View Header Printer Friendly Complete Document
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
July 18, 2007
(Date of earliest event reported)
TELKONET, INC.
(Exact Name of Registrant as Specified in Its Charter)
Utah
(State or Other Jurisdiction of Incorporation)
000-27305 87-0627421
(Commission File No.) (I.R.S. Employer Identification No.)
20374 Seneca Meadows Parkway, Germantown, Maryland 20876
(Address of Principal Executive Offices)
(240)-912-1800
(Registrant's Telephone Number)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
--------------------------------------------------------------------------------
Item 3.02 Unregistered Sales of Equity Securities.
On July 18, 2007, Telkonet issued 866,856 unregistered shares of Telkonet, Inc. (the “Common Stock”) to Newport Telecommunications Co. (“NTC”) in connection with the acquisition of substantially all of NTC’s assets by Microwave Satellite Technologies, Inc. (“MST”), the operating subsidiary of Telkonet’s majority-owned subsidiary, Microwave Satellite Holdings, Inc. (“MSHI”). NTC, a New Jersey general partnership, provides broadband internet and telephone services at certain residential and commercial properties in the development known as Newport in Jersey City, New Jersey.
The Common Stock issued by Telkonet represented $1,530,000 of the total consideration of $2,550,000 paid by MST in the asset purchase. The balance of the consideration was paid in cash by MST. The Common Stock was valued based on the average closing prices for the Common Stock for the ten trading days immediately prior to the closing date. The total consideration will be increased or decreased depending on the number of subscriber accounts acquired in the asset purchase that were in good standing on the closing date. This number will be determined within 120 days of the closing of the asset purchase.
In connection with the asset purchase, MSHI has agreed to (a) either pay $1,530,000 in cash to Telkonet, or (b) issue to Telkonet unregistered shares of MSHI common stock equal to approximately $1,530,000 (based at a price per share equal to the lesser of (i) the closing price for MSHI common stock on the day of the issuance of the shares of common stock to Telkonet, or (ii) $1.00 per share of MSHI common stock), as consideration for the issuance of the Common Stock by Telkonet to NTC in the asset purchase.
The Common Stock was issued to NTC pursuant to the exemption provided by Section 4(2) of the Securities Act of 1933 and/or Rule 506 of Regulation D promulgated thereunder on the basis that the purchaser is an "accredited investor" as such term is defined in Rule 501 of Regulation D.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TELKONET, INC.
Date: July 24, 2007
By: /s/ Richard J. Leimbach
Richard J. Leimbach
Vice President, Finance
Good post, I have a question on GGBM. Can you tell when tko and ggbm formed a relatonship and what does the agreemet look like?
If you can direct be to a public announcement that would helpful. Thanks
OT - Yeah, I agree was a nice day given in context with the rest of the market. I haven't seen the S&P with a 30 handle down move too many times.
Market has been way overbought for a while with too many negatives completely factored out. This pull back is healthy and the volatility is healthy. I bought some QQQQ August puts this morning to hedge myself as I think we see more volatility this summer. Earnings season has not been great and the housing and financial sectors have been distasters.
Anybody follow AMZN, stock is unreal. Up another $10 after hours. An amazing short squeeze. The stock is trading at a P/E of about 150 now. Ridiculous.
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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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IMPORTANT/CURRENT NEWS
http://www.telkonet.com/newsroom/news_releases.php
RECENT FILINGS
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=4964217&doc=1&total=&back=2&....
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http://biz.yahoo.com/e/070510/tko10-q.html
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http://www.sec.gov/Archives/edgar/data/1094084/000101968706002646/telkonet_10q-093006.htm
SHARES as of June 30,2007 per Q2
OUTSTANDING SHARES: 66,806,986 million
RESTRICTED SHARES: 56,932,926 million
FLOATS: 58,310,000 million
SHARES OWN BY INSTITUTIONAL:10.45%
HOLDERS AS OF 03/14/07////AS OF 9/1-07
Institutions 40 Holders 38 HOLDERS
Mutual Funds 21 Holders 19 HOLDERS
Other Major Holders 48 Holders
STOCKCHART
[chart]stockcharts.com/c-sc/sc?s=TKOI&p=D&yr=0&mn=6&dy=0&i=p03399193280&r=9301[/chart]
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