Telkonet Inc (fka TKO)

[WinOneGipper]

Thanks GLL...

I went back and reread this PR, but couldn't find anything about their covering inventory costs, unless that's what "co-develop" means:

http://money.excite.com/jsp/nw/nwdt_ge.jsp?news_id=pzn-113203&feed=pzn&date=20070206

Specifically it says TKO "has signed an exclusive supply agreement with GE Energy to co-develop an innovative custom product"... "Over the next six months, GE will commence the first installation phase"... "to further develop and refine the product, customizing it to be compatible with all the various types of substation equipment."

At the risk of sounding overly pessimistic, when GE Energy absorbed Astropower, they only paid for its assets and "certain debt", which I believe included its management's stake in the company. Shareholders lost everything in the bankruptcy. While I am by no means implying this is GE Energy's intended goal, I am extemely skeptical. GE's track record of purchases involve distressed businesses with whom they do business. Most notible of these in my mind was GE's acquisition of Xerox's finance division 5 years ago duiring their $1 billion asset divestiture effort to stay solvent.

Again this is one of my reasons for concern. That and their lack of transparency. I'm probably being overly cautious.