Here's my analysis for anyone that cares.
For a stock that's trading around $0.20, I still think it's an excellent speculative investment. You have a company that has operating history and clout with government entities around the globe. Unfortunately, they have faced some major headwinds. The fact that the private side did not merge with the public side was a disappointment for me, but there's still TIME to add a tremendous amount of value, and for $0.20, I think the stock is worth the risk.
They will close on the L-1011 transaction, without a doubt in my opinion (huge potential for added revenue)
Once they officially close, I think you'll see the stock jump and contracts to follow
For 9 months ended Sep 30, they showed $2MM of gross profit on just under $12MM in revenue (not bad at all)
SG&A came way down, they're managing expenses well
Scott Terry has the security clearance, the prime contractor relationships, the DOD know-how, and also the global connections
Scott Terry's past is riddled with success in this industry
The convertible note is not due until April 2018 (my opinion is that Johan Eliasch DOES NOT want to convert this note, and TMPS has been making the required payments, hence the large increase in Interest Expense)
Interest Expense is going to a billionaire that was willing to work with TMPS and owns shares of TMPS right now, Johan Eliasch wants to see TMPS succeed, he knows converting his shares would be catastrophic
The share structure is still attractive, no real dilution until April 2018, and like I said, I doubt there will be dilution because Johan Eliasch is not going to do something stupid
One new contract and we're back in this thing like you wouldn't believe
Yes, it sucks that they are terminating one of their aircraft management agreements, but it happens, you move on and you hunt for more. TMPS has a massive (lack of) working capital issue, but they are using equity to overcome that, and so far they are managing it very well in my opinion. They will only use equity when they absolutely have to, and the share structure allows them to do that while keeping dilution to a minimum. Johan Eliasch still has skin in the game, and I'm sticking with my investment.
This isn't Scott Terry's first rodeo, we just need to get past a couple hurdles. My gut feeling is that the L-1011 transaction is going to pay off big, and that's what I'm betting on, and for $0.20, the risk vs reward makes a ton of sense.
