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Forum - Wall Street Pit (Tel-Instrument Electronics - TIK)    Stock Due Diligence for All

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From: Meow4Me (Rep: 13) reply to pmonyDate: 11/12/2014 16:04
Forum: Wall Street Pit - Msg #2511058 - List TIK msgs Thread #673693821 (Rec: 0)
Re: reports few days Big Guidance coming. DD POST Very rare to know a double/trip...

When do they report?



Reply to pmony - Msg #2511056 - 11/12/2014 16:02

reports few days Big Guidance coming. DD POST Very rare to know a double/triple so early & before it happens but we do know TIK will be an upcoming multi bagger. Some facts & figures TIK has 3.2 million shares outstanding & Insiders own 1.5 million shares & long time holder V Dowling owns over 300K in his Roth IRA. TIK a 60 year old U.S co. has a monopoly on worldwide Mode 5 test sets the newest version of Friend or Foe test REQUIREMENTS. This upgrade is not voluntary & the entire armed forces including all our NATO allies are upgrading to this mode 5 requirement over the next few years. As always the Government dragged it's feet the last 2 years causing TIK's sales to decline in 2012 & started to come back in 2013. The real reason all investors s/b excited to do DD on TIK is the fact that all 3 of the major contracts TIK has are in full rate production as we speak & the 3rd quarter will mark the first full quarter of such sales.

Here is why this turning point will be important to wise investors

TIK has a fixed SG&A cost basis and also R&D has come down as fully expensed & now in commercial roll out mode. So the more revenues TIK does at 40% margins it all falls to the bottom line.

TIK is currently profitable at 4 to 4.5 million a quarter but as stated in the last CC the 3 full rate production contracts alone will generate 6 million a quarter not counting foreign sales, commercial sales to airlines, legacy sales & service & repair work.

So at a conservative 6.5 million in sales starting in 3rd Qtr which BTW TIK is half way through the 3rd QTR at 40% margins = 2.6 million typical SG&A & R&D costs = 1.1 to 1.2 million a quarter giving TIK 1.4 to 1.5 million in operating income before taxes but TIK has 7.8 Million in Federal NOLS & 7 Million in State NOLS so TIK doesn't & wont be paying taxes for the next few years...

That would give TIK adjusted EPS of .43 to .46 cents a quarter starting in 3rd & contracts are all long term multi year deals at steady quarterly outputs. If you look at their earnings release you will see TIK reports GAAP only & shows taxes paid but reconciled in 10Q's & 10K's cash flow statement.

Also on last CC CEO referenced an upcoming win expected on the F-35 fighter jet program as well as new non military wins. Keep in mind due to the nature of Government orders TIK pays no commission on these types of orders & again SG&A fixed so the higher the revenues the more profitable.

Not sure what a company like TIK will fetch in the markets doing $1.60 to $1.80 in adjusted EPS especially with such high insider ownership & tiny 1.4 million share float but I believe double digits are in TIK's near term future.

Pull up a 5 year chart & you will see prior to the very weak 2012 numbers TIK traded primarily in the $6.00 to $9.00 range at half the upcoming sales we expect starting in the 3rd Qtr...TIK is thinly traded & very tough to get shares but I expect that to change once word really gets out as what to expect going forward at $1.60 EPS ++

GLTA & make $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
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