Titan Files 8K- More Disturbing News
Titan filed an 8k today that had more, slightly distressing news. However, as I wrote over the weekend, this bad news is probably already fully priced into the stock.
They gave more information about the massive write downs the company took in its Q1 numbers for impairment of business. It’s simply amazing to me how rapidly a company can sabotage its own success through blunders.
I don’t know exactly how it all happened, but apparently they have closed down the entire telecom division, and plan to reopen it at a point in the future.
According to the filing, they stopped paying the distributors. The filing does not make it clear as to why or what happened, but nevertheless, there you have it.
As a result, they took some major impairment charges- while these were non-cash, the fact is they don’t have a functioning telecom business at this time, and therefore have given up about $30 million in formerly quarterly profitable business. It must have been some mess, and continues to be one.
They allude to a restart of the business with a major telecom company providing the minutes- who knows where that is going. However, it seems like someone might want this business if there is still indeed any business to be had.
On a further distressing note, the 8K disclosed the company received notice it would be delisted from the Bulletin Board as they have now been delinquent in the financial filings 3 times in the past two years.
The haven’t lost their listing yet, and the stock is still trading with an “E” on the symbol. They are going to have a hearing to make an argument that they still deserve their listing. If they lose, it is down to the obscurity of the pink sheets. Makes their former boasts about a NASDAQ listing just one big joke. They are barely hanging on to their BB listing now. It probably won’t happen for a month or so.
Last piece of news- Titan also disclosed it is suing the formers owners and management for USA Detergent for fraud in their disclosures related to the company’s performance. When you’re the victim of fraud it can be tough. However, this is more evidence that this management team simply isn’t capable of understanding what they are buying. I don’t believe anything of these guys are going to be recruited away by Warren Buffet’s Berkshire Hathaway in the near future.
So, now the company is Appalachian Oil- huge revenues- no profits, and this new shoe manufacturer they recently bought in Southern Cal.
The market cap is still an anemic $30 million, so all this bad news is probably already priced into the stock.
Any kind of good news break should send the stock a bit higher. I’m standing by with my fingers crossed. If you are a believer in buying when there’s blood running down the streets and no one wants to participate, this situation is tailor made for you.
I still believe it is a hold for now, pending more disclosure.
11 Comments
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Comment by Michael McDade — 2/17/2008 @ 1:11 pm
Any thoughts on the news reg the infringement suits, new strategic plan and its plan to list Xnergy on Nasdaq by May?
joe
Editor:
http://www.otcjournal.com/otcb/titans-triple-header-friday/617/
Comment by joe — 2/16/2008 @ 3:20 pm
Just as I suspected the recent bounce seems the result of insider info knowledge. As much as I am happy to see new strategies coming from the company it seems frenzied and somewhat schizophrenic. I have little confidence with the management ability to excute them based on past track records. I will be unloading this one on any decent bounce.
Editor: Tomorrow’s conference call might enlighten you as to their plans. In the interim- my current comments:
http://www.otcjournal.com/otcb/titans-triple-header-friday/617/
Comment by Zak — 2/16/2008 @ 2:51 pm
Lots of news out after the bell on Friday, and now a conference call on Tuesday, Feb 19. Any comments or will you wait for the conference call?
Editor: Please see my next posting.
http://www.otcjournal.com/otcb/titans-triple-header-friday/617/
Comment by Regis — 2/16/2008 @ 9:51 am
I worked at the Electronics division and know the real deal. Frank Crivello is the real owner. David Marks is just a front man. Bryan Chance just does what he is told and the other board members are puppets. Who knows what is on their minds. The electronics division is the only segment that is profiting. The only problem with that is they have not invested in the future with technology. Not a dime has been spent in new equipment since conception. This stock is going to hell in a hand basket. If you buy and sell at the right time there is a lot of potential to make money.
Editor: Modified 2/18- I can tell you the individuals you mention vehemently disagree with your characterizations. They view your comment as untrue and slanderous. I’m quite certain David Marks would not appreciate being called a “front man”, and the real owners are the shareholders. If you want to have credibility in personal attacks, you should probably identify yourself. With regard to investing in the future or spending capital on equipment, I have no knowledge of the facts in that arena.
Comment by Anonymous — 2/15/2008 @ 12:10 pm
The stock has almost doubled in a few days from its miserable downward spiral. There hasn’t been any news to prompt this type of rebound. If anything else, it should have continued to nose dive in the absence of new developments. It makes me wonder insiders have new info and are taking advantage of it just as they were the first one to bail out starting late last year. Do you have anything new from the large share holder or anyone else connected with the company.
Editor: No. I had expectations of some more clarification from the company by now, but nothing has been forthcoming. If you had the courage to buy it around $.30, it was a nice trade. I suspect it probably wants to be about a $.40 to $.50 stock for the time being, with price adjustments as we learn more.
Comment by zak — 2/14/2008 @ 2:56 pm
I am sure I speak for quite a few OTC readers who are “stuck” with TGLE and “moving on” at 30 cents is not the option we want to choose……I know that you do not have a crystal ball what will happen with the company but you do know about the “major shareholders” and their entry points? I assume these big dogs had intimate knowledge of the plans and caliber of mgt before they invested at much higher levels then we are at now. I hear 75% of the stock belongs to these guys and are they still in? I like to follow those guys. If they are still around and still own 75% of the company then I think there is hope. But if the big boys have given up on TGLE and the stock is now only owned by OTC readers and similar small fries (no insult intended…..) then I see much less hope. So my question is this: Are these initial investors still owning 75% of the stock and at what prices did they get in the game?
Editor: You would have to plow back through tons of old SEC filings to figure out where they got in. They have been involved in this company for years. However, if they do, or have been selling, an SEC filing is required as they are “control persons”. I am not aware of big sales, but haven’t studied the filings. I have spoken with him, and he swears they are going to turn the company back around. However, those are just words. I only care about results. I probably should have simply told everyone to dump the stock and get out. If it gets down to $.20, which seems likely at this point, I might be tempted to buy some on a speculative bounce.
Comment by Carl F — 2/11/2008 @ 2:56 pm
I’ll say it again your crazy well at .38 cents what else can you do but hold They will move on and the share holder will be the only on to lose money
Editor: Entirely possible.
Comment by Rob — 2/8/2008 @ 9:08 am
At this point, I have to agree with you…. I am a holder and may throw some good after bad by virtue of what should be their revenues and hopefully profits… Have you spoken with management at all…. with more revenues, will they just dig a deeper hole….
Editor: I have spoken with a large shareholder who says they will turn the company around. I don’t know if I believe him. They might have done too much damage. We’ll have to stand by and wait for some positive developments.
Comment by Rick — 2/7/2008 @ 3:27 pm
Hmmm, must be the same management team that run “Markland Technologies”.
Editor: If they were totally incompetent bunglers, then I would agree.
Comment by Darrol — 2/6/2008 @ 5:57 pm
your crazy
Editor: of course I am- look what I do for a living- cover idiots like this bozos at Titan- however, what in particular am I crazy about today?
Comment by Rob — 2/6/2008 @ 12:03 pm
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HIHO!
I’m nervously excited about the latest news of spin-offs of several divisions into separate companies. What’s YOUR take on this new development? I’m bullish…
Michael
Editor:
Published this AM- http://www.otcjournal.com/otcb/titans-triple-header-friday/617/