Imagine for a moment that it’s June 15, 2017.
You are looking for new investment opportunities. Then you stumble upon Tempus Applied Solutions Holdings, Inc. (TMPS) and see that it’s on fire. It’s up 83%!
Immediately you begin performing some preliminary due diligence – without the help of any message boards where the noise can seem unbearable at times. Instead you rely on good old-fashioned gumshoeing – you know, good ol’ Google.
You find that TMPS (formerly Chart Acquisition-CACG