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Telkonet, Inc. And Deutsche Asset & Wealth Management Partner to Design, Implement and Fund Energy Savings Upgrades for Commercial Properties
This will target buildings 100,000 sq ft or larger with utility expenses over $500,000. Big buildings = BIG contracts for Telkonet.
LINK:
http://www.telkonet.com/press/9-15-205%20Telkonet%20Deutsche%20Bank.pdf
California SB350 passes and should benefit Telkonet, by mandating a 50% increase in building energy efficiency by 2030. How soon will other states follow suit?
Link: http://thinkprogress.org/climate/2015/09/12/3700981/california-landmark-climate-bill/
You are a very brave man....I got caught buying shares without approval and the consequences were severe. But it was so worth it LOL!
Hola Mike!
Glad to hear you've been capitalizing on these insanely low sale prices...For a Limited Time Only! Reminds me of those .17 shares earlier this summer. We ALWAYS slide down after good news. It's money in the bank.
I think the residential thermostat market presents a giant opportunity, although competition in this space is 'heating' up quite a bit. Interestingly Samsung and SmartThings do not offer a smart thermostat to the best of my knowledge, so it seems a natural that Telkonet would partner with Samsung and SmartThings with a residental thermostat. Jason has mentioned that they will likely first enter multi-family housing (I assume this means condos, apartments, timeshares and the like...just think of all the thousands of timeshare units that could use this technology!) I suspect the real driver for us is going to be international expansion and potentially a ginormous government contract worth millions of dollars of revenue for Telkonet. The Energy Efficiency Improvement Act of 2015 is getting precious little attention in regards to Telkonet, but it could very well be a game changer for us if they win a major government contract, perhaps riding the coattails of JCI as a subcontractor. In addition, there are additional huge opportunities with CBRE and other commercial real estate companies...don't forget the association between CBRE and JCI now. Finally, all of the above may not even be relevant if we get bought....Jason and his team and Telkonet's technology have got to be an attractive acquisition target for any number of green tech companies. This could happen any day. Or not at all. But I believe it's only a matter of time until it does.
Thanks. There goes my conspiracy theory out the window :)
I know that MM's need to provide liquidity to the market, but where exactly are all these shares coming from? Are they hoarded by the MM's to provide liquidity when needed? There has to be a buyer and a seller for each transaction, and the MM's have to honor all orders. But there are a lot of shares showing up that I don't see listed on L2 and that seem to materialize out of thin air. Where do they come from? I don't really understand the process and there is a surprising lack of information online about market makers and how they function and any regulations they must follow. They don't enjoy a very good reputation....about as popular as lawyers in my estimation.
Also, I see a consistent short interest of 3.7M shares for TKOI on OTCMarkets.com. Is this real? I've been told you can't short a penny stock, and I can't imagine anyone shorting this company with all the good news, but why is this showing up online? Any insight?
Things are looking positive. Just need a little news to get things rocking and rolling again.
Volume definitely looking better but WHY is there so much resistance here??? There are loads of shares showing up that are not listed on L2. Market makers are at it once again I presume?
As usual very nicely written my friend. Agree 110%.
Added some yesterday....looked like we were finally ready to take out that big seller yesterday but more showed up.
Hey Joe,
The reverse split is irrelevant regarding the price...they split 1:10 and you will own 1/10 the shares, but each share will be worth 10X more so it's a wash. The real issue is that some negative Nancys claim a reverse split will make TKOI look desperate, trying to artifically prop up the share price, which in turn could result in a sell off. That's hogwash in this case. Telkonet has made it crystal clear that they will only do a split if it is backed up with proof of solid financial performance, meaning they want at least one - if not two - more quarters showing consistent, improving profitability. A split will also likely be timed with other good news, such as a huge contract or another new partnership. What a reverse split will do is allow us to be uplisted to another exchanges, eg Nasdaq, where we can attract serious, institutional investors, which is where our share price can really finally appreciate. Right now our investor market is severely limited because very few institutional investors are going to dabble in risky penny stocks and instead we get retail investors and penny traders. This company is the real deal and represents the holy grail of investing....finding a severely undervalued, under-the-radar company with great leadership that has lots of room to grow. If you have any doubts, go to the Investor Relations page on the Telkonet website and listen to the last couple earnings calls (or read the transcripts on seekingalpha). And read the posts on this and the Yahoo message board. This company is primed for a breakout. I also believe strongly that we will eventually be bought at a premium by someone in the green tech industry, particularly Johnson Controls, although other possible buyers include Ingersoll Rand, Honeywell, Google, United Technology, or even Apple. Why we haven't been bought yet is a mystery to me. Buy those 4500 shares - or more if you can afford it - and hold on to them. You can't own enough. I'm just shy of 1.7M shares myself.
