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Spoke today with CEO Derek Pepler and COO Mike Spasov on several issues regarding the stock TMXO. I spoke with them for at least a hour. I took notes and will relay this information to the best of my ability and like anyone I am human and can and do make mistakes. So please do your own DD!
They have some exciting prospects and developments taking place and we should be hearing great things coming down the line. Here is outline of them and clarification on other issues including patents on technology etc.
Pepler admitted there have been mistakes made in the past and these are being corrected. One of which was a consulting firm which in his opinion did a poor job. Within the next couple of weeks TMXO will have a new Investor Relations firm out of Toronto who he believes has a very good reputation and working relationship with Tech. Analysis, Brokerage firms etc…
I confirmed the Outstanding number of shares is about 31.8 million shares with a very small float of 10.5 million shares. Pepler told me they would not be diluting the stock to pay bills etc… rather if any stock is issued it will be for added value to the stock and growth for the company. More on financing later!
They believe revenues for this year will be between 500 to 700K. Next year will see a dramatic increase because of current contracts not yet announced in the works.
Some of the upcoming PR’s: They have NDA with two North American companies (I believe these are utility companies) which are to be completed in the next few months. They hope to make announcement very soon regarding contracts in Africa and South America, with talks with Ecuador of a contract totaling 200 million dollars and currently have 3 of their engineers going down to Ecuador in the city of Manta which has a population of 200,000. Further contracts are being worked on in Saudi Arabia
The following PR explains how they can accomplish the above without dilution of the stock.
“MSI's AMR and grid monitoring technology enables utilities to replace and improve existing equipment. The solution automates the traditional process of reading electrical meters and performs remote connect and disconnect services. These and additional grid applications will be self-financed from the substantial increase in revenues that are recovered through the deployment of these technologies. As the local press reported, the country's utilities have estimated a potential savings of up to $250 million US in lost revenues per year”.
I asked Pepler for an example and this is what I was told: One of the contracts in South America has their working equipment in place for 8 months now. The utility was losing about 40 million a year in energy theft. A contract with a utility (51% of utilities in Ecuador is owned by the Gov’t) is for 25 years. The first 2 years 75% of the energy theft recovered is revenue for TMXO for the first 2 years. This percentage goes down over the rest of the 25 years. The meters are on a pole in a locked box so they can monitor what is going out and how the bill should read. Any discrepancies and the utility company can investigate and recover what has been lost. The laws down there allow them to recapture up to 2 years back.
Their plan is to grow organically and to partner up for a continual stream of revenue.
Some more exciting news is a JV with Blueport with technology being used in Hospitals.
Technology for security monitoring is another source of revenue. Example: on existing buildings that wants video surveillance incorporated such as a hospital. Pepler told me about doing a bid that was less than half of the other competitors. Reason? Their technology allows them to tie into existing power such as emergency light boxes installed already in a building. This means no interruption to the place of business to run new cables, wires and conduit etc… and much cheaper installation costs.
They are an integrator of proprietary technology which limits the need for TMXO to get patents. I can tell you and so could they “proprietary” is the way to go for smaller companies. If you have a patent on things anyone can pay a fee and get a complete set of plans from the US dept. of patents. An individual who invented the MRI used in the medical field had is invention stolen from him by GE who came out with their own and basically said so sue us. A small company fighting a huge company who has many attorneys to keep them buried for years till they are bankrupt is not the way to go. KFC has never patent their chicken recipe. To this day it is still proprietary!
Lawsuit and recovering what is owed to them. Pepler told me he has recovered half of it and the rest will be. The company that owes the money couldn’t pay as a new company and putting them out of business trying to recover the rest means you get nothing. Security is in place to recover the rest by the other company putting their shares in escrow until the debt is paid.
I asked if he could send out info. regarding the current management team and their backgrounds. Provide email link to have their shareholders updated regularly. He said he would!
I still believe this to be a great opportunity and we will see some great PR’s being generated in the near future. They plan on having releases regularly as more contracts and info become available.
They have some exciting prospects and developments taking place and we should be hearing great things coming down the line. Here is outline of them and clarification on other issues including patents on technology etc.
Pepler admitted there have been mistakes made in the past and these are being corrected. One of which was a consulting firm which in his opinion did a poor job. Within the next couple of weeks TMXO will have a new Investor Relations firm out of Toronto who he believes has a very good reputation and working relationship with Tech. Analysis, Brokerage firms etc…
I confirmed the Outstanding number of shares is about 31.8 million shares with a very small float of 10.5 million shares. Pepler told me they would not be diluting the stock to pay bills etc… rather if any stock is issued it will be for added value to the stock and growth for the company. More on financing later!
They believe revenues for this year will be between 500 to 700K. Next year will see a dramatic increase because of current contracts not yet announced in the works.
Some of the upcoming PR’s: They have NDA with two North American companies (I believe these are utility companies) which are to be completed in the next few months. They hope to make announcement very soon regarding contracts in Africa and South America, with talks with Ecuador of a contract totaling 200 million dollars and currently have 3 of their engineers going down to Ecuador in the city of Manta which has a population of 200,000. Further contracts are being worked on in Saudi Arabia
The following PR explains how they can accomplish the above without dilution of the stock.
“MSI's AMR and grid monitoring technology enables utilities to replace and improve existing equipment. The solution automates the traditional process of reading electrical meters and performs remote connect and disconnect services. These and additional grid applications will be self-financed from the substantial increase in revenues that are recovered through the deployment of these technologies. As the local press reported, the country's utilities have estimated a potential savings of up to $250 million US in lost revenues per year”.
I asked Pepler for an example and this is what I was told: One of the contracts in South America has their working equipment in place for 8 months now. The utility was losing about 40 million a year in energy theft. A contract with a utility (51% of utilities in Ecuador is owned by the Gov’t) is for 25 years. The first 2 years 75% of the energy theft recovered is revenue for TMXO for the first 2 years. This percentage goes down over the rest of the 25 years. The meters are on a pole in a locked box so they can monitor what is going out and how the bill should read. Any discrepancies and the utility company can investigate and recover what has been lost. The laws down there allow them to recapture up to 2 years back.
Their plan is to grow organically and to partner up for a continual stream of revenue.
Some more exciting news is a JV with Blueport with technology being used in Hospitals.
Technology for security monitoring is another source of revenue. Example: on existing buildings that wants video surveillance incorporated such as a hospital. Pepler told me about doing a bid that was less than half of the other competitors. Reason? Their technology allows them to tie into existing power such as emergency light boxes installed already in a building. This means no interruption to the place of business to run new cables, wires and conduit etc… and much cheaper installation costs.
They are an integrator of proprietary technology which limits the need for TMXO to get patents. I can tell you and so could they “proprietary” is the way to go for smaller companies. If you have a patent on things anyone can pay a fee and get a complete set of plans from the US dept. of patents. An individual who invented the MRI used in the medical field had is invention stolen from him by GE who came out with their own and basically said so sue us. A small company fighting a huge company who has many attorneys to keep them buried for years till they are bankrupt is not the way to go. KFC has never patent their chicken recipe. To this day it is still proprietary!
Lawsuit and recovering what is owed to them. Pepler told me he has recovered half of it and the rest will be. The company that owes the money couldn’t pay as a new company and putting them out of business trying to recover the rest means you get nothing. Security is in place to recover the rest by the other company putting their shares in escrow until the debt is paid.
I asked if he could send out info. regarding the current management team and their backgrounds. Provide email link to have their shareholders updated regularly. He said he would!
I still believe this to be a great opportunity and we will see some great PR’s being generated in the near future. They plan on having releases regularly as more contracts and info become available.
