Replies to post #167 on Hidden Gems (GEMorJAM)

[rrufff]

TTLO .95 is an interesting play that some may want to take a look at - Barely trades and it's impossible to predict what your purchase price or sale price would be.

Great numbers quarter after quarter, products in demand military and aerospace.

There is a fight going on for control among the key shareholders and management. Without this, the numbers, which are excellent, would have been even better.

There are notes in the Q about possible takeover, but you can feel the tension.

Given the numbers this could be a $2-$3 takeover. Revenues of perhaps $1.25 a share and possible earnings of .12-.16 a year.

For more info - see #msg-8018915 and below info from the most recent Q.

This relates to the fight for control and possible takeover.

Item 4. . . .

The Torotel Board of Directors had further discussions with the Caloyeras Partnership following adjournment of the meeting and at various other times, and understands that the Caloyeras Partnership is considering making a proposal to acquire Torotel if adequate funding can be obtained. Unless and until the Caloyeras Partnership has the financial means to pursue such a transaction, however, the Torotel Board of Directors does not presently plan to spend additional company resources or management time to discuss the terms of any proposed transaction with the Caloyeras Partnership or explore any other strategic alternatives available to Torotel. At this time, the Torotel Board of Directors believes that it is in the best interest of Torotel and its shareholders to continue the employment agreements of Torotel’s chief executive officer and chief financial officer and to focus management time and company resources on Torotel’s ongoing business operations.

HERE ARE NUMBERS FOR THE LATEST QUARTER

Results of Operations

The following management comments regarding Torotel’s results of operations and outlook should be read in conjunction with the Consolidated Financial Statements included pursuant to Item 1 of this Quarterly Report.

The discussion and analysis of the results of operations include the operations of Torotel, Inc. and its subsidiaries, Torotel Products, Inc. and Electronika, Inc. While each company’s results are included in the following discussion, segment reporting is not applicable because the products offered are similar in form and function, and target similar markets.

Six Months Ended October 31, 2005 Compared With Six Months Ended October 31, 2004

Net sales increased 25%. The net sales of Torotel Products increased 25% from $2,100,000 to $2,623,000. 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, higher demand from other segments of the military, and shipments of the new capacitor assemblies. The net sales of Electronika increased 26% from $72,000 to $91,000; however, the current quarter’s sales volume is slightly lower than each of the previous three quarters, which is representative of the downward trend in Electronika’ sales.

Gross profit as a percentage of net sales increased 12%. The gross profit percentage of Torotel Products increased 12% 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 first half of last year, which was in conjunction with the move to Olathe. Electronika’s gross profit as a percentage of net sales remained unchanged.

Engineering expenses, applicable only to Torotel Products, increased nearly 20% from $102,000 to $122,000 because of higher payroll costs associated with the hiring of an additional engineer and higher training costs. Management does anticipate an increase in the present level of engineering expenses as additional training costs are planned.

Selling, general and administrative (SG&A) expenses increased 35%. The SG&A expenses of Torotel, Inc. increased 143% from $72,000 to $175,000 primarily because of additional auditing fees of $32,000 absorbed in the first half of fiscal 2006, $22,000 incurred for preparation and mailing of the proxy materials and other costs associated with annual shareholders’ meeting, a $16,000 increase in the value of the Stock Appreciation Rights granted to non-employee members of the board of directors, a $14,000 increase in professional fees associated primarily with evaluating the proposed takeover of Torotel by Peter B. Caloyeras and the Caloyeras Family Partnership, a $9,000 increase in directors fees for required board committee meetings and special telephonic meetings held in conjunction with the proposed takeover, $7,000 incurred for preparation of documents for electronic filing with the SEC, and a $3,000 increase in costs for directors and officers liability insurance. The SG&A expenses of Torotel Products increased 20% from $474,000 to $569,000 primarily because of higher payroll costs of $29,000, a $25,000 increase in training costs, an $11,000 increase in costs for repairs and maintenance, a $9,000 increase in fast-pay discounts taken by certain major customers, a $5,000 increase in sales commissions, a $5,000 relocation bonus for a new employee, a $5,000 increase in travel costs, a $4,000 increase in computer software costs, a $4,000 increase in equipment rentals, and a $3,000 increase in advertising costs. These increases were offset by a $5,000 decrease in property taxes. The SG&A expenses of Electronika decreased slightly from $16,000 to $14,000. Management does anticipate an increase in the present level of SG&A expenses as additional training costs are planned.

Amortization costs, entirely attributable to Electronika, increased slightly from $36,000 to $37,000 (see Note 6 of Notes to Consolidated Financial Statements).

Interest expense decreased 10%. The interest expense of Torotel, Inc. remained unchanged at $26,000. The interest expense of Torotel Products decreased from $43,000 to $36,000 because of a lower debt balance.

There was no earnings impact in the first half of fiscal 2006 from the investment in Apex. Equity in loss of investee was $76,000 in the prior year.

Impairment of real estate increased $36,000 due to reducing the book value of the real estate held for sale in Grandview, Missouri to its contracted price, less estimated selling and closing cost (see Note 9 of Note to Consolidated Financial Statements).

Gain on settlement of debt increased because of the $35,000 gain that resulted from the settlement of an old liability at an amount lower than originally recorded.

Gain on sale of real estate increased because of the $110,000 net gain that resulted from the sale of the real estate parcels located in Grandview, Missouri (see Note 9 of Notes to Consolidated Financial Statements).