A long, growing list of Telkonet partners:
Partners currently listed on the Telkonet website. Additional partners NOT currently listed on the TKOI website but previously announced are noted. I strongly suspect this is NOT a complete list!
North America:
Trane
Johnson Controls
Siemens
Carrier Enterprise
Constellation Energy
CytexOne
Control4
Gustave Larson
IslandAire
SmartCon Solutions
GexPro
Green Tech Installations
Groom Energy
Select Hospitality
Quality Conservation Services
Base-4 (listed on Base-4 website)
Caribbean and Latin America:
Trane
Evolutix
Caribbean Air
Vendasa
Asintelix
Middle East:
Varis Energy
Technology Partners:
Samsung
Zebra (not officially listed on website but trust me on this one)
Lutron
Axxess Industries
HotSOS
Saflok
Multiple Hotel Property Mgt Systems, incl Marriott, Hilton, Micros, Maestro, Agilsys, Galaxy, etc etc
Partners previously announced but not currently listed on Telkonet website:
Somfy Systems
Stanley Energy
Pacific Energy
TEMSCO
Mode:Green
Eco-Energetic (Central America)
ProTech Mechanical Contractors (Aruba)
GSE Management and Energy Solutions (Mexico)
This does not strike me as a company that belongs on the OTC market any longer!
I'm expecting somebody's going to just buy the entire lot of 0.23 shares any day....I'm actually surprised it hasn't happened yet. It's easy money .... there's just no way this company is staying in the low .20's for very long. Love the morning analogy but glad you left other morning routines out of the picture LOL.
Telkonet and the residential market. "More Homeowners Demanding Smart Comfort Control" ACHRnews 8-24-15:
"According to recent studies, the market for home automation products — including advanced thermostats — is poised for explosive growth. For example, research firm Markets and Markets released a report at the beginning of the year stating the global home automation and control market was worth $5.77 billion in 2013. The study further projects the market will reach $12.81 billion by 2020."
And a quote from Johnson Controls...
According to Liz Haggerty, vice president and general manager, unitary products group, Johnson Controls Inc., “Until recently, most homeowners gave little thought to energy management in the home, but effective marketing and education has helped to create a need for energy management in the minds of homeowners. Education is more accessible via the Internet, enabling homeowners to do their research online.”
More specifically, Haggerty noted: “As recently as three years ago, many people didn’t know enough about thermostats to express a preference as to which model they wanted a contractor to install. Today, as the result of marketing efforts and information available online, homeowners are much more likely to take an interest in which thermostat their contractor installs and the value it can deliver.”
Link to full article: http://www.achrnews.com/articles/130412-more-homeowners-demanding-smart-comfort-control
Can't go wrong here - you can't own enough. If only I had an extra $60K in the bank, I'd have bought all 260,000 at .23.
Wasn't me I swear LOL
Yet another potential Telkonet partner & market? CBRE acquires JCI Global Workplace Solutions (GWS).
Not sure if this has been posted previously, but more food for thought. In March, CBRE entered into a definitive agreement to acquire the Global Workplace Solutions Business of Johnson Controls. CBRE is the world's largest commercial real estate firm with 372 offices in 44 countries, managing 3.7B sq ft of space. Together CBRE and GWS will manage nearly 5B sq ft of space. Remember JCI & TKOI have a very close relationship and both have HQ's in Milwaukee.
Link: http://www.cbre.com/EN/aboutus/MediaCentre/2015/Pages/Global-Workplace-Solutions-Business-of-Johnson-Controls-Inc.aspx
Announcement:
CBRE Group, Inc. Enters into Definitive Agreement to Acquire the Global Workplace Solutions Business of Johnson Controls, Inc.
Los Angeles, March 31, 2015 – CBRE Group, Inc. (NYSE:CBG) today announced that it has entered into a definitive agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. (NYSE:JCI). GWS is a market-leading provider of Integrated Facilities Management solutions for major occupiers of commercial real estate and has significant operations around the world. The purchase price is $1.475 billion, payable in cash, or $1.3 billion net of the present value of estimated tax benefits, and with customary post-closing adjustments for working capital and other items.
GWS will operate as part of CBRE’s Global Corporate Services (GCS) business, which has increased revenue at a double-digit compound annual growth rate over the last decade, as more major corporations and other institutions outsource their real estate services. When the transaction is completed, the full range of combined occupier services – notably including CBRE’s leasing expertise and GWS’s engineering expertise – will be available to the clients of both companies.
