Message 21799889
Chris Forte 10/17/2005 12:58:17 PM
I became enamored with a pink sheet company enough to get on a plane and fly down to Florida to take a look for myself and shake hands with the CEO. Like most of us here I'm a bit leery of pink sheet companies. However, I've kicked the tires enough on this one to feel like it's in the "special" category.
The company is Telesis Technology Corp.(TLST) (TLST.pk)
Share price: .40 x .50
19.3M shares outstanding
Float: 2M
Approximately 20 employees
Last quarter (Q2 June 30) $962k vs $330k, net income $73k (0.00 eps)
TLST designs, develops, tests, manufactures, and markets a diverse range of aerospace and defense products for commercial and governmental customers. They are a "boutique" that makes high end, high margin assemblies etc. The DOD accounts for roughly 80% of their business.
TLST was formed in June of 2002 and began trading on the pink sheets September of 2004.
They are not a developmental stage company - they sell products and make money. Revenues are growing fast. I'm estimating they could do close to $4M in revenues in 2005.
They show a very good growth curve:
2003: $750k
2004: $1.4M
2005: $4M (my guesstimate)
TLST is working diligently to be listed on the BB or AMEX in the very near future. They have been filing voluntarily. A better listing will undoubtedly give them better visibility. IMHO many investors know of TLST but are waiting for the listing before jumping in or initiating coverage.
The company is located in Palmetto, FL. They are also nearing completion of a new facility in Superior, Nebraska. This will give them an outstanding custom built, centrally located base to ship from. The city of Superior was very supportive financially of their new distribution and assembly building and the local labor pool will be beneficial. Overall this was a GREAT deal for TLST.
I visited the Palmetto, FL headquarters and met with the CEO, Mr. Hasit Vibhakar. In short I was very impressed with him. He is hard working, driven, and thinks big. He has a strong background in defense contracting. He has an engineering degree and an extensive background in sales, having previously worked for Harris Corp. He knows the defense landscape.
This company is his baby and it shows. He is heavily invested in his own company. He is determined to grow the company without giving it away. He's building a story based on revenue growth and profitability - this is not a pie-in-the-sky pink sheet. I was very impressed by his focus on building the company based on revenue growth and profits, not on hype or promises. He knows if he "builds it they will come." I like that attitude - a lot.
In a nutshell:
TLST is unknown.
They are preparing to move from the pinks to BB or AMEX.
Low outstanding, low float.
CEO has vision and a good background.
3 years of outstanding revenue growth.
Building out their infrastructure.
This is a story that's only in the first or second inning. |
