They seem need to do about $4 millions business each quarter just to break even. but they managed to do about $3m so far, therefore another quarter of losing money. The new sales staff bring in about additional 3 million backlog for the next quarter, but they didn't not foresee they would also need more engineers when orders come in. However, it shows there is a market for their products. With bigger one of the 2 government contracts ending in Jan 2014, possible college install jobs during winter break and the other backlog orders, the next quarter might not be as "Slow".....load it up when it gets below $0.15
Newly hired sales staff indeed produced much more sales with 3 times backlog ($3 millions?). The bottle neck is now on the deployment team. The next quarter should be better with this backlog plus the college orders can be fulfilled during their winter recess.
These automatic scheduled buys are small and dollar-averaging in natural. They do not indicate if the company are having a good next quarter , but rather an indicator of confident in long term.
This stock will go down to lower teens if more loss is reported on Nov 14th. 20% increase in number of staff should translate to higher earnings within two-three quarters.
While TKOI's customers use their energy-saving as collateral to get a loan to pay TKOI for the install, TKOI missed the "making-money-twice" opportunity (once to sell the technology, and once to be a banker to help its customer to buy the technology). More importantly, they are missing the unique chance to get ahead.
It comes down to only, say, 5-10 million dollars (operational money + sales tax liability). TKOI seems just too small to handle its own technology and its market. I wish someone with deeper pocket can buy TKOI out to truly grow it. Can it be Mitt Romney? Can the new CFO do something?
1) Paoni sold 120,000 shares so far, not 40,000
2) Paoni did not purchase these shares but got from "non open market acquisition"
If you look closely, almost all insider purchases were happened at the same time of each month for similar number of shares, an indication of scheduled periodical purchases, most likely as part of their compensation package. I wonder if TKOI forced them to have these shares with some restrictions.
Not sure if "300" is a correct number. If it is, it means we have some investors who could owns many millions of shares. That is based on the fact that there are only 2.1% shares owned by institutes, the "300 individual investors" then own 98% of shares (110M shares). That could explain the sharp up and down on stock prices. Most sell and buy are between these 300 individuals, making/losing money from/to each other.
I would argue that TKOI's business model of making money only from initial install (labor and parts) is not wise, regardless if it is a large or small contract. If customer's energy saving is so great (40%?), TKOI should take a cut from the saving as the payment for the system, at least for number of years. This will put TKOI in an auto-pilot mode with much bigger recurring revenues. And with no (or much less) upfront cost, they can attract much more customers. Imaging if each of their customers pays TKOI with 50% of their monthly energy savings, and for many years.....
I am sure at some point they will. You can see their main office in Google Map and the parking lot can hold only about 200 cars which they might even have to share with other tenants of the building.
TKOI has at least 8 more full time positions open at this time: 2 sales, 4 engineers/technician, 1 customer service and 1 manager. It seems they are getting ready for their high volume seasons and the management is confident to keep all 115 (or more) staff busy for years to come.
There are many nervous sells going on right now, before the earning release in couple of days. Maybe the "jerk" is correct this time?
Although no record of insider selling so far, but you can never sure it was not from some relatives/friends of an insider. On the other hand, if this has nothing to do with any of the insiders, no need to worry.
600k shares can make about $60k profit even assume all were bought @0.12/share (52 week low) price.
Did I hear that CEO saying TKOI's production will go into private residence market in next 12 months?
If the current level of the recurring revenue of 1 million/quarter can be increased to $3 mils/quarter from fees and maintenance contracts, TKOI will have constant positive cash flow and be less affected by new sales fluctuation.