“The exceptionally talented GWS team will greatly enhance our service offering for occupiers around the world,” said Bob Sulentic, president and chief executive officer of CBRE. “With GWS, we further our ability to create advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position.”
CBRE and Johnson Controls also announced a 10-year strategic relationship. CBRE will provide Johnson Controls with a full suite of integrated corporate real estate services (including facilities management, project management and transaction services) on more than 50 million sq. ft. and Johnson Controls will offer a factory-direct relationship on HVAC equipment, building automation systems and related services to CBRE for its managed properties. In addition, the companies will jointly fund an innovation lab that will develop leading-edge energy management solutions to lower costs and enhance their clients’ work environments. The joint innovation lab will evaluate, connect and leverage products, services and energy data to create value for occupiers and investors of real estate.
“Clients are increasingly asking us for fully integrated real estate and facilities solutions, which includes self-performing building technical services across their global portfolios,” said Bill Concannon, chief executive officer, GCS for CBRE. “GWS will further improve our ability to serve clients in more than 50 countries with a market-leading capability in all services, industry sectors and property types. The GWS team is a great fit for our business. They bring leadership and expertise in many areas that are vital to our clients, including engineering excellence, global supply chain management, mission-critical facilities and energy management.”
GWS serves a blue-chip roster of global corporations, particularly in the industrial/manufacturing, life-sciences, and technology sectors. Clients typically purchase these services under five-year contracts, and the average tenure for GWS’s 50 largest clients is 12 years.
Upon closing, John Murphy, GWS’s president, will join CBRE as global chief operating officer, GCS. “This combination will create a global market leader in the provision of value-added occupier services that enable clients to derive maximum value from their workplaces. Together, we will assure clients of high-quality, reliable, cost-efficient, comfortable and safe working environments no matter their core business mission,” said Mr. Murphy. “The fit between our two organizations – be it culture, values, a client-centered ethos, or our commitment to engaged and empowered employees – is outstanding. This fit will help accelerate our coming together to create new value for our clients and shareholders. I am extremely excited about our future as part of the first-class team at CBRE. ”
Together, CBRE and GWS will manage nearly 5 billion sq. ft. of real estate and corporate facilities globally, including 2.3 billion sq. ft. in the Americas, 1.2 billion sq. ft. in Europe, the Middle East & Africa and 1.4 billion sq. ft. in Asia Pacific.
GWS, which has approximately 16,000 employees worldwide, generated approximately $3.4 billion of revenue for the 12 months ended December 31, 2014.
CBRE anticipates that GWS will be materially accretive to its adjusted earnings per share in 2016. It expects to fund the acquisition through a combination of cash on hand and proceeds from the incurrence of debt. The transaction is expected to close in the late third quarter or early fourth quarter of 2015 and is subject to customary regulatory approvals. Simpson Thacher & Bartlett LLP acted as CBRE’s legal advisor.
That's kind of an understatement don't you think Mike? LOL. I fully expected a pullback today. I like what our resident chartist is saying. I think the odds of the chart breaking down are very slim given our rapidly improving fundamentals. Wondering if we will bump up against .30 and then take a breather at .29 - .30 Exciting times for all.
Amazing week, amazing close today. The stars are aligned and the beast has woken!
Telkonet Price Target....playing with numbers. Invite discussion.
Would like to open up discussion on a price target for Telkonet. I would like to show how seriously I believe Telkonet is undervalued and am interested in other opinions too. Also made this post on Yahoo.
What is the most applicable PE to use for Telkonet? The NYU Sterns list of PE ratios by sectors shows an average forward PE of 29.2 for Green and Renewable Energy as of Jan 2015 - this sector isn't a perfect fit for Telkonet but it's the best I could find, and it strikes me as a VERY conservative number for Telkonet. But I will start this calculation with what I consider conservative numbers (but will round up the PE to 30 to make it easy). TKOI is on track to do at least $2M annually and they list 126.63M outstanding shares. I believe they can do MUCH more revenue as they continue to expand their business both domestically and internationally. Pick what you think is a reasonable PE and net revenue below:
PE 30:
$2M profit = 1.6 cents per share x PE of 30 = $0.48 share price
$3M profit = 2.4 cents per share x PE of 30 = $0.72 share price
$4M profit = 3.2 cents per share x PE of 30 = $0.96 share price
$5M profit = 4.0 cents per share x PE of 30 = $1.20 share price
PE 40:
$2M profit = $0.64 share price
$3M profit = $0.96 share price
$4M profit = $1.28 share price
$5M profit = $1.60 share price
PE 50:
$2M profit = $0.80 share price
$3M profit = $1.20 share price
$4M profit = $1.60 share price
$5M profit = $2.00 share price (hello 10 bagger)
I just don't see a downside here, or am I missing something? If so, please enlighten me.
