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Unless I'm mis-thinking something here, given FITX's current $1.35 price, the investment equity portion of TKO's balance sheet has now increased over $10 million.
FITX is now trading on the OTCBB at $1.31, in a range of $0.91 to $1.32 so far. With TKO controlling ownership, it would be a hoot to see FITX higher priced today than TKO. That would validate TKO being undervalued by the market.
That's great news Walt. Thanks for sharing the information.
Hi EM...
His intellegence I can respect (and he is intellegent). It's his sarcasm and tongue in cheek inferences that are annoying. If his intentions were above board, he'd drop the sarcasm, and be a worthwhile contributor to the board's discussions.
Do you wake up on the wrong side of the bed all the time MLK? Did someone "short" your sheets? If you're unhappy with TKO's performance and don't think it has a future, then sell out and move on. You know as well as the rest of us, that the "China Syndrome" has caused another meltdown in the global markets, and today's drop of 4 cents is NOT the end of the world, nor in any way indicative of where TKO will be tomorrow. What is your current position in TKO? You seem to cause a great deal of aggravation on this board... perhaps you may find more suitable and sympathetic company back of the Yahoo board!
Maybe lower, but we got lots of support at 1.98 when we had that 700,000 share day last week. That's what convinced me to get back in. And now the technicals seem to be turning as well, and some MILDLY positive news is seeping out. The morning opening will tell if the news was received by the market positively. (TKO seems to have a built in lag time.) On the otherhand, in may open at 1.68 like you said despite the accuracy of my ouigi board prediction.
PSU...
I think we may be at bottom because of the technicals.
The 20 day MA has flattened and looks poised to go up. The momentum has already begun to move up after 3 months to the downside. Lastly, we've skipped off the bottom of the Bollinger Bands several days ago, and they have narrowed into a very tight range. If you follow candlestick signals, even AmericanBull.com says it may be a short term buy point today.
http://www.americanbulls.com/StockPage.asp?CompanyTicker=TKO&MarketTicker=AMEX&Typ=S
The only thing left is for the planets to align in Aquarious
I wouldn't exactly call it "long awaited news". Profitability on the otherhand would be long awaited news. I think we'll be back at $2.50 by the end of June if the overall markets don't go any softer from here. TKO has a lot of house keeping to do to hit $25 million (and at this point, I don't think that number is doable by year end). We're difinitely at the bottom of this downturn though.
On the surface, if TKO gets 18.5 M shares and the full 11.5M share balance is in private placements (PP) for $9.1 MM, then the average issuance share price to the PP's is $0.79+. This nets $14 MM in valuation to TKO shareholders, but excludes the effects of any warrants and convertibles. Whether that price holds through the IPO is anyones guess. So again this seems to be positive for shareholders. Am I missing anything here?
Great day for traveling yesterday... very very few cars on the hwy here in the mid-west. $3.40 for gas around Indy and $3.59 in Chitown were the lowest I saw.
I agree with your comment. I think the spin off solves a lot of internal problems Ron has had trying to run TWO growth companies that are technically aimed at two different target markets. I only see it as a positive at this point.
I think the spin off makes perfect sense as a TKO shareholder:
1. "TKO is relieved of the cost of funding MST's operations"
2. Future aquisitions by MST won't significantly dilute TKO shareholder value.
3. MST won't financially impede any aquisition of TKO by another company.
In short, it unclutters the balace sheet.
If your read Frank's following quote, TKO's direct ownership of MST hampered MST's growth either:
Frank Matarazzo, President and Founder of MSTI, said "Becoming a public company will allow MSTI to enjoy a much broader exposure to the investment community and will provide us with the access that we need to the capital markets for widening market share and growing our revenues and earnings." Mr. Matarazzo continued, "With the additional capital from this offering and the greater access to capital associated with being public, we are in a much better position to offer highly competitive services, utilizing the best technologies available within the satellite communications industry."
