Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
OT. Mortgage defaults driving consumer spending? Here's an interesting article:
http://finance.yahoo.com/news/Mortgage-Defaults-May-Be-cnbc-1964280202.html?x=0&sec=topStories&pos=6&asset=&ccode=
It's all the authors opinion, but it would be a kicker if it was true.....$3.8 Billion/month being spent by people on consumer goods (instead of paying their mortgage payment). It's the new way to finance the economy off of the housing market!!
TELT...new contracts awarded in 2010
Backlog from 10K: The Company's backlog at December 31, 2009 was approximately $9,547, as compared to $17,181 at December 31, 2008.
Since the company depends a lot on on the $2.5B school e-rate program, I have been researching the e-rate program extensively. The fiscal year for the awards starts approx. May 1rst and goes through April of the next year. Money is released in "waves" on a weekly basis. Here's a history of the award numbers (on an annual basis) for the state of New York (the New York Department of Education made up 50% of their revenue in 2009):
http://www.e-ratecentral.com/us/stateInformation.asp?state=NY
GOOD NEWS: Some recent awards that TELT has received since the stated backlog date of December 31rst, 2009:
On February 2, 2010 Teltronics was awarded a $7.2M contract from the New York Department of Education for "internal connections". This money was awarded in wave 39.
http://www.e-ratecentral.com/us/reports/frnDetail_all.asp?v=&frn=1913531&ste=NY&fy=2009
On February 2, 2010 Teltronics was awarded another $3.4M contract from the New York D.of E. for "internal connections". This money was also awarded in wave 39.
http://www.e-ratecentral.com/us/reports/frnDetail_all.asp?v=&frn=1913535&ste=NY&fy=2009
Why didn't the CEO mention these? Who knows. This is also the same company that didn't put out a pr for earnings till the 3rd Q of 2009 (and only then after shareholders bitched at them).
Both of these awards were part of the 2009 program (remember, it extends to April 2010 and isn't based on normal calendar). For definitions on the form of "Service Start date:471" (the initial application date), FCDL date (Fund Commitment Decision Letter), and the "Service Start date:486" (the date the provider of the service is paid) see the following:
http://www.georgialibraries.org/lib/erate/ERate_Discounts.pdf
This information all comes from the site listed below: (This should allow those that follow TELT to know when it is awarded major contracts through the e-rate program). Note: They have already submitted for 5 awards for their yearly maintenance contracts (ICM: Internal Connections Maintenance). As the 2010 year begins there should be many more I.C. awards (internal connections) received.
http://www.e-ratecentral.com/us/reports/utilizationSummaryChart.asp?typ=spin&ste=NY&ky=143007323
Dave
TELT....obviously with the New York Department of Education (the largest school district in the country) making up 50% of revenues in 2009, the e-rate funding for schools and libraries is very important to TELT. The good thing (as alluded to by CEO) is that e-rate funding for 2010 includes, for the first time, the eligibility of funds to be spent more freely on VOIP. The first wave of funding should be going out the end of April or so.
http://www.eschoolnews.com/2009/12/04/2010-e-rate-filing-window-opens/
Teltronics "Cerato for Schools" should be able to get some of that money.
http://www.teltronics.com/Cerato_IP.asp
especially their 20/20 equipment which is high-margin: http://www.teltronics.com/20-20_Overview.asp
True FL Native...TELT...uncertified shares: Here's an article from another company (that's on the NYSE) explaining the change in their bylaws to allow uncertified shares and why they did it (so they can do direct registration). I'm sure this is the same reason why TELT did it. "direct registration" is a requirement for major stock exchanges ( 2007 Nasdaq put out a statement saying that "New Rules Require NASDAQ-Listed
Companies To Be Eligible For A Direct Registration Program By January 2008")
"Stockholders of MarineMax Inc. will be able to more easily make trades, following action by the company's board of directors.
Effective Nov. 7, the board amended the company's bylaws to allow it to issue uncertified shares of its common stock, according to a filing Friday with the Securities and Exchange Commission. That allows MarineMax to participate in the direct registration systems administered by The Depository Trust Co.