Check out the ZEBRA in a Telkonet tweet this morning:
https://twitter.com/telkonet
Something is up with Telkonet and Zebra Technologies. Perhaps Ethostream is partnering with ZBRA?
Nice action today. The Seeking Alpha article is giving us the attention we deserve. Link to Seeking Alpha article: http://seekingalpha.com/article/3443416-this-intelligent-automation-company-may-intelligently-up-its-share-price
THIS INTELLIGENT AUTOMATION COMPANY MAY INTELLIGENTLY UP ITS SHARE PRICE. By Joe Springer. Seeking Alpha Aug 17, 2015
Business is going well for Telkonet (OTCQB:TKOI). It is coming off of a record second quarter; and while that is good news for the company, the business developments of the second quarter are probably even more auspicious. Better still than both of these, the outcome of a vote at the annual meeting looks like it may precipitate a major catalyst for the stock.
1) The EcoSmart Platform
EcoSmart
Milwaukee-based Telkonet has developed an automated solutions platform called EcoSmart. The EcoSmart platform is used by hotels, dormitories, classrooms, and other large facilities for in-room automation solutions to optimize energy efficiency, comfort, analytics, and the like.
EcoSmart's services include sensing occupancy in a room through motion, body heat, ambient light level, door contacts, and other sensors. If a room is unoccupied, the EcoSmart platform can respond by reducing or cutting off HVAC, intelligently controlled by how long it determines it will take to restore the room to the desired temperature.
It can also turn off appliances in unoccupied rooms, reduce or cut off outlet power, report on inefficiencies in the power system, and send alerts when there are problems or when routine maintenance needs to be done.
This is quite valuable for reducing the very large energy and operational costs inherent of large facilities, and also in adding value the facilities would otherwise not have. For more background on Telkonet, you can read our first article on the company, and watch our interview with the CEO from earlier this year.
Four Pillars of EcoSmart
EcoSmart is not hardware, software, services, or mobile applications - but all of these integrated together into a platform.
Together, these four pillars of EcoSmart provide a comprehensive, first-in-class automated network that interfaces with and benefits both businesses and their customers.
On Thursday's second-quarter conference call, CEO Jason Tienor gave a thorough answer to an analyst request to describe how EcoSmart works, and what advantages it has over what is already on the market:
EcoSmart is made up of four distinct legs or four pillars. Those pillars are hardware, software, services and mobile applications.
So if we start with hardware, the EcoSmart suite of products is comprised of a number of different models of thermostats, both wired and wireless that allow us to do a number of things that other competitive products can't, in fact our newest released thermostat, the EcoTouch thermostat is an all-touch capacitive thermostat, provides feedbacks or when the screen is pressed, you actually receive the small vibration knowing that you're pressing it, utilize a number of new technologies that nobody else has deployed in this industry such as light monitoring and dimming of the screen in order to both save battery life and not to disrupt the user in a room by having a bright light in the middle of the night being displayed from a doorstep as well as a sensing feature so that they thermostat stays dim up until somebody approaches it and as you approach, it senses the user approaching and lightens the screen, so that you are able to see it and make changes to it. These are features and innovations that we've created that nobody else in the market has today.
In addition to the thermostats, we've also released ZigBee light switches and wall outlets that are controlled both by our software, by third-party triggers, by other devices are integrated to other platforms such as control four and now Samsung so that based on the ability to use some other device or the ability to monitor an environment if you walk off the door, we're able to cut the energy consumption of every single thing in the room, simply by turning off all the power to the outlets, to the light switches, to the HVAC equipment et cetera.
We also provide third-party sensors such as door and window censors, remote occupancy sensors, ZigBee related equipment like gateways and ZigBee to Ethernet converters that allow us to network this entire platform, utilizing networks like our EthoStream network, that's all comprised within our EcoSmart suite of products.
The second pillar is EcoCentral, which is a cloud based software service that allows not just our monitoring center and support center, but also the customers themselves to, from one convenient location, monitor all one or just part of any individual property to deploy reports on how the property is performing, how much money it's saving, what mechanicals need are repair and maintenance.
We, also within that EcoCentral cloud based platform, deploy a series of reports called our Virtual Engineer that basically are reports that alert the customer when specific maintenance is required. So that rather than having to search through the platform or the property themselves and determine what is needed to be done, we alert them prior to maintenance needing to be required, so that they can send out engineering without having to take rooms out of service and therefore saving them more money and extending the benefits.