OT - Memorial Day
Lizzie Palmer who put this YouTube program together is
only 15 years old. There have been over 3,000,000 hits
as of this morning. In case you missed it, here it is.
The link below is the hottest thing on the internet
and on Fox News today .
http://www.youtube.com/v/ervaMPt4Ha0&autoplay=1
My, my... aren't you two sarcastic! What happened, you both get pulled out of line at the airport today for body cavity searches?
MLK... you're correct, it was Greenspan's prediction on the Chinese markets. I misunderstood when I heard it on the radio.
You also said: "the trend for the market has been up for several months". I'd like clarify that saying the trend for the Global 1000 has been up (largely reflective of the Dow and S&P 500's records... all that $400B defense spending by Bush). The performance by the balance of the markets however, and certainly the NASDAQ, have been far less stellar. As a positive, I do hear some analysts saying tech spending will improve in the 2nd half, but the Fed still needs to cut rates to counter the inflationary impact of gas increases to re-stimulate the consumer.
MLK... did you happen to notice the overall market's performance today. Nasdaq down -1.52%. Dow down -0.62%. It was a pervasive sell off today for ALL stocks! China based stocks (excluding CEA) took a particularly hard beating, largely due to Bernanke's comments yesterday about their markets facing colapse, and then Bush today demanding they revalue their currency upwards. Most of that negativity carried throughout the US stock markets. I swear it seems as if this administration and the Fed want to see foreign policy, oil and inflation cripple economic growth or even reverse it. (Or maybe they don't and the "terrorists" are simply winning.)
In light of that backdrop, TKO actually did very well today IMO. It was up most of the day, supported by large buying interest at $2. It only faltered at the close, and I would bet will be back up tomorrow at the market open. Next week could be the beginning of a summer rally, the 1st since 2004. Try not to be soooooo microfocused on TKO, ignoring the macro-environment for all stocks.
I'm not in the industry, but I've asked a lot of questions over my 35 years of investing with brokers, Ameritrade and E-trade. I can't help you with what's happened to the various ECN's you mentioned. You're correct that NASD is a primary retail trading hub as I understand it.
Yup... rich people are priveledged. They can trade direct with the company or another individual through the company's stock transfer agent in a "private placement". I don't have enough to get that kind of service!!! Do you?
Your broker may determine which MM or specialist is used. eg. Ameritrade may use one MM (eg. Knight) and E-trade another for "large" orders. Smaller orders may just be traded "retail" directly through the exchange (eg Pacific, NASD, NASD Global, etc.) electronically by your broker (because other MM's let them go through and are not supporting - accumulating or selling off).
Good explanation RBT. My understanding was they didn't have to post any amount if there was already a quantity holding the price. If there is none, they must post it. There might be 15 specialists and MM's sitting on different servers waiting for the quotron hub server to route orders by them searching each server for a buy or sell to fill an existing request. If it's being held electronically by the MM, the volume is not added to the quotron volume numbers when it sweeps by their servers in sequence. If a buy matches their sell, it transacts automatically adding to the volume total. Where the specialist's server sits on the router's hub, #1 or #15, determines the transaction pecking order.
Does that jive with your understanding?
Wow, there's a lot of behind the scenes trading going on. Just bought 8000 shares at $2, and it didn't budge the bid or ask quantities. That's not unusual, but it shows the MM's and specialists are pulling big orders off the network and filling them before they even hit the trading wire.
I second that complaint Dusty. Do we have a motion to approve?
RBT...
I agree with your observations. Toss on top of that discouraged investors who are throwing in the towel at this price, the advantage goes to the patient short coverer. That may change soon however. Monday, the overall market seemed to have suffered a final let down. We may be going through a market capitulation cycle, with a significant move up just around the corner. I'm tempted to get back in here. Are you sensing the same thing?