For the reasons discussed above, the consolidated pretax earnings increased from a loss of $123,000 to a profit of $356,000. The pretax loss of Torotel, Inc. decreased from $174,000 to $166,000. The pretax earnings of Torotel Products increased from $60,000 to $518,000. The pretax earnings of Electronika increased from a loss of $9,000 to a profit of $4,000.

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

Net sales increased 24%. The net sales of Torotel Products increased 26% from $1,114,000 to $1,404,000. This increase is attributable to the same reasons as outlined above in the year-to-date net sales comparison. The net sales of Electronika decreased 20% from $54,000 to $43,000.

Gross profit as a percentage of net sales increased 13%. The gross profit percentage of Torotel Products increased nearly 14% because of the same reasons as outlined above in the year-to-date gross profit comparison. Electronika’s gross profit as a percentage of net sales remained unchanged.

Engineering expenses, applicable only to Torotel Products, increased 30% from $50,000 to $65,000 because of the same reasons as outlined above in the year-to-date engineering expenses comparison.

Selling, general and administrative (SG&A) expenses increased 47%. The SG&A expenses of Torotel, Inc. increased 209% from $33,000 to $102,000 primarily because of $22,000 incurred for preparation and mailing of the proxy materials and other costs associated with annual shareholders’ meeting, a $19,000 increase in the value of the Stock Appreciation Rights granted to non-employee members of the board of directors, a $17,000 increase in professional fees associated primarily with evaluating the proposed takeover of Torotel by Peter B. Caloyeras and the Caloyeras Family Partnership, a $9,000 increase in directors fees for required board committee meetings and special telephonic meetings held in conjunction with the proposed takeover, and a $2,000 increase in costs for directors and officers liability insurance. The SG&A expenses of Torotel Products increased 26% from $233,000 to $294,000 primarily because of a $27,000 increase in training costs, higher payroll costs of $13,000, a $9,000 increase in repairs and maintenance costs, a $5,000 increase in fast-pay discounts taken by certain major customers, a $4,000 increase in sales commissions, and a $3,000 increase in equipment rentals. The SG&A expenses of

Electronika decreased slightly from $8,000 to $7,000. Management does anticipate an increase in the present level of SG&A expenses as additional training costs are planned.

Amortization costs, entirely attributable to Electronika, decreased 22% from $27,000 to $21,000 (see Note 6 of Notes to Consolidated Financial Statements).

Interest expense decreased 17%. The interest expense of Torotel, Inc. remained unchanged at $13,000. The interest expense of Torotel Products decreased from $22,000 to $16,000 because of a lower debt balance.

There was no earnings impact in the current quarter from the investment in Apex. Equity in loss of investee was $48,000 in the prior year’s quarter.

Gain on sale of real estate increased because of a $5,000 net gain that resulted from the closing on the sale of a portion of the real estate located in Grandview, Missouri (see Note 9 of Notes to Consolidated Financial Statements).

For the reasons discussed above, the consolidated pretax earnings increased from a loss of $37,000 to a profit of $164,000. The pretax loss of Torotel, Inc. increased from $94,000 to $115,000. The pretax earnings of Torotel Products increased from $60,000 to $281,000. The pretax loss of Electronika decreased from $3,000 to $2,000.

[midastouch017]

Re :CTCH,

Halfway to Target,




Dubi

[midastouch017]

>>CTCH: Price Today:80 cents Target Price: $2.00
Target Date:July 2006.<<

T-Online to Offer Email Security Services Based on an Integrated Solution from VirusBuster and Commtouch

Monday January 16, 4:00 am ET

T-Online, a Subsidiary of Magyar Telekom with over 2.7 Million Subscribers, Will Enhance Its Messaging Services with Commtouch Anti-Spam and Zero-Hour Virus Protection Technologies

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 16, 2006-- Commtouch® (NASDAQ:CTCH - News), the developer of ground-breaking Recurrent Pattern Detection (RPD)(TM) technology for real-time anti-spam protection, announced today that its anti-spam and Zero-Hour(TM) virus protection technologies, integrated into VirustBuster products, will protect T-Online's 2.7 million mailboxes throughout Hungary. This will be possible thanks to a recent agreement between VirusBuster and T-Online, which is a subsidiary of Magyar Telekom, the biggest telecommunications provider in Hungary and the largest ISP in the country.

(#msg-9271971)

Dubi

[midastouch017]

Re:CTCH

Intoto Integrates Commtouch High Performance Anti-Spam and Zero-Hour Virus Protection Technologies Into iGateway Software

Monday February 13, 4:00 am ET

Commtouch's Unique Email Security Technology Adds Ideal Protection for Residential Gateways and Enterprise Security Appliances

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 13, 2006--Commtouch® (NASDAQ:CTCH - News), the developer of ground-breaking RPD(TM) technology for real time anti-spam and Zero-Hour(TM) virus protection, announced today that it has signed a licensing agreement with Intoto, a leading provider of network-centric secure gateway software for networking and communications original equipment manufacturers (OEMs).

Intoto's selection of Commtouch is seen as another affirmation of the suitability of Commtouch's RPD technology for the most advanced network security equipment. Commtouch's email security solution will now be available on small office-home office (SOHO) devices, residential gateways, and security appliances.

(#msg-9688554)

Dubi

[midastouch017]

CTCH: Price Today:80 cents Target Price: $2.00
Target Date:July 2006.


Date July 2007, price $ 2.44

:)

Dubi