Third is EcoCare, which is our 24x7 service. We provide a monitoring center right here in Milwaukee, Wisconsin that monitors all of the outstanding equipment within our customer sites from both the network side as well as the mechanical side, alerts customers to when there are difficulties, when there are problems, when there are break/fixes or defects, I mean works with the customer in order to resolve those issues, it also provides services to make those fixes as well as extended warranty on our products and the access to the EcoCentral platform itself.
The fourth pillar is EcoMobile. EcoMobile are a series of native applications for both iOS and Android. One that is written specifically for our partners that allow them to deploy our solutions in a very rapid and efficient manner through utilizing the phone, its camera, and its data connection. They are able to upload information directly from scanning the bar code on the device prior to installation to taking pictures of where they are installed and uploading them directly in to our EcoCentral platform.
The second application is direct to our customers, allowing their engineers or housekeeping staff in order to using their own devices, see the occupancy of guest rooms, see where guest rooms need maintenance, see levels of savings and reporting services directly from their own handheld using the mobile application and the final application was an EcoMobile that we are working on and look to be releasing soon is a customer facing application that will allow our hotel guests use of their own device with our application to control all of the controls within a hospitality room from the thermostat to the wall outlet to the light switch and that's a new application for every hotel, but the same application will be able to be used through any hotel where our products are deployed.
The four pillars of EcoSmart provide first-in-class in-room automation for large facilities.
Trends
Generally speaking, Telkonet's EcoSmart platform is linked with some of the best growth themes in the economy - energy efficiency, internet of things, automation, cloud, and even mobile.
More specifically, there are large opportunities in energy management systems for buildings - this market is approaching $100 billion.
Even more specifically, automation of individual rooms in buildings is an enormous part of this opportunity. Hotel guest rooms account for the majority of energy expended by hotels, and hotel guest rooms and other rooms where occupants do not foot the energy bill are notorious for wasting energy unnecessarily.
Telkonet looks well positioned to capitalize on some very strong trends going forward.
2) Current State of the Business
Coveted Business Dynamics
The EcoSmart platform is not only impressive technologically, but from a business standpoint as well.
The EcoCare service is subscription-based, so every sale of EcoSmart provides ongoing income for Telkonet. And EcoSmart is designed to pay for itself in reduced costs, so once the system is installed, customers are very likely to stay loyal customers.
In addition, the EcoSmart platform allows for Telkonet to continue to scale up what the platform offers, which is exactly what it has done, and continues to do.
Finally, if networked automated energy solutions were easy to offer, there would be a lot more competition and margins would be low. But these solutions take expertise, development work, and trusted relationships with large customers, and margins are indeed gaudy.
Second Quarter
Telkonet is just lately breaking into profitability.
In the just-reported second quarter, Telkonet's gross margins were a lusty 60%. This was largely because it is starting to achieve scale - it had record revenues of $4.8 million in the second quarter. That hit the bottom line as $0.5 million in net income.
But as good as the numbers in the second quarter were, they are probably not as auspicious as the business developments were in Q2.
Trane
On May 26, Telkonet announced a strategic partnership with Trane, a brand of Ingersoll Rand and a leading global HVAC provider. Trane will be deploying Telkonet's solutions alongside its HVAC equipment. This partnership is huge for tiny Telkonet, and should drive a great deal of sales in the years to come.
Samsung
On June 15, Telkonet announced a strategic partnership with Samsung. This agreement is two-fold.
The first is that Telkonet has integrated its technology in to Samsung's technology, so that hotel guests can access Telkonet's controls - turn off lights, turn off outlets, adjust thermostats - directly from the remote control and also on the screen of Samsung's televisions. Telkonet has been working with Samsung on this for more than a year, and it is the only energy management platform integrated with Samsung's technology in North America.
The second part of the agreement is for Telkonet to do the deployment and services of Samsung's Hotel Management System platform. Mr. Tienor on the latest call:
The second part of that relationship is one of a services partner. So in the sales, when we sell an HMS platform or when they sell an HMS platform, we will actually be doing the deployment of that platform. So everything from procuring the hardware, building out the platform, installing in to the customer premise and providing the aftermarket support after the installation is completed will be done by Telkonet.
Continuous development
The EcoSmart platform allows for continued development of new products and services, and Telkonet has been rolling these out continuously. In the second quarter, Telkonet announced the release of the EcoTouch touchscreen wireless thermostat that Mr. Tienor referred to above.
This is the latest, but should be followed quickly by a next generation EcoSense wireless sensor, EcoContact wireless door and window contact, and perhaps most importantly, an EcoConnect wireless gateway, which should position the company well for small retail and consumer markets.