Hi Ginie... I'm currently not in TKO, but have been in and out three time over the last 10 months. I do believe in the technology, but distrust the judgement of management in executing various aspects of the business, ie. contracts, acquisitions, share dilution, full disclosure etc. While I'm not a "trader", I'm a "nervous" TKO investor due to it's AMX exchange environment and Mike Murphy recommendations. There you have my full disclosure... I'm probably one of the few on this board that have made some money over the last year on TKO thus far riding the waves of good news/bad news.
At the moment, I think they may be losing some market advantage to competing technologies (wireless broadband for example). Comfort Inns have this technology now in place where I stayed earlier this week, and it worked well. Competing technology costs may be coming down!!
In short before getting back into TKO, I want to see solid revenue growth and earnings improvements.
I think you're right to an extent BVC (great post BTW). Management's failure to communicate clearly and often about ongoing programs, contracts, and financials have hurt TKO by sturring guesses and rumors at all levels including brokers. (Remember though, advise is worth what you pay for it.) This board on the other hand has been instrumental in divuging the impact of dilution on share price two months ago, albeit not to these levels. Sometimes it helps a group to think out loud together - brainstorming - to reach a logical assessment. For that reason, ALL input is valuable and nothing should be discarded from consideration, and yet none of it should be regarded as 100% accurate. I hold TKO management in very low regard!! I don't think Paoni will be an improvement. JMO
Welcome to stagflation... compliments of this country's current leadership (and it's only going to get worse). I can't think of a single reason to buy any US based investment (TKO included) at this time. I would think CAPJ investments will be the only viable investments to make significant gains going forward over the next five years. Near term looking at the DJ and NASDAQ charts, I'd say were about to hit the skids over the next several months, and judging from the inflation reports, GDP, and the shrinking middle class, I'd also say the consumer is getting ready to hunker down for the next 1 - 2 years. Is anybody here happy with the way things are going here in the US??? (I rest my case!)
That 458M was probably a private placement. If the price drops Monday, that's the likely cause.
Hmmm... getting a nice bounce on continued high volume this afternoon. Good sign! We'll see if it holds into the close. If it does, next week may see some good retracement upwards. Reminds me of last August's set up for a rebound.
Well, given the cash burn, deminished revenue, dilution increases, lack of secured contracts over 12 months, seemingly poor acquisition assimilation, the overall ecomomic slowdown, and Mike Murphy's upgrade... I'd better wait for the stars to at least align over Ron's office at TKO HQ before I invest again.
Revenues look very weak to me given all the acquisition activity. Would you agree? If we weren't headed into summer and possible recession, I might nibble in here though.
Morning Sirius:
What do you think the heavier than average volume means???
Let me be the first to wish you a Happy Birthday for tomorrow by the way! You don't look a day over 29 from where I sit.
Gip
Sonny,
I just clicked about 6 more... hopefully they registered.
Gip
The problem is that there hasn't been a refinery built in this country in nearly thirty years, combined with failed pipeline maintenance programs (BP)... despite oil industry subsidies of over thirty billion each year coming out of tax payer pockets. The oil industry needs to be nationalized, to clear the way for alternative fueled (hydrogen and electric) products. Biofuels only increase the costs within our food chains, and delay the inevitable while continuing to produce greenhouse gases. This is what you get when an administration focuses on supporting big business instead of it's citizenry (eg: Katrina). Where is Tom Delay now-a-days?
My guess, this morning started slowly as a relief rally. We had day traders moving in to buy at mid-morning (<15,000 share trades), pushing up the price until mid-afternoon. Then panic buying set in around $2.26, trading larger blocks up to the $2.40, then the traders began selling into the last hour again. This is very definitely a day trader stock now! I don't expect the price to hold up tommorrow.
I fear TKO has lost its market potential. Every hotel I stay at already has wi-fi (not ibridge system). Smaller towns in fact already have wi-fi available throughout the city (eg. Bloomington IN) where you don't even need a hotel link. Competing technologies I fear may be gaining ground.
I'm also have always been highly suspect of the GE arrangements. They may pull on TKO what they did to APWR, buying only select assets that remained after BK rather than the whole company.
