www.murphyanalytics.com/uploads/TLNUF_Initiation.pdf
Interesting to see that this report talks about a possible $0.27 in the coming quarters with 81000000 O/S shares. If we now count 3 billion o/s shares, it's still around a fully diluted value of $0.007, not bad
With a negative cash balance as of 6/30/13, a working capital deficit of ($40,000), and no reported revenues, TLNUF is dependent entirely on new capital to continue operations. The Company is seeking to raise $2.5 million in capital to fund development, capital expenditures, acquisitions, sales & marketing, and general & administrative expenses. If the Company is able to raise sufficient capital to continue operations, there is a significant market opportunity that remains in Telecorp’s target markets, especially among small to medium sized businesses (SMB). Announced 9/30/13, Telecorp’s agreement with the Retail Merchants’ Association of Canada (RMA) targets this SMB market opportunity and is consistent with the Company’s identified sales strategies. The Company1has made its business plan, investor presentations, and financial projections available at OTCMarkets.com. While a loss is projected for 2014, the Company is targeting $2.7 million in net income in 2015 growing to $21.8 million by 2018. For illustration purposes only, if it is assumed the Company issues shares to fund a $2.5 million capital raise, the implied outstanding shares may increase to 105 million, implying EPS of $0.034 / share in 2015 and $0.59 / share in 2018 if the Company hits its revenue, margin, and expense projections. With relevant market benchmarks trading at 16x – 21x P/E, the implied price potential for TLNUF may be $0.60 share in 2015. Discounted at 50% for 2 years, the implied price potential is $0.27 over the coming quarters if Telecorp is able to begin to demonstrate the ability to raise capital and execute its business plan. While the possible range of prices for every stock is a theoretically unlimited upside to a downside of $0, and although the Company faces significant financial and operational challenges, there is an attractive and growing opportunity in Telecorp’s target markets.