So Telkonet had a record second quarter, but the partnerships with Trane and Samsung, and the ongoing expansion of the EcoSmart platform, are perhaps far more important.
3) Major Catalyst
Telkonet had a record second quarter, and even more encouraging business developments. But both of these may not be nearly as important to the share price of Telkonet as another event that happened in the second quarter - the annual meeting.
At the meeting in June, Telkonet's shareholders overwhelmingly approved a measure to allow Telkonet's board to do a reverse split and uplist to a major exchange.
There is a lot to like about Telkonet - it has the upside of an emerging technology, but it is not necessarily just a speculation, as it is already profitable.
As a matter of fact, the $0.5 million of net income in the second quarter annualizes out to $2 million in net income. With a market cap of about $26 million, that would give Telkonet a PE ratio of about 13 -- like a deep value play.
If that does not seem to make sense, it is likely because Telkonet is an unlisted stock that trades for well under a dollar per share. It is regarded as what it currently is - a penny stock.
This reverse split and uplist - imagine this same company trading for $5 per share on the Nasdaq - could be a major catalyst for the stock, finally giving it its due.
Will the company indeed do the reverse and uplist? Mr. Tienor on the last call:
In the conversations that the Board has had thus far, what we are looking to do is, demonstrating the performance of the company would justify not just the stock split, but a potential uplisting on to a large exchange. So putting one good quarter behind us here in Q2 was great, but we are really looking forward to executing as well on the third and even potentially the fourth and then the Board would make a determination at that time, so it would be the appropriate time to do so.
So with a strong third and fourth quarter, the company is likely to proceed with what could be a major catalyst for the stock.
We are already halfway through the third quarter, and in Thursday's press release management was confident enough to remind investors that Q3 (and Q4) should be expected to be strong:
Looking forward, we'll utilize this financial and strategic momentum to enable our continued year over year top-line growth while driving profitability for full year 2015 as we continue ahead into our seasonably strong third and fourth quarter.
Telkonet's Q1 can be a lumpy one, but that will not factor into the company's decision. As it is, it looks like investors can be cautiously optimistic that a reverse split and uplist - and a possible surge in share price - may be in the cards after Q4.
Conclusion
Telkonet is linked with some of the best growth trends in the market. Its EcoSmart platform has excellent business dynamics and is already driving the company to profitability. The platform is continuously evolving, and Telkonet now has two excellent strategic partnerships with Trane and Samsung. If all of this leads to a strong third and fourth quarter, the company is likely to reverse split and uplist to a major exchange, which should be very good for the price of the erstwhile penny stock.
Disclosure: I am/we are long TKOI.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Way to go Joe!
Telkonet reports record quarterly sales and profit from Milwaukee Journal Sentinel, Thomas Content author.
"Telkonet Inc.reported record sales and net income in the second quarter, as the company inked deals with large companies that are installing its energy-efficiency technology.
The maker of technology that wirelessly controls energy usage in hotel rooms and college dorms is seeing strong demand, and it's looking to achieve profitability for the full year, the company said.
Its growth last year prompted it to move its headquarters to Waukesha after it outgrew its space in Wauwatosa. The Wauwatosa building, on Innovation Drive, remains its operations center.
Telkonet has expanded to 115 employees from 105 two years ago and is currently looking for 10 more employees, Jason Tienor, Telkonet chief executive, said in an interview.
The company, which is traded as an over-the-counter bulletin board stock, is discussing alternatives that could move it to a larger stock market index, Tienor said.
Telkonet shareholders in June approved a reverse stock split that could help ease the path toward such a move, he said. The company's board of directors has not announced whether it will proceed with a reverse split.
In the second quarter, the company reported sales of $4.8 million, up from $4.4 million a year ago. Net income doubled, to $523,000 from $219,000.
The company makes wireless thermostats and energy management systems that stop a room from being heated or cooled when it's vacant.
In addition, the company has recently announced new alliances with Samsung and Trane that are helping boost its profile.
Samsung is using Telkonet technology that allows a hotel guest to adjust the temperature setting or manage electrical use in the room on a Samsung television by using a special remote control. Trane, a division of Ingersoll Rand, is marketing and promoting the Telkonet "EcoSmart" products through its hospitality sales channel.
The partnerships and new product introductions have the company looking toward continued sales growth and profitability for the full year as the company enters its seasonally strong third and fourth quarters, he said."
