Well, well, well, lots of negativity today, lawsuits, management are crooks, management looking after number one and so on.
Like all, I am not happy with the current stock price, who is bar the shorts, but we have been in this "quiet faze" before, what happened the last time?
Granted, at these prices even with some good news, it will take time to break the $3 barrier again, let alone breaking through the $3.50 and upwards, but there are delays as we all know happen, moreso with TKO than any of my other stocks but they do happen, normally several months later than anticipated, this in my opinion is where TKO go wrong.
RP and the IR guys need to release forward looking projections, too much cloak and dagger stuff with government contracts, hands being tied, strings being pulled, RP and TKO being puppets to the big boys, but I do expect news before the month is out and good news at that which should stop the bleeding and help the cashburn along with several other things which many on this board are aware of.
RP`s vacation finishes this week and he is supposedly out on the road next week with Mike Porter, Joe Noel also but not together, will be interesting to see the outcome of this next few weeks and if the much rumoured CC and revised guidance does actually happen.
I posted on Yahoo that in my book TKO has now become a story for the second half of 2007, taking into account delays for the 200 chip for GE and Homeland Security but GE was always going to be a second half of 2007 story as per their PR, EDS is ramping up nicely I hear with orders coming in almost daily and back orders amounting to sizeable amounts, but the larger sub stations require the 200 chip as do some of the Homeland Security stuff,inventory is low for these chips, but as we all know from the PR, GE are helping with the inventory and manufacturing, so now they are urgently required for the larger sub stations, I presume GE will be pulling out all the stops to make sure this will happen, albeit re-badged a GE component.
There has been no further discussions re the schools, which I am told will be much larger than most expect. What will happen to MST? Time will tell, but as they are the largest draw on TKO`s cashburn, I presume this is being looked at very closely.
Institutions, well let`s see what the next few weeks bring from the roadshows, let`s see if Ron can win them back over the next few months, but revenues must be ramping up in the background, but TKO have the biggest hurdle to get over for the second half of 2007, where if they are to reach the proposed $25 million in revenues, ignoring the additional $9 million for the two new acquistions which supposedly increases the projections to $34 million for the year, my workings out are that they need to do 30-35% of the $25 million in the first two quarters, i.e. $7.5 to $8.75 million, that leaves a steep hill to climb for the second half of 2007, i.e. requiring a further $17.5 to $16.25 million, so a lot hingeing on GE for the months of July through to December, obviously ignoring the $9 million stated above.
From what I hear, that 30-35% should be achievable for the first half of 2007, mainly EDS and Homeland Security, but if the schools do ramp up along with GE and a few other bits, along with some cash injection over the next few months, on paper, their projection of $25 million for the rolling calendar year should be achievable and then even better for 2008.
I am by nature a very positive person and always look on the bright side, I have just been taken aback somewhat by the comments today about lawsuits, management being crooks and thought I`d take this opportunity to outline what is and will hopefully be achieved for the year regardless of stock price and I have posted many times before, here and Yahoo that due to the lack of PR`s, the Q`s will do the talking and will show us the money, but at the current stock price, we do have a hill to climb, but climb it we shall albeit it doesn`t feel that way to many.
Remember why you bought the stock, stocks go up, stocks go down, TKO is still a story stock until we are shown the money which proves they are doing what they say they are doing, hence why I stand by my comments, TKO is a July onwards stock to me, but we need updates from management and I think if they do
actually do a revised guidance, albeit bought money, it will re-instill confidence.
I am biding my time and haven`t posted much of late, but felt compelled to post today.
Take care everyone, regardless of your stance, whether long term investing, shorting or trading, good luck to all of us, we will all have our day!!
Almost midnight now, so I`m off to bed!!
GLL
Disclaimer:-
I have no affiliation with TKO, it`s employees, management nor its` Public Relations Companies. I invest purely on my own Due Dilligence and/or from my broker and I understand I can make or lose monies on my investments.
I confirm I live in the uk and I am in no way connected to the American Stockmarkets, Nasdaq, Amex e.t.c. and nor am I in any way affilliated to any brokerages either here in the UK or the States. I confirm my line of business here in the uk is not connected to any money markets, stock brokers, normal brokers and all monies I have invested in America are purely mine from savings, property sales and uk property investments. I have recommended several business colleagues and acquaintances to my broker, of which all are not in anyway connected to the financial industries.
