QualTek Services Inc (fka QTEKQ)

[dlewisfl]

sc: the news today is pretty much what I posted. Although they made it look pretty with their "spin" comparing it to quarter immediately preceding. Of course, the numbers in that quarter were down significantly from the previous year, and that was all due to losing the GMAC contract last June. If you look at December '05, revenue was $535,521. So here we are with March 2007 revenue at $594,064. Not much progress has been made in 15 months, they have spent nine months getting back to the level they were at when they had GMAC. Still, a 19% increase over the previos year's same quarter is a good thing, especially given that they lost a major customer. However, at what cost was that revenue gain made? Since there's nothing in the PR about net gain/net loss, it's safe to assume it isn't any better than last year, and probably worse with the dilution that's happening. How many more shares are out there as a result of the Cornell deal? I guess we'll see when the actual filing is made. There were 134,832,516 out there in February '06, there were 152,449,773 out there in February '07. At these prices, the dilution rate will only increase - wonder how many are being sold into this news.

Like I said when they signed with Cornell, they need something HUGE so investors will absorb the shares. So far, they have not done that, they have grown at a very small clip due in part to losing a major client, and the PPS reflects that.