Link: http://www.jsonline.com/business/telkonet-reports-record-quarterly-sales-and-profit-b99556745z1-321835581.html
The Telkonet call was darn near PERFECT and pretty much what I expected (although we didn't hit the $5M mark but came really close). We just need the word to spread and get noticed by more investors. I just don't see any downside here, considering the company we are keeping with big-time worldwide partners and our focus on international growth. WHAT IS NOT TO LIKE HERE??!! Sounds like no reverse split until we have a couple more great, likely record-breaking quarters to prove we are for REAL, and we will then also be uplisted at the same time out of OTC, which will put us in front of a whole new class of investors. In the meantime, we just need to get over the hump at .23 and then we should grow some strong legs to carry us up.
FOR ANYONE WITH ANY INTEREST IN BUYING THIS STOCK, LISTEN TO THURSDAY'S EARNINGS CALL!
It's anybody's guess what earnings will be, but I am expecting a big jump and think $5M is entirely possible (or maybe even more if I dare dream really big). These alliances have got to start paying off soon. I just booked a hotel room tonight and happened to notice Samsung mentioned in the room descriptions at some of the hotels.... the deals with Trane and Samsung are going to help get Telkonet into a LOT more hotels, although not sure how much these partnerships will affect Q2 numbers. All quiet on the Wisconsin front since Hitec, but there are more deals in the works based on the last call and I can't help but wonder if they might hook up with Google and Nest, and I really suspect something is in the works with Zebra too. Been expecting to see some pre-earnings optimism driving up the share price but so far I've been wrong. Unfortunately there are not many other regular voices on this board except you, me and SPM555. Is TKOI on the radar screen at all at microcap club? I check their discussion board regularly and have seen it mentioned only twice and would think this company would be perfect for them or anyone interested in microcaps.
Yes, could see the little game of selling repeat itself yet again the past two days so I was pleased with our close. Hoping we will get some news to help push us up before next month. It's been very quiet since the Hitec announcements last month, and I didn't think the buying interest would fizzle out so quickly with all the recent good news .... major deals with Trane and Samsung, release of a new state of the art IoT thermostat with residential market application, something going on with Zebra Tech, a likely reverse split in the works that will be timed with corresponding good news .... what more do people need to hear?!! But I agree we are holding pretty well above .20, so that says something. I too expect another leg up soon, which should start some fireworks.
Hope you are right. I saw that spread too and thought it was downright funny to see a .0001 spread in an order for 2500 or 5000 shares of a 20 cent stock. That's an extra 25 or 50 cents profit LOL! Seems there is no end to sellers that materialize at the last second - relatively large blocks have sold these past couple days, which is a little odd, although I will say we have held up pretty darned well with the pressure. Hoping to see a pre-earnings run up start any day, or another announcement, which could pop us past .23 in a hurry. Have added to my collection these past couple weeks in the .21 range.
What is up with Telkonet, Ethostream and ZEBRA Technologies?
If you followed Telkonet's tweets at Hitec last month, you will remember a tweet on June 15 that read:
"The Internet of Things is Here. Is Your Hotel Ready? Come see us at Hitec - Booth 1455 or Booth 1548 to learn more about Telkonet, Ethostream and ZEBRA TECHNOLOGIES"
Furthermore, consider the quote below from an article "How Zebra Technologies Will Win The IoT Market" by ITBestOfBreed.com March 26, 2015.
"Zebra Technologies is expecting to become a major player in the emerging Internet of Things market following its $3.45 billion acquisition of Motorola Solutions' enterprise business late in 2014....
How is Zebra Technologies currently utilizing IoT?
Zebra has a number of initiatives that address the IoT market. We have been shipping modular access points (APs) which allow for sensors to connect as modules to the AP - thus allowing "things" to use the WLAN infrastructure to connect and control lighting and temperature settings"....
Link: http://www.itbestofbreed.com/article/how-zebra-technologies-will-win-iot-market
Absolutely. Was hoping we could break through on the most recent news but it looks like we may need to wait for the next big announcement, which may be Q2 earnings announced next month, although I would not be surprised if additional partnerships or other big jobs are announced before then. I am still wondering what is up with Zebra Technologies. Something is brewing with them based on the tweets made at Hitec last month.
Telkonet congratulates Hilton Los Cabos on its completed redesign & welcomes you as the newest EcoSmart property!
Link: http://goo.gl/B1mA3S
New Details on Telkonet EcoTouch thermostat. Impressive!
Nest Schmest. We have the better product by far.
Link: http://www.telkonet.com/datasheets/EcoTouch_Rev1.pdf
I did my part today. Thought we were going to get all the way through .23 today so I bought a little in the .23's. Need another volume day like today and we will be there.
Harvard Magazine: Disruptive power of Internet of Things.
Interesting article.
