Telkonet, Inc. (OTCMKTS:TKOI) Surges on Record Volume
For the most part the stock of Telkonet, Inc. (OTCMKTS:TKOI) remains unnoticed by the market and although it is actively traded it rarely finds its place among the top traded ones. Yesterday though traders rushed in to the company and managed to shift the record for TKOI number of 1.7 million shares. In comparison the previous session saw less than 200 thousand shares being traded. As a result the stock gained exactly 25% in value and closed at its high of the day at $0.25 per share.
Despite being a pennystocks, TKOI are a legitimate company with real operations. TKOI consits of two business division – EcoSmart Energy Management Technology and EthoStream High Speed Internet Access Network. EcoSmart offers energy management and saving devices like thermostats, occupancy censors, outlets and light switches while EthoStream provides internet service to more than 5 million users monthly.
The company has been able to achieve a profitable bottom line on a couple of occasions but a more prolonged profitability is for now evading them. The latest financial results disclosed by the company are for the quarter ending September 30:
- $799 thousand cash
- $3.9 million total current assets
- $4.7 million total current liabilities
- $3.5 million revenues
- $480 thousand net loss
Compared to the same period last year revenues have increased but nearly all of the other numbers have taken a step back. The positive working capital has now turned into a deficit of nearly $900 thousand. At the same time the accumulated deficit is reaching some rather worrying amounts of $119 million. In October they were able to finally settle the patent infringement lawsuit that was filed against them in 2008 by agreeing to pay a total of $115 thousand in twelve installments of $9583.
For the nine months covered by the report 438 of the companie’s series B shares were converted into more than 16 million common shares leaving only 55 series B outstanding. Still the dilution is quite significant with 125 million outstanding common shares out fo the 190 million authorized.
If TKOI are able to boost their operations while cutting on the expenditures more and more investors might start to invest in the company. But for now the risks around them need careful consideration before any trades are attempted.
Yesterday the pump that has been going on for Makism 3D Corp (OTCBB:MDDD) crashed horribly when the stock wiped more than 40% of its value in a single day. The stock opened at $1.12 but at the end of the session had dropped to just $ 0.6 after 6.8 million shares got dumped on the market. On the other hand Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) finally passed the $1 mark once again after closing at $1.02 on the highest traded volume since the end of their pump back in October.
