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INNOTELCO to Commence Shipments of Telecommunications Products From China to North African Countries
Thursday December 28, 8:45 am ET
TORONTO--(MARKET WIRE)--Dec 28, 2006 -- INNOTELCO, Inc. (Other OTC:ILCO.PK - News) today announced that it expects to commence shipments of telecommunications products which will be shipped from China to the North African countries of Algeria, Libya, Tunisia and Yemen. INNOTELCO believes that the initial shipment can expand into a series of shipments which will create a revenue stream for several years.
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Approximately $3,000,000 to $6,000,000 in telecommunications products should be shipped by the end of June 2007. INNOTELCO may realize as much as $1.8 million in revenues for its participation in the facilitation of these shipments. This contract is in addition to the revenues that the company expects to realize from the sugar and feed barley shipments which were announced this month.
Radomir Popovic, Vice President of Sales and Marketing for INNOTELCO, stated, "This is truly a very exciting time for our company. Over the past few years, we have worked diligently to create an infrastructure which will allow INNOTELCO to be a facilitator of large scale commodity-type transactions. We now have an infrastructure which will allow us to ship products from China and South America to several North African countries."
Mr. Popovic concluded by saying, "It gives me great pleasure to begin announcing this series of great news to our shareholders. We appreciate their loyalty."
About INNOTELCO, Inc.
INNOTELCO is a telecom hardware supplier, specializing in servicing emerging markets looking to expand their telecommunications networks. INNOTELCO's products range from indoor and outdoor coaxial cables and accessories to fibre optics and switching equipment.
INNOTELCO is also engaged in the construction of a wordwide business network which will result in a seamless facilitation of larger scale commodities transactions. This network will span the world from Asia into Easton Europe, North Africa, and reaching as far as Sao Paulo, Brazil.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe," "expect," "estimate," "project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. INNOTELCO, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.
Contact:
Contacts:
Empire Relations Group, Inc.
Kenneth Maciora
(516) 750-9719
Email Contact
http://www.empirerelations.com
INNOTELCO, Inc.
Radomir Popovic
416-259-8444
http://www.INNOTELCO.net
--------------------------------------------------------------------------------
Source: INNOTELCO, Inc.
At this point in their business cycle I don't think they would have PR'd it if they were certain they could close the deal.
That is my understanding - they were also confident that they could have it signed this week.
As Ken indicated to me the total contract value of the sugar (or other commodity) will never to be able to taken as revenue - revenue will be the commission or amount that ILCO realizes from the deal. In this case - the revenue would be the 2.5 to 5.0M - however the costs are unknown - although there will be no cost of the sugar (or other commodity)
Yes you are correct - the 2.5M to 5.0M is what ILCO expects to realize from that contract - less some other costs related to the transaction.
not true - last day is 12/29
His imagination. People need to be patient here. Too much too quick is bad.
Looks pretty good no - does it need to consolidate some more - seems we get in a big move at the beginning of each month (historically)
I asked Ken about financial reporting and he said that is at a minimum 3-6 months down the road. Their priority is to get contracts signed and new business in the pipeline. He said that reporting is not in the cards until the ILCO stock price is .03 to .05 (if and when that happens).
On an aside - if take the two deals that were mentioned in the PR the company is way undervalued. Assuming a conservative profit of 500K between the two deals (and that is really conservative) and assigned a PE of only 10 with 513M shares out I come up with a share price of $.0097. I know its hard to use this analysis down here in the subs, but we are currently trading at or less than shell value.
I spoke to Ken Maciora and he indicated that there are other company events in the short term pipeline.
The move into commodities has been known for months now. The business is more about their relationsships and ability to make deals in these underdeveloped countries.
ILCO News
INNOTELCO Discusses Results of Recent Board of Directors Meeting
Contracts Discussed Are Expected to Realize in Excess of $7 Million in Revenues for INNOTELCO in 2007
INNOTELCO, Inc. (PINKSHEETS: ILCO) today announced the results of its recent board meeting. The company continues to diversify itself by reducing its concentration on transactions within the telecommunications sector to a company that is fast becoming a facilitator of large scale commodities transactions. These commodities include barley, sugar and oil, in addition to commodity-type hardware such as telecommunications products. INNOTELCO is applying this strategy because of the higher margins that can be realized in these large scale commodity transactions.
INNOTELCO is entering the final stages of negotiations for a long-term contract to supply sugar which will be shipped on a regular basis from Brazil to Algeria, Tunisia, Sudan and Libya. In total, the shipments will represent approximately 500,000 metric tons of cane sugar. INNOTELCO expects to realize revenues in excess of $2.5 million and as much as $5 million from this contract. The contract is expected to be signed this month and initial shipments are expected to begin in January 2007.
In addition, the company's directors have made final arrangements for a feed barley shipment which will originate in Eastern Europe and is destined for North Africa. The company is expected to realize a net income of $192,000 from this deal.