Link: http://harvardmagazine.com/2015/07/why-the-internet-of-things-is-big-business#.VZGE-nsAF88.email
Read about GE and see if you appreciate any similarities to Telkonet's business model. And of course, there's a mention of Nest...wish we could get just 10% of the attention that Nest gets with its inferior technology.
Excellent action today....threatening to bust through .23 sooner rather than later. Booyah!
Hey Buddy thanks! :)
Hmmm interesting number because that's about what I'm expecting too. We should finally get some real attention then. Won't be completely shocked if we trade under .23 until we get closer to Aug 15 - which will seem like an eternity to me - although of course hoping we break resistance before then. I'll be buying all I can afford if we drop into the teens again.
So there is not another Mike on microcaps out there right? Just curious why I never seem to see TKOI in the active forum topics at microcapclub?
Interesting comments about Telkonet from someone visiting HQ
posted on another message board. I am re-posting their comments below:
"I visited Telkonet two weeks ago. I can tell you I have been around many corporate executives, I'm very impressed with this management team. especially Jason Tienor. Jason will not be satisfied with telkonet until it is a hundreds of million dollar company or bought out. and after spending some time with Jason he has the determination to take telkonet to that level. Jason has great leadership ability, incredible knowledge and drive. This man has everything it takes to be a winner. I think if Telkonet does get bought out Jason is a perfect fit to continue to grow the company. Now look at the energy saving economic environment right now in time. Their has never been a time so right for telkonet and its energy saving products. I'm confident that you will see more companies marketing Telkonets products and more new products coming out soon. I'm glad I have this opportunity. One year from now people will say. I should have!!!"
Did you talk to anyone at TKO about potential gov't contracts under the Energy Efficiency Bill passed in April?
"They said their was Government business out there and they were going after it. Their was also conversation about colleges using telkonet products in dorms. and has really warmed up. All companies that are in this energy efficiency field know that this (non partisan) bill that was passed by our government is huge and telkonet with it's products will be a part of this. Also South America will be a big user of Telkonets products due to cost of energy there. Telkonet is not a follower in the energy efficiency field but a company that is leading and looking for every way to be the first to come up with ways to use technology cloud and Internet, This management team is outstanding. And Jason is a great leader"
Excellent as always much appreciated!
HELLO .23 - YOU LOOK LOVELY TONIGHT.
Let's hold on to this .23 level folks cuz we're crossing the trendline from April 2013 to present and there's nothing but clear skies ahead!
Maybe SPM will be kind enough to add his .02 or even post a chart? :)
A battle at .23 is being fought. .23 looks to be a very important resistance level and we are getting close to crossing it! Another announcement would help although that's not looking likely anymore this week.
Qualitystocks.com: "Telkonet, Inc. (TKOI) Driving Industry Growth with Innovative Automated Hospitality Solutions"
Link: http://blog.qualitystocks.net/stocks-to-watch/telkonet-inc-tkoi-driving-industry-growth-with-innovative-automated-hospitality-solutions/
Job fair at Telkonet Thursday indicates continued growth and expansion. Another positive sign. Investors need to wake up to this company!
How right you were! I 'm just glad we are holding above .20 (so far). Looks like we will need another major PR or a new big buyer to punch through .23.
My sentiments exactly. Historically we have run out of buyers after these quick runs and I'd like to see stronger volume. Am trying to not get my hopes up too high, although it's a matter of time before we make a break. Too many great things are happening to stay down much longer. Good luck to us all!
Zebra Technologies + Telkonet
If you have been following Telkonet's Twitter account, you've seen they have sent several Zebra Technologies tweets from the Telkonet account. I am guessing the headline below has something to do with that. Perhaps Ethostream will be using Zebra technology with their Wifi service, although there may be other IoT applications that can be used by Telkonet instead. Regardless, the association strongly suggests we have yet ANOTHER partner. BTW Zebra has a market cap of 5.9B and a share price that has nearly doubled over the past 8 months. It's a winner.
Press release June 11, 2015:
Zebra Technologies Redefines Hotel In-Room Wi-Fi with Industry's First Dual Mode, Dual Radio 802.11ac Access Point
"Zebra Technologies Corp (ZBRA), a global leader in products and services that provide real-time visibility into organizations' assets, people and transactions, today announced the new TW-522 wireless wallplate access point (AP) to help meet hotel guests' growing demand for wireless connectivity. Designed to extend a superb mobile broadband experience to hotel guest rooms by leveraging existing telephone wires, the TW-522 AP offers a cost-effective, easy snap-on installation that eliminates the need to run new cabling to each guest room - reducing installation complexity and minimizing disruption to guest stays. Zebra will debut the TW-522 AP in Booth #620 at HITEC 2015 on June 15-18 at the Austin Convention Center."