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.