Radomir Popovic, Vice President of Sales and Marketing for INNOTELCO, stated, "Much effort has gone into setting up an infrastructure which will allow our company to easily facilitate shipments from South America, China and Eastern Europe to North Africa. We believe we will finally realize the results from the tremendous amount of work that has gone into building this worldwide system. I personally have made several trips over the past year to Eastern Europe and North Africa to help complete these transactions."
About INNOTELCO, Inc.
INNOTELCO is a telecom hardware supplier, specializing in servicing emerging markets that are looking to expand their telecommunications networks. INNOTELCO's products range from indoor and outdoor coaxial cables and accessories to fiber-optics and switching equipment.
INNOTELCO is also engaged in the construction of a worldwide business network which will result in the seamless facilitation of larger scale commodities transactions. This network will span the globe from Asia into Eastern Europe, North Africa, and reaching as far as Sao Paulo, Brazil.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe," "expect," "estimate," "project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. INNOTELCO, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.
Source: Market Wire (December 20, 2006 - 8:45 AM EST)
News by QuoteMedia
www.quotemedia.com
Great news - I wonder what the net profits related to the 2.5M to 5.0M contract are going to be. Seems to me that if they are brokering the deal most of it should be profit. I will call Ken Maciora to see what he has to say.
It is just odd - that is following a similar cycle - may not be the same this time.
This is following the same cycle it did in the past - big move on a monthly basis and then a retracment and then up at the beginning of the next month - look at the 18 month chart.
Yes - Empire probably gets paid - why else would they provide a service.
Where in the PR did it say that there would be an update within about 30 days? TIA
Probably good we touched the 20 MA - looks like the 50 and 100 are going to cross soon. Still no volume.
Someone dumped out of 2M shares at .0015 - almost like they were downticking it on 25K sells to get it there.
I spoke to Ken Maciora at Empire Relations this morning regarding the retirement of the 148M shares. He was not aware that the company had retired the shares - he is going to look into and get back to me.
He also indicated that the company is leveraging their relationships to broker deals related to cement and other commodites that are needed in North Africa. He said that we should expect contract news soon.
The fact that the TA is not gagged and is giving out the authorized, outstanding and restricted number of shares is huge IMO. These guys have nothing to hide.
I will ask that as well.
If you want, you could call the TA and verify both what I said and get the exact share structure. I think the exact number of shares out is 513 and some change - I think it is 513M and 700 thousand something - minor details IMO.
One way to look at the share reduction for ILCO is that your shares are now worth 22% more since the O/S shares were reduced from 661M to 513M.
I am going to speak Ken Maciori at Empire Relations to see who the restricted shares that were retrired belonged to. I would tend to agree with your hypotheses about them being retired for cash - either way I am excited that the number of shares is 148M less - means that the current market cap is even less than we thought it was.
That is a question I have - I called Ken Maciora at Empire Relations and left a message for him.
I was somewhat suprised by the news - I had not called in a few months.
The transfer agent is Standard Registrar and their number is 801.571.8844.
I just called the Transfer Agent for ILCO and the current share structure is:
513M O/S.
164.5 restricted
348.5M float
The transfer agent said that in October of this year they retired 148M of the restricted shares, which is consistent with the share structure as I understood it prior to October - which was.
661M OS
312.5M restricted
348.5M float
Good news IMO!
Today I spoke to Ken Mociora at Empire Relations regarding ILCO for about 20 minutes.
I asked him about the following:
1. 11/27 PR which stated the BOD was meeting to finalize contracts - He indicated that the BOD met the week of 11/30 for 3 days and is now in the process of finalizing contracts. I asked when we could expect to see the PR's related to the meeting and he said the next few weeks which is consistent with what someone else on this board had previously indicated (within 30 days of the meeting?). Ken also indicated that the company is being conservative and wants to have finalized contracts/cash in had before they were PR'd. He said he could give me no more specifics since the info has not been PR'd, but he said things are progressing and that we will see something in the next few weeks.
2. Future plans - Ken said that Radomir Popovich has a number or existing relationships in North Africa and is also working on brokering other types of deals for Innotelco related to the import of such commodoties such as sugar - he said that ILCO would work as a broker in these deals and receive a fee.
3. Other - Ken indicated that he was currently accumulating shares for himself because he likes the companies prospects. Based on his conversations with the company and his own analysis - he thought the company could earn at a minimum a net profit of $2-5M US in 2007.
This was my first call to an IR firm - take it for what it is worth.
165 share trade on ILCO which totals $.28.
NO
ILCO is not longer restricted by Scottrade.
On Wednesday I bought 8.6M shares of ILCO at the ask through Scottrade - I wonder if this has anything to do with the resctriction - and no I am not crazy for buying 8.6M on the ask.
Yes it is restricted through Scottrade.
Scottrade is not allowing on-line buys for ILCO - what does that mean?
Yep it is rare that the TA is not gagged.
That will come this week IMO
The only ones trying to hold it down are the sellers - there is no conspiracy here!
Only SBSH at .085 and then the next one is at .097