STOLEN FROM THE YAHOO BOARD:
Some MM points about TKO (Not rated) 42 minutes ago Some M.M. comments: In regards to the company's recent lows, I think this is what happens when Wall Street sours on a management, and then a big downturn hits. There are so many other ideas to buy, why would they step up to the plate for a CEO who doesn't go to the office every day?
Referring to the July 30 filing regarding a $1.5 million bridge loan, carrying 6% interest and payable out of the company's next financing, or by January 28, 2008. The lender, GRQ Consultants, got a $25,000 fee and issued five-year warrants for 359,712 TKO shares at $4.17 a share. Those are not onerous terms, and this is not a toxic convertible. I think it's neutral to mildly positive news.
The company has won the potentially huge EDS/Department of Defense contract. They've overpaid for an acquisition and then taken their medicine by spinning it off. The main problem is that the CEO is trying to run the company from hundreds of miles away, which may work OK with an Internet start-up, or even a Fortune 500-size enterprise (John Malone of cable TV fame did it for years), but it is no way to run a small-cap public company. I don't think that TKO is going broke, as evidenced by the terms of the recent $1.5 million bridge loan.
They are the leader in in-building Broadband over Power lines, and have won key contracts against their competitors.
Encouraged by yesterday's announcement that the Board has appointed Jason Tienor, the founder and CEO of recently-acquired EthoStream, as Chief Operating Officer, and he'll be responsible for Telkonet, EthoStream and Smart Systems International. That's all the operating divisions of TKO.
I found the press release language interesting:
"Having worked closely with Jason for the past year, he has proven to be an exceptional business leader and a strategic planner, coupled with strong technical expertise. He has excelled by developing, from the ground up, one of the largest hospitality networks in the U.S. with unparalleled, end-to-end customer support. With Jason's drive, expertise and dedication to quality, Jason is highly qualified to drive our sales and take the company to the next level."
"Jason is highly qualified to drive our sales and take the company to the next level." To me, "taking the company to the next level" means he will move up to CEO shortly, and that is the reason the stock went up 20 cents in today's bloodbath. Jason is our White Knight, and we should stick with TKO and give him a chance to run it right.
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