"MULTIBAGGER". The Wall Street Exclusive Jan 27.
From "Telko Me More About Telkonet"...
... Telkonet is growing its EcoSmart business rapidly, and even with the EthoStream business growing at a snail’s pace, overall revenues were up 16% in the most recent quarter. With every deployment Telkonet adds to its high margin subscription revenues, and the company crossed into profitability two quarters ago.
In the latest reported quarter Telkonet had $365,584 of net income, up almost 100% from Q2. $365,584 per quarter comes to $1,462,336 annually. At $0.175 per share Telkonet has a market cap of $21.88 million – that’s a PE of 14.96.
Compare that to similar internet of things with subscription business model stocks like Control4 (NASDAQ:CTRL) with a PE of 60, and Numerex (NASDAQ:NMRX) with a PE of 80.
Telkonet’s current earnings at those multiples imply a price per share of $.70 or $.94.
If Telkonet again doubled profits in Q4, that implies more than a 10X increase in share price if it were awarded Numerex’s multiple.
And this company has rapid growth, no debt, captive customers, subscription revenue streams, better than 50% overall gross margins, intellectual property, and strong secular tailwinds with the internet of things and automated energy and operational solutions.
Telkonet has also accrued $1 million in the bank, has a $2 million line of credit if it needed it, and per the CEO at the Noble Financial investor conference last week the company is explicitly not looking to raise money.
Telkonet Looks Like a Multi-Bagger
Telkonet’s price per share looks wrong to us. With such a great, growing, and profitable business it looks like a multi-bagger. It seems that because Telkonet looks like any other penny stock that is not listed on a major exchange, it has managed to go under the radar. But the business looks too healthy for that to last, and Telkonet looks like a great buy here.