Unfortunately I think it will be difficult to measure Q1 revenue success in the hodge podge of numbers from acquisitions if they are mixed together. It will be easier for this management to hide any actual revenue derived from ELNK, GE, EDS, etc. to measure sales success if they truly want to.
$2.72 looked like a low to me on 2/27, as did $2.38 on 4/16 and $2.32 on 4/23, but nothing has held. Maybe you guys will get lucky in here now. As for me, give me clear revenue numbers first. (It would also help if the economy was on the rise rather than decline, and we weren't headed into the summer doldrums.) Once burned, twice learned!
Yup! Lesson learned. $1.90 on the downside again for sure, I agree. Maybe even further... a 60% collapse from the high is possible in a one day temporary drop again to $1.50. IMO this dilution issue is really weighing TKO down.
By the way, my daughter and son-in-law, who both attended Kellogg from 2001-2003, never heard of Paoni. They were full time students, so he might have been teaching in the evening only program while working.
Careful what you wish for!
I did that Chaos at 2.32 as you know and learned a quick lesson... the share price has been in steep decline ever since dilution became an issue, and management actions are unpredictable and apparently not in the best interest of the shareholders. Now that we've had the sharp drop and partial back filling today with traders stepping in to fill the void, we'll see if we can hold on or continue the price errosion. My guess is the latter.
I personally expect the downtrend to continue into the sub-basement. We're already down 46%+ from the highs two months ago, and I'm not going to try and catch the falling knife again unless management opens up and starts telling shareholders EXACTLY WHAT'S GOING ON. TOO MANY 5pm PRESS RELEASES WITH NEGATIVE NEWS, AND NO GOOD NEWS TO BE HAD AT ALL LATELY! By the way, do you think Murphy, or any of the analysts are still holding to their price targets?
Don't fault yourself. TKO is unlike any other stock I've owned. It's one thing to invest in a long term growth company, another to time your investment trades in and out based on financial ups and down or market conditions... but I've never had to trade in and out based on a seemingly unpredictable and at times irrational management team. I think investing again at this level is foolishness. The big investors will be raising hell over the near term with this BOD, and it wouldn't surprise me if Paoni didn't rethink his decision to join.
Well, so much for the double bottom and keeping the faith. I got entirely out of TKO this morning on the bounce back up to $2.15. I'm afraid we're going to see further errosion under $2. Things just seem to be falling apart on this management team, and either they can't get their act together to fix it, or simply don't care. Far too many negative surprises popping out at investors. I no longer have "the faith", and apparently no one else does either. Now I demand to see SIGNIFICANTLY improved revenue numbers of 60 - 80% before reinvesting anything again. Believe it or not since August I've actually made 6.8%, but now I want to protect that return.
Hi Sirius,
I just e-mailed her so I'll let everyone know what her opinion is when she gets back to me.
As for "keeper of the faith", if these guys have a fault, its poor management skills, not fraudulence. I know a Filene's Basement sale when I see one, and at some point they'll improve revenue flow despite their management inadequacies. It's got to be just around the corner. BTW, I'll bail if we go under $2.20. (That's not being faithful)
Gip
I not too concerned about this release. Here's a copy of the AMX regulations cited:
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-4430.pdf
If I read the Register correctly, the rules were implemented in December '03 and provided a flexible grace period for compliance, specifically that the MAJORITY of directors be independent, "non-employees". My guess is the conflict was over Musser's position as Chairman made January '03 before the rugulation changes. While he holds no other official company title, he is still listed as a direct employee. TKO probably argued the point that he had no direct involvement and lost.
The lowest on the totem pole and most expendable was Sadle, a logical choice to evict. They'll probably bring him back in later on if Musser or Ron vacate for whatever reasons. Delisting was never a threat, and the share price had been coming down long before the AMX letter was received due to dilution problems.
My daughter graduated Kellogg in '03 as class VP... I'll see if she has an opinion of Paoni. Maybe he's the breathe of fresh air the board needs to "get the show on the road" so to speak!