The direct registration system allows stockholders to have shares of MarineMax registered in their names, without the issuance of physical certificates, and gives stockholders the ability to electronically transfer shares to brokers in order to make trades without the need to transfer physical certificates, the filing said.
Stockholders still can get stock certificates if they request them in writing."
MarineMax (NYSE: HZO) is a Clearwater-based boat retailer.
Yvonne...wicked tomato...she probably hates her job lately and needed the day off from the stress. I don't blame her. She knows that a lot of people have lost money based on the actions of her bosses. Plus she is probably worried that if the company keeps going down it's current path than she won't have a job soon either.
TELT..hweb2..it's nice to know that if TELT has another solid quarter than there is a good chance some bloggers will post about it. The more eyes on the little company the better :0)
Dave
TELT...the 50 day moving average is now around $1.46 and over 2.5 million shares have traded above $1.40 (yet the stock has only spent about 2 of those days above $1.55). It is in an extremely tight trading band.
They are reportedly about to launch a new Call Center/Recording product soon.
As far as growth:
--- unified communications (merging IP telephony, conferencing and collaboration, messaging and other forms of integrated information exchange) for mass notification, fire/security, and voice communication is rising quickly. A new ABI Research study predicts that the UC market will expand rapidly to nearly $4.2 billion in 2014 from the market’s size was just $302 million in 2008.
---Why the UK business is growing so fast: Financial institutions in the UK will soon have to record and store telephone conversations under new regulations introduced by the Financial Services Authority. From March 2009, companies will have to record all telephone conversations and electronic communications relating to client orders and the conclusion of transactions in the equity, bond, and derivatives markets. Hedge fund managers, stockbrokers, dealers and traders will all have to record their calls.
TELT...being chosen as the "#1 most picked stock" in the latest VMC contest may have helped the volume so far today. At 90K+ shares traded it's the highest volume since 3rd week of November. (Hasn't moved the price up much though). The nice thing about the last month and a half (since 3rd Q earnings were released) is that there will be a lot of eyes watching to see what is reported for the 10K in March.
Dave
TELT..$1.56..highest close in 28 days. Nice to see the price above $1.50 all day (20K shares traded).
TELT...new product launch...I know some people who don't like the fact that Teltronics Twitters about stuff, but they ARE in the communication services/hardware business of keeping businesses connected to their employees and clients. So whether you like it or not, here's the latest:
"product launch activities this morning! Happy Wednesday"
Maybe there is a need for a newer larger facility as their business model (that focuses on higher margin products/services domestically and internationally) moves forward. Probably will be another pr soon.
Dave
LT_Matt...The dollar defintely strengthened on the jobs report out of fear of an interest rate hike sooner than later. As we all know, the S&P and the dollar have been trading in an inverse relationship for quite awhile.
Telt.ob.....more volume (regardless of price) equals more eyes following the stock IMO. If the company is truly is in the process of a turnaround in operations it's only a matter of time before the stock price reflects it.
If the company continues to put up 20 cent quarters then this is probably the cheapest stock (outside China) there is!
Wade..TELT..A negative book value isn't something that excites everyone, but they are making quick work of balancing out their shareholder deficiency.
4th Q 2008 balance = $ -9.17M shareholder deficiency (assets minus liabilities).
1rst Q 2009 = $ -8.9M
2nd Q 2009 = $ -6.8M
3rd Q 2009 = $ -4.6M
Management still has work to be done, but $14M in revenue for the quarter (the largest number in 5 years) while still cutting expenses(!) tells me that they are committed to turning this company around. It just needs time to play out.
Perhaps one day everyone will scratch their heads and wonder how they could have bought all they wanted at .60 cents after 2nd Q results and $1.60 or so after 3rd Q results. Cause if management continues to perform it won't be long before book value is positive and you won't be able to touch the company at this price.
