Billionaire Boys Club Member Forum (BBCMF)

[rrufff]

TTLO - .55 this may be one to watch or play very carefully. It barely trades so it's hard to buy and sell.

Revenues running $5 million up from $4 million. .04/Q in net income approx.

As of September 8, there were 5,111,590 shares

Should be between $2-$3, but for the fight for control currently being waged.

I think whoever wins will take it private or it gets taken over much higher.

They are doing great on paper. Revenues up significantly, margins increased and are high. Expenses are low, shoe string.

What's holding it back? Apparently, there is a power struggle between management and a subsidiary that had been acquired and now, some how, has > 51% of the share vote.

Here's some snippets from the filings if anyone is interested:

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Note 1 - Basis of Presentation

Torotel specializes in the custom design and manufacture of a wide variety of precision magnetic components, consisting of transformers, inductors, reactors, chokes and toroidal coils, for use in commercial, industrial and military electronics. Torotel also designs and distributes ballast transformers for the airline industry. Approximately 97% of Torotel’s sales are derived from domestic customers. The accompanying unaudited consolidated financial statements reflect the normal recurring adjustments, as well as an adjustment to reflect real estate held for sale to the net realizable value, which in the opinion of management are necessary to present fairly Torotel’s financial position at July 31, 2005, and the results of operations for the three months ended July 31, 2005.

Overview

Torotel, Inc. (“Torotel”) conducts business primarily through two wholly owned subsidiaries, Torotel Products, Inc. (“Torotel Products”) and Electronika, Inc. (“Electronika”). In addition, Torotel has a 15.27% equity interest in Apex Innovations, Inc. (“Apex”).

Business Outlook

Torotel Products projected an overall increase in new order bookings of 28% for fiscal year 2006. The rate of new order bookings during the first quarter was up 178%. The rate for magnetics was up 32%, with the balance of the bookings increase represented by the $1,395,000 contract received for the potted coil assembly in May 2005. As a result, the order backlog was 42% higher than a year ago. The primary factors that drive gross profit and net earnings for Torotel Products are sales volume and product mix. The gross profits on mature products/programs and larger transformer devices tend to be higher than those that are still in the prototyping or early production stages and simpler inductor devices. As a result, in any given accounting period the mix of product shipments between higher and lower margin jobs has a significant impact on the gross profit and net earnings of Torotel Products.


Three Months Ended July 31, 2005 Compared With Three Months Ended July 31, 2004

Net sales increased 26%. The net sales of Torotel Products increased nearly 24% from $986,000 to $1,219,000. This increase is attributable to higher demand for molded coils used in down-hole drilling applications, higher shipments of the potted coil assembly for the Hellfire II missile system, and higher demand from Torotel’s aerospace markets. The net sales of Electronika increased nearly 167% from $18,000 to $48,000; however, the current quarter’s sales volume is slightly lower than the previous three quarters, which is representative of the downward trend in Electronika’ sales.

Gross profit as a percentage of net sales increased 11%. The gross profit percentage of Torotel Products increased 11% because of higher sales volume without a comparable increase in fixed production costs, and lower labor costs due to higher levels of overtime and inefficiencies encountered with the training of new production personnel in last year’s quarter, which was in conjunction with the move to Olathe. Electronika’s gross profit as a percentage of net sales remained unchanged.