Telkonet Inc (fka TKO)

[hueyflier]

Glad to see the news finally out, and glad that the cash burn rate for TKO will be reduced. However, I do have some questions about the transaction that make me wonder if this is some sort of spin job. First, if the opportunities for MST are so great, why wouldn't it make sense for them to remain part of TKO and add to OUR shareholder value. I understand that Telkonet still owns over 50%, but why sell off part of your business that is expected to do well down the road? If the value of MST declines from here, which I assume it will short term given the cash burn they contributed to, that still hurts TKO indirectly.

I am sure there is more to this than I am seeing at this point, but spinning off a piece that is a huge cash drain only seems to be a good idea if you are completely divested and get a decent price. That being said, if we do get to $25 million in revenue as Walrus states, with the reduced expenses, it will be hard to hold the PPS down.

Looking for comments, not attacks or whining...