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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Taki who wrote (114276)	5/2/2003 1:50:47 PM
From: StockDung	Respond to of 150070

May 2, 2003 Telkonet…Newsletters tell you to buy as Insiders Sell Stocklemon Report on Telkonet (OTCBB:TLKO) Cash in Bank- $18,827 Accounts Payable- $518,865 Revenues Since Inception- 0, Zero, Nill, Zilch, Nada Paid Stock Promotion Sites- 7 Insider Share Sales in Past 12 months- 2 million shares+ biz.yahoo.com Loss Since Inception- $6,458,676 Shares Outstanding- 15,721,131 2002 SG&A Expenses (With no sales) $2,790,819 2002 Loss From Operations(3,155,336) Going Concern From Auditors Total Convertible Debt- $2 million + Notes Payable- $310,000 (all numbers from 3/31 10k) Telkonet is a company that is supposed to revolutionize the way internet is delivered into mass dwellings by use of power lines. Unfortunately, it is the opinion of Stocklemon that Telkonet is under funded and not qualified to compete in this space and their track record speaks for itself. In August of 2001, the company announced successful tests of the technology. In January 2002, the Company announced that it had shifted its focus from R&D to product sales. OVER A YEAR LATER AND STILL NO SALES…..NOT EVEN 1. In December 2002, the Company announced the installation of a product field trial at the Marriott Residence Inn-Landfall in Wilmington, NC. We called the Marriott and were told that they have a “few” boxes left but they have not decided on weather to use Telkonet or not. Stock lemon now believes that they can not even give these boxes away. As for Choice Hotels, the company has been invited to present to franchise owners…..there are no purchases or commitments yet. If the future is so bright then why are all the insiders selling while the newsletters they pay are telling us to buy? While the company has spent millions of dollars on salaries over the past three years, how much have they spent to revolutionize the internet transmittal business…..$520,000. Since inception the company has lost 6.5 mil. But only 520k was to develop this “great” product. COMPETITION If the company were to try and make a go at their business, they face stiff competition that are both better capitalized and are in a much better position to dominate the market. Telkonet has terrific disclosure in their 10k about the competition and the mountain that stares them in the face. Some of the companies that are currently providing the same service are Netgear, Linksys, and Siemens, Phoenix, Netgear. Gigafast, and on and on…. A phone call made to Linksys by Stocklemon gave us an interesting find. Linksys is moving away from powerline technology because they say it is a “thing of the past and everything is going wireless”. Which leads us to the proverbial question, If the future is so bright then why are all the insiders selling while the newsletters they pay are telling us to buy? STOCKLEMON HAS FOUND 7 PAID TOUTS….ARE THERE MORE? irspecialists.com themicrocapjournal.com investorsstockdaily.com Telkonet Communications, Inc. (TKLO) - ISD, Inc. has been compensated $10,000 cash per month for four months of service momentumtraders.net ericdavid.com howlett-research.com smallcapvoice.com Why spend all this money on promotion before any sales? Is there more insider selling? Conclusion Maybe this powerline technology was a novel idea back in 2000, but then again so was ETOYS. Now it is nothing more than a copycat technology with no sales. This whole report can be summed up with one question, If the future is so bright then why are all the insiders selling while the newsletters they pay are telling us to buy? Disclaimer: Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market.