Dave
TELT..Rev/Q for last 5 years:
1Q 04: 11.31M
2Q 04: 12.14M
3Q 04: 11.63M
4Q 04: 10.92M
Total for 2004 = $46.0M
1Q 05: 9.79M
2Q 05: 13.00M
3Q 05: 10.81M
4Q 05: 12.60M
Total for 2005 = $46.2M
1Q 06: 10.29M
2Q 06: 11.50M
3Q 06: 12.20M
4Q 06: 12.90M
Total for 2006 = $46.89M
1Q 07: 9.56M
2Q 07: 8.09M
3Q 07: 11.70M
4Q 07: 11.25M
Total for 2007 = $40.63M
1Q 08: 8.30M
2Q 08: 9.76M
3Q 08: 8.09M
4Q 08: 8.48M
Total for 2008 = $34.63M
1Q 09: 9.65M
2Q 09: 11.74M
3Q 09: 14.20M
Third quarter revenue of $14.2M was the highest in a long time at TELT. The companies emphasis on selling their switching gear internationally has definitely started to pay off.
Also, someone said that they spoke to the CFO and she commented that the 2nd and 3rd Q's are their strongest. I don't see a real pattern to 2nd and 3rd Q being that much higher than 4th Q (though I would say 1rst Q is their weakest). Will definitely be interesting to see how this continues to play out.
TELT....maybe the pr will help draw in more eyes to the company/stock. Definitely undervalued.
TELT...$1.95....nice follow up volume/price to yesterdays surge. The company should do well as more schools/hospitals/businesses around the world start/upgrade their mass notification systems. The H1N1 flu has definitely gotten a lot of them off their butt.
Dave
TELT...multi-bagger from here. No pr though?
TELT...hit $1! but the spread is such that if earnings aren't solid it'll be tough to get out of. On the other hand, if earnings ARE solid, it won't be available for anywhere near $1.
Dave
TELT....95 cents now....sorry Bobwins but unless the quarter is a bomb I don't think you'll be getting your shares back at 0.65 cents.
If the company is really working on "multiple pr's" then I assume one of them is probably going to be the quarterly results. If that is the case I'd assume them to be solid :0)
Dave
TELT...Bobwins...LOL!..I was all happy that it went to a new 52 week high and then was surprised at the sell at $0.64. Understandable mistake---I've done it a few times myself :0)
Dave
TELT....future press releases soon.....from the company's twitter page last Friday......
"Working on multiple press releases on this lovely Friday afternoon. More information coming soon 12:12 PM Oct 30th from web"
http://twitter.com/Teltronics
Dave
TELT....new headquarters....Wednesday, October 28, 2009
The Teltronics Headquarters has Relocated!
After many years at the same address, the team at Teltronics is excited to inform you about our new headquarters address. The company has re-located to a modern 51,520 square-foot manufacturing/distribution facility in Palmetto (20 minutes North of Sarasota).
New Address: Teltronics, Inc., 2511 Corporate Way, Palmetto, FL 34221
http://ideasthatcommunicate.blogspot.com/
Dave
TELT....The company likes to use Twitter. Here's their latest messages
# Marketing Research...Excited for the many possibilities for our business 5:22 AM Sep 16th from web
# More marketing research today! Finalizing some projects 5:21 AM Sep 18th from web
# It's going to be a busy week at Teltronics! 5:30 AM Oct 20th from web
# Excited for yet another product launch in the works...great things happening here at Telt! about 13 hours ago from web
http://twitter.com/Teltronics
Take it for what Twitters worth, but I think the company is continuing to make progress.
Dave
TELT...Hank...maybe the stock is finally getting a little respect! Nice to see it hit the 70 cent barrier :0)
Dave
Wade..TELT...your desire for a little increased liquidity has come about a bit.....volume has been a somewhat better the last couple days. Definitely holding solid in the high .50s/low .60s.
Hoping their marketing efforts (and expense reductions) continue to pay off for the bottom line. Don't expect a repeat of last quarter's numbers (that'd be way to nice), but am looking for them to continue to run positive results.
Dave
TELT....Wade....thanks for passing along the info. As long as the company is committed to keeping expenses down I think it is just a matter of time before they clean up their balance sheet and get investors to notice them. They have a ways to go to prove themselves but at 55 cents the potential multi-bagger that could result from it all is worth the risk IMO.
Dave
OT...2morrowG....forget the presenting companies---too bad we weren't all invested in Rodman & Renshaw (RODM)!! Another 52 week high today.
EDAC and SIF....upward movement in both small aerospace stocks recently. If the "rumor" that Boeing will finally fly the 787 by end of November/early December is true than I see a lot of interest flowing back into the sector.
That's a big "IF" though on the 787.
Dave
WEMU...mandjb...hopefully with their new auditors this will be the last time they are late. I expect on Monday that they will announce when their cc call will be. It'd be nice to get an update on the possible Nasdaq listing along with a better insight to how their solar division is going.
Dave
OT: TRTN. 44 posts today discussing TRTN in one fashion or another (original post, response or rebuttal). I think that is another record set on the Board for 1 day! What makes it even more impressive is that only ONE person on the whole board owns it!!
OT: Zardiw---12 posts in 41 minutes. That might be a new record for this board. Definitely one I'm already tired of.
WEMU just hit $7!.....Price and volume keep plugging along. Can't wait for quarterly report to be released to see if growth potential is finally being realized.
Dave
Hweb...EDAC...I'm not going to lay judgment on the new acquisition until I can read the 10Q. I like where EDAC should be able to exceed $20M/Q in revenue, but they definitely need to get their margins back up. It will be interesting to see if they can reduce costs and leverage the customers to increase organic growth more.
The big thing with EDAC that is hurting them is the delays in the Boeing 787 and 747-8 (both are using the Ge GEnx engine which EDAC does work on). Once Boeing gets their act together, EDAC will have business lined up for 15 years.
I'm always a bit disappointed with management in that they release earnings so late in the day, never explain much in their pr's, and never do conference calls. It's tough figuring out what is actually happening with them.
I think in the long run EDAC is a great investment. In aerospace, I also like LMT under $75 (and selling covered calls against it as a side money maker) and CVU. I only own EDAC (and not the others) because I like to torture myself!!
I did sell Zagg though (rode it from sub $1 and sold above $7). Bought a bunch of WEMU with the profits.
Dave
EDAC reports quarterly results.......
http://finance.yahoo.com/news/EDAC-Technologies-Reports-prnews-2549570507.html?x=0&.v=1
Dave
WEMU...2morrowsgains...it's hard getting shares. If the company does what they are projecting it will be even harder to get shares. I'd rather have them on the Nasdaq than the Amex, but either is better than the OTC market.
Could be a nice run in the next 1 1/2 years! Always a risk, but the fact that they brought in independent directors, a new auditor, and want to get to a major index makes me think that management knows they have great potential and want to be recognized as legit.
Dave
Small cap stocks lately.......Is it just me or does anyone else notice that interest in small cap stocks seem to be waning? I'm watching a lot of stocks drop in the last week or so on very low volume (i.e. buyers disappearing again). Even if you want to sell it's hard not to push the price down on yourself. Reminds me of the beginning of the last big move down in the market.
ZAGG....is there any stopping it?!? $5.40 It's already the best investment I've ever made % return wise. A lot of the future good news is priced in IMO (2nd big box retailer announcement, future Nasdaq listing application, Appspace.com release) but it could still get a frothy move upward in this over-inflated stock market rebound. If DDRX can go upward forever, any of our microcap stocks can do the same thing if the stars a line just right.
Dave
EDAC...Newly announced MONSTER backlong! $135M with new orders and from recent acquisition (up from $50M backlog at the end of last quarter). Acquisition was for $10M cash so no shareholder dilution. Not bad for a company with a market cap of $14M.
http://finance.yahoo.com/news/EDAC-Technologies-Announces-prnews-15432370.html?.v=1
Dave
SIF...R59....nice move above $10 today. I'm starting to see real interest moving back into the aerospace stocks. If Boeing can finally get their 787 up in the air by the end of month, I think we will start to get institutional interest looking back at the sector more.
ZAGG....interest in the stock is definitely picking up. Today's volume (in the first 90 minutes) is more than most day's total volume. Hit 52 week high.
Could get a nice continuation in the upward momentum of the stock price before/after earnings next week, though the stock is already up huge since January.
Dave