Attention investors who like to make profits. TTGL is ready to go- I can smell it. It maybe next week, or it may be next month, but the action in the stock suggests to me it is close to another big leg up.
Let’s start with the chart, and go from there.
This is a weekly chart- each bar represents a whole week, rather than an individual day, and it goes back to when I first featured the company at $.85.
The January to July time frame frustrated investors as the stock just couldn’t get through that $1.40 mark. There was a toxic seller, and the market was not robust enough to eat through the supply. Once it was finally accomplished, the stock scampered up the chart nicely.
We are experiencing a similar consolidation phase now, but I believe it will be much shorter- why? volume. Look at that huge volume bar this past week. In fact, TTGL traded 1.2 million shares on Thursday after the company issued its guidance. This is by far the highest volume day in over 2 years, and the highest dollar volume day in this stock’s entire history. It was huge. The will break out will happen much faster because the volume is much higher.
Friday, TTGL finally announced it will be spinning out the money losing PCB division one of two ways- either way a big benefit to shareholders.
Some investors might have been disappointed that the stock did not trade higher this past week, but I see it the opposite way. Whoever offloaded a pretty big piece of stock gave you an opportunity to continue to accumulate before it makes its next big move. This might be some left over stock from past toxic indiscretions, but we are rapidly nearing the end game of this company’s past financing faux pas, and moving to a much higher level shareholder base.
I strongly recommend the continued accumulation of TTGL with an eye on another double. Could take six months to a year, but worth waiting for. Fundamentals suggest a far higher valuation.
Comments and questions are welcome.
1 Question, and 1 piece of feedback for the company:
1 –
When is the FY07 earnings going to be released for TTGL?
I thought companies usually provide guidance for the next year (FY08) *after* releasing earnings for FY07.
2 — If you can provide feedback directly to the company management, here’s one. I came to learn about this company through OTCJournal. However, TTGL can get a lot more personal investors informed and excited about this stock if they present at reputed investor conferences (e.g. EquitiesMagazine conference, Roth conference, etc). Do you know if they are planning something along these lines in the future?
Thanks for all the impressive stock picks,
-Joe
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. Joe, in the case of TTGL, I am really starting to develop a good rapport with the management, and they seem willing to listen to exposure ideas. I will suggest they start getting out there more, and expand their exposure efforts. With regard to guidance, they simply felt, in light of the recent major changes in the company, that it made sense to give investors an idea of where they stood. I believe their year end was end of October, so next we will get audited financials.
I am wondering if in the earnings estimates is the settlement with AT & T. If it is, I believe earnings are estimated to be lower since the settlement is $7.2 Million (I believe after tax – NOL) and they are expecting about 15 to 17 Million in earnings.
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. Stan, I hardly think the AT&T settlement was the bulk of it. It is a nice one time event, but with the telecom division, the resource division, and the home products division, this company has tons more going than one $7 million event. It is going to deliver most of $1 billion in sales. That’s impressive for a $2 stock.
Any idea if ttgl is buying back more shares. Last time they reported they reached the million mark.
Editor: I don’t believe they are, but that would be worth checking on. It might not be a good idea as this stock already has a fairly small float. If they reduced it more, it could lead to problems when institutions start looking to participate.
I am VERY heavily invested in TTGL and I really appreciate all of the great “info” that you are giving all of us about TTGL. Thanks for doing such a great job and please keep ANY and ALL information about TTGL that you possibly can coming. T.I.A.
Editor: I know it’s a little boring right now, but the technical forces are building on this one, and someday it will start trading really well. I believe you will do well with it.
someday if pigs had wings they fly another good pick down hey what happen to TCGD they could go all the way to what nothing
Editor: Looking for something really major out of them. Stand by. Not a short term play unless it turns into one, but some exciting stuff in the works.
going down again today its fun to watch all your picks go down except for spkl I guess you got that wrong is that why your telling everyone to sell
Editor: All my picks are going down? Jeez, what about PNWIF which I found at $1.80- how about AAPL at $86 in March- or, have you forgotten that I first found TTGL a year ago at $.85? The market got absolutely hammered yesterday and the stock was down a few cents. Big deal. If you think that makes it a bad idea, sell it and get out. This is not for you.
re very heavily invested lost your shirt today Ive been watching this joural for a year now the only one that make money is the editor no comments today I guess you have your head in the sand
Editor: Go F yourself. If you didn’t buy AAPL at $85 in March-who’s fault is that?- How about PNWIF at $1.85 from a year ago- or TTGL at $.85 a year ago. And here’s the biggest- I told everyone in three different editions that SPKL was the buy of the year- you had two weeks to buy all you wanted at $.80 to $1- three weeks later it was $2, when I said to sell part or all. If you can’t act, stop whining. Use the unsubscribe link. This publication is not for you.
Hello
I made money in SPKL AND TTGL(which I still have) but wasnt able to take advantage as much in SPKL because my funds are tied up in PLHI and UCMT heavily as well as losses in NCNC and CPNE (which I still have).
I took some small loses in Traceguard and Enigma…but no big deal.
In my opinion, I think you over-pushed the possibilites of UCMT and PLHI in terms of dividend plays. This is where it hurts.
My opinion,
M.
Editor: I respect your opinion, and you’re probably right. Thank you for the feedback. Let’s see if we can get you more heavily weighted in the winners from here forward.
I’m don’t need to sell i buy putts against your picks works out real well down again today
Editor: Very funny- there’s lots of options trading on all these micros, so I’m sure you are loaded up.
good news letter
Editor: Thanks for feedback.
Hoping for good things here its a little slow
Editor: Just when you least expect it- patience is rewarded.
Seems your hate club is in full swing. Thanks for some really great picks. CPNE really put me on my feet. EFSF made me some good money too. I’m about to sell PNWIF(at 75% up) so I can get more EFSF .I’m loaded up with TTGL and the season looks good to me;so here is one happy costomer
Thanks again
Nigel
Editor: Nigel- one thought. I wouldn’t be in a big hurry to sell your PNWIF- I am a buyer right now, and I believe things are going to start getting interesting there.
I think I said this before so bear with me I’m new to this maybe 8 months been doing ok so far wwhat does todays news mean thanks
Editor: Seems like they have news everyday, so I’m not sure which one you are referring to. Likely the spin out of their PCB division, which has been their only money loser. They are merging it with another company, and spinning it out into a separate public company, and giving a share dividend to shareholders. Gives you another chance to make money.
I got in TTGL around 1.10, so no complaints from me…seems this company will be doing a lot more in the future.
Could you please explain what the latest news will mean for the company and investors.
Thanks
Editor: If you are talking about the PCB division spin out- here’s what is going to happen. They are going to merge it with another company and spin it out into a separate public company. If you are a shareholder, you will receive a tax free share dividend.
I really don’t understand the bashers on OTC boards. First, nobody is putting a gun to your head to buy any of the stocks recommended by OTC. OTC is providing us with detailed analysis of undervalued companies. You may invest in these companies based on further analysis of your own and your risk level. Besides, if you bought the majority of OTC recommended stocks at the entry price, sold at the SSL and take some profit off when they go up, you would have done well as I have.
I want to second Nigel in thanking the editor of OTC for all the good work you are doing.
Editor: Thanks very much for your comment. Greatly appreciated.
I,m not whining just tell me again how go this stock is not a year ago when you got it but two weeks ago when you told everyone to buy it
Editor: If your window in time to measure performance is 2 weeks, you are going to spend a lot of time being disappointed. Sometimes it just takes longer, and sometimes it doesn’t happen. This is a deja vu comment from last spring when the stock could not get out of its own way, going back and forth from $14.0 to $1 for 4 months. Look where we ended up.
are we trading or investing two weeks is penlty of time for a $2 stock to move this one made a .25 the wrong way what can I say bad pick were trading right
Editor: In case you haven’t noticed, the COMP and the DOW have been absolutely clobbered this week- stocks are dropping like rocks off a cliff everywhere. If you’re not willing to wait out this correction, sell this stock and get out. Not for you. I don’t know when it will trade better. I just know these are the same complaints I heard six months ago when the stock was trading back and forth between $1 and $1.30. Also- if you take a hard look at the stock, you will note it has sold off on very light volume. That’s meaningful if you understand markets.
its easy tell people to sell if you don ‘t like when you are being paid to sell the stock and I’m not just talking about this one all your picks go up when you say its a good deal then you sell make your money on free shares and everyone else take the hit yes I know its all in the disclaimer
Editor: People have made serious money following my advice this year. Clearly, you are too focused on how we make a living to look at the facts. This publication is not for you. Use the unsubscribe link, and get out. There are plenty of other sources of ideas out there. I’m sure you’ll find one that works for you. It is not the OTC Journal.
Is this new raise of $5 million in capital a good thing for exsisting shareholders or just more dilution. Also the purchase of the company thats being merged with the PCB division seemed quite complicated, so I couldn’t figure out the positives or negatives. What is your take.
Editor: Good question. I believe the raise is good, because it is not going to the parent company- TTGL. It is going to the new pub co when it is spun out. It will create dillution there. If you are a shareholder, you will get a stock dividend in the new pub co when it completes its Form 10, and TTGL will not be saddled with this losing division anymore. The other three all make money. It’s a good move, but I do need to get more detail and do an update on this one.
Hi,i’ve been a holder of TTLG since April at a price of about $1.20 a share.I love this stock but I have just one problem with it.Back several years ago before they purchased Oblio the company was so battered by all of the toxic financing they did.I am worried that they are taking on to much debt again.With all the acquisitions of late would you happen to know what their debt is as of today.
Editor: I believe the lack of this information is one of the issues holding the stock back. This company has a rather unusual fiscal year end- the end of August. This means audited financials are due out by the end of November. However, all the transactions took place in September, so we really won’t get a good look at the balance sheet until the publish Q1 numbers- mid January. There is one big difference- they have taken on debt to do the acquisitions, but they used the money to buy profitable companies. They only took on simple debt- there is no conversion feature into any sort of dilution to the common stock. It will be far less toxic than their past indiscretions into toxic debt, which is pretty much nearly gone now. Good questions. Congratulations on hanging in there. Could be a huge win for you.
What do you think about the two news today. Equity raise @ 2 USD without warrants sounds absolutely great. But what about the minority investment in HOMS?
Editor: Lots to update on this company. Will do some kind of comprehensive update next week. No way to interpret the $5 million investment as a negative.
ok maybe theotc is not for me but you have to amitt ttgl tcgd andengm have bind a bust look a the 3Q number engm 5they doubt there ability to continue so what happen in a month since you where so gun hoe you told people to buy and never did a follow up what up with that
Editor: I can read TTGL- I guess TCGD is on your list here. Not sure what you are talking about with any thing else. If you’re pointing out the neither TTGL or TCGD have done much in a couple of months, you are absolutely right. So? Neither one are doing good or badly to either the downside or upside right now. If you look back at TTGL from when I first covered it in October of ’06 at $.85, there were months when the stock didn’t go anywhere. Yet, here we are, just over a year later- two and a half times your money. If you don’t recognize that these stocks don’t always go up everyday, and sometimes there are long periods of sideways trading, this isn’t going to be the market for you. If you’re only looking for short term trades, just sell them if they don’t trade well in the short term. If you like the idea and/or the story, hang in there for a while and use the SSLs.
Both TTGL and PNWIF are potential nasdaq listers…Do you still see TTGL as the best buy with least risk and most upside or has PNWIF now taken over that with their costco agreement…I own both and am hoping for big returns in the next year
Editor: I believe TTGL is the less risky of the two as the fundamentals suggest the stock is absurdly undervalued. They could deliver $1 billion in sales in fiscal ’08, so how big is the downside. I believe PNWIF will get a NASDAQ listing before TTGL, which is a big plus. I also believe PNWIF is a little riskier as they sold $15 million worth of stock at $3.40, and it is a much smaller company. However, I also believe both have tremendous upside for here.
I was wondering if you had anticipated a reverse stock split? Do you think this is a good way to get the nasdaq listing?
Editor: Could be- don’t think it will happen in this case- not enough shares I&O.
comments on reverse stock split?
Editor: I don’t believe it will happen in this case, but you never know for sure.
It seems to me that Titan Global is in a downward trend. The highs are getting lower and the lows are getting lower.Do you agree?
Editor: Of course I agree- the price has gone lower. However, like a lot of these stocks against a backdrop of the subprime meltdown, TTGL has been selling off on very low volume, which indicates to me it could be a quick turnaround candidate.
so what do you say about the RS
Editor: Where’s everybody getting the idea the company could do a reverse split? I haven’t read that anywhere, or heard that anywhere.
Titan sure took a hit when their year end numbers came out. Is this a knee jerk reaction or should we be thinking about stocking up?
Regis
Editor: Seems to me it’s a buying opportunity. All the non cash writedowns, combined with knowing that the Appalachian and the US Products acquisitions occurred in September- after the year end- should equal a heck of a good buying opportunity in my view.
http://www.sec.gov/Archives/edgar/data/770471/000114420407064804/v090837_pre14c.htm
Editor: Getting caught up with the situation now. The company actually made over $9 million last year. What a buy this stock is in my view.
I had asked the question about the reverse stock split because I read a news report that the board had approved a possible stock split of anywhere between 1-1 1/2 or 1-3. Sorry I didn’t specify that earlier. Thanks for your good work! I’m still ahead despite todays earnings report.
Editor: Now that I’ve had a couple of days to digest what’s going on, I realize the company actually made over $9 million in fiscal ’07- strong buy on a fundamental basis.
ATTN: TTGL ON SALE!
Editor: Now that I’ve had the time to get the facts, I agree. Awesome buying opportunity. The way they book the costs, it looks as if the company has lost a substantial amount of money. If fact, they made over $9 million in positive cash flow. The market will catch on someday.
I have one concern maybe you can correct me on. Prior to any of their purchases this year Titan Globals earnings prediction was 145 million. They did not even come close. I am enclined to think this is why the stock tanked. You always say you like a company that comes through on their predictions, does that apply here? Your thoughts!
Editor: Interesting- I asked that very question on the conference call today. Actually, they adjusted the number down to $125 back in June- then they delivered $111. However, there is a reasonable explanation for the difference between $125 and $111- deferred revenues. Since they have their own switch, they cannot book revenues for phone cards they have already sold until the cards are actually used- therefore, they have presold the $125 million, but couldn’t book the revs. More importantly, they actually had positive cash flow of over $9 million- someday Wall Street will get what’s going on here.
another good job tell me again that its are time of the year
Editor: Nice grammar. Is there a question?
Can you give more detail on the previously issued warrants that caused the 14 million non cash charge? I am wondering at what pace these warrants are getting converted, how much more can this effect future earnings, ect.
Thanks in advance, and great job.
Editor: I can’t do that personally. However, I can ask management to provide the information and see what happens. If I get it, I will publish it.
Hi. Just wondering if you have any thoughts about the action recently. What little news that comes out (projected income and earnings) seems really great but investors seem to be giving up. thanks in advance.
Editor: Here’s my view- these low volume sell downs in tough markets usually end up being great buying opportunities in retrospect, as long as the company is doing well. I have little doubt TTGL is worth far more than where it is trading. However, you are seeing some year end tax selling. At this point, if you are still in the stock, you have chosen to stick it out below my SSL, so you should be thinking long term. This company, which actually made about $9 million in the last fiscal year, has $700 million in revs, and is only trading at a market value of about $75 million, should do well at some point in the future. There could be further year end slippage, so if this is troubling to you, you should sell the stock.
Sometimes people need to make sure they understand the difference between trading and investing. In my opinion, this is the best place to load up on TTGL for long term wealth accumulation. This is also why you should accumulate good companies over time.
Editor: I don’t believe people understand that this company is delivering over $700 million in annual revs and making money. That’s a darn big number. It’s huge for a microcap. That having been said, we are in a tough market right now with some tax selling, which is a great time to accumulate good companies. You are spot on.
Man, we are on a steady downward trend. Any additional thoughts or info much appreciated. Is there a reasonable buy point in here or is the environment so bad that we should keep our powder dry?
BD
Editor: Yes, we are on a downtrend, but on very low volume. And yes, I believe these low volume sell downs should be bought towards the end of December for a January rally. More low volume tax selling in this schyzoid market should provide some great opportunities.
I just finished listening to the conference call for TTGL again. Unbelievable the things they are accomplishing. New card services division (prepaid Master Card), M&A division, major insider ownership, reduced fully diluted share count by 3million, repurchased 25% of authorized buy back at avg price of $1.35, major acquision of (approx 480million) with very little dilution, strong equity partners, good relationship with Greystone Credit, added great managment talent, and did you notice the 1st question came from someone with Citigroup? Also a potential NASDAQ listing. These are just some of the take aways I had from the call, and are not sure they are all accurate, but this sure looks like a perfect storm brewing that should really propell this stock very much higher moving into 2008. Just my thoughts. Thanks for a great newsletter.
Editor: TTGL is a source of major frustration right now as clearly the stock is not trading very efficiently relative to company achievement. Also, the damn warrants from past financings just kill their earnings statements- as the stock goes up, their paper losses go up, which is absurd. This company needs to be “discovered” by institutional investors due to the pure size of the company. The company really needs to get out and get its story in front of fund managers.
what do you think the bottom will be on this stock i sold at 1.90 because it wasn’t doing anything and I was thinking of getting back in but ther dosen’t seem to be a bottom. The company sounds good just like efsf but nothing happans Thanks fo listening
Editor: Just like EFSF? Hardly. I don’t know how you can compare a company doing $1 million a year against a company doing $700 million a year. The stocks are comparable since they are both trading like s**t right now. However, in the microcap world, I would characterize EFSF as a total crap shoot (and, I don’t mind a crap shoot), and TTGL as a value investment at this price. Far less risky than EFSF. I don’t know where the bottom will be on TTGL, but it’s probably more about getting through this year. This one could be a great opportunity for a January effect bounce.
I think the ttgl was making open market purchases at around this price earlier in the year. With major inside ownership, I would think they will have to step in here and defend the price. Also, what do you think of the chance these damn warrant liabilities can be put on the balance sheet of the spin off of the electronics division. Thanks again for great newsletter.
Editor: You read my mind. I posted a new blog with some current thoughts before I got to your comment. Please check out the current posting.
Little confusion over the recent sell off with this one . I have E-mailed the company and asked about when we will have an indication of first quarter sales as I believe that Q ended Nov. 30th , they have not responded and I was led to believe that the investor relations was on top of it but they have not been with me so far . Do you think that maybe first quarter results may not be as good as promised and hence the sell off ? In my opinion the first quarter should be grossing about 120 million and maybe 6c per share net . What are your estimations based on what we have been told.
Thanks
Andy
Editor: Andy, I have no reason to disbelieve their projections. With the stock down like this, it should add a big non cash and meaningless gain back to their income statement. Since you posted this question, I have published a new BLOG with some current thoughts. Have a read and let me know if you have any other questions. I will forward on your comment on the non-responsiveness.
Comment by andrew: Hey andrew sorry I didnt read your comment earlier…. that whole conference call was fake…. at the time the company did not even have any cash to pay their employees….. the controller had to produce fake invoices to borrow money and get the payrole going….. The company was also trying to figure out how to fool the investors by playing with their liabiities on the communications side. They have cooked up some numbers man… They were even taking lessons at the time from their Bankruptcy guru whom they hired to dissolve the company and shuffle cash from the market…. I suppose the deal fell apart and therefore they brought the RICO charges against those guys…..HUH
Editor: This is becoming the National Enquirer. Lots of fun. I can’t comment on any of these allegations, other than to say I haven’t heard any of this and it all seems rather unlikely, but you never know.