Still a potential growth story based on a few recently realized developments, Teletouch Communications (TLLE) continues to trade under the radar while solidifying its redirected business plan that heavily emphasizes distribution and hardware sales, mainly through the company's primary subsidiary.
The refocused plan was met with early success.
Multiple new distribution agreements were announced last month, a key indication that Teletouch is making headway in securing a dominating presence in the distribution channels of several well-known brands, such as AT&T (T). Also noteworthy to the Teletouch bottom line was settled litigation with T that brought in over $18 million dollars, not a small sum for a still-growing company. The litigation related to certain hardware that the telecom giant was not allowing Teletouch to sell through its channels, but as a result of the settlement the two entities agreed upon another multi-year contract that - since they also agreed to forgo any further litigation - should keep the marriage well intact.
Most significantly, the large settlement sum from T eases the monetary burden for Teletouch as it shifts its core business from providing wireless services to the more profitable one of hardware sales and distribution.
Volume, although having picked up during last month's news flow, has again tailed off, possibly providing patient investors a better opportunity to jump in by naming their price with limit orders. High volume shot shares past the sixty cent mark earlier in the year, a good indication of where this stock could again go, should volume and investor interest start to pick up.
With the amount of new deals announced over the past couple of months, Teletouch will be a stock to watch during the coming quarters as a potential growth story.
Worth keeping an eye on as TLLE is currently slipping beneath the radar trajectory.
Disclosure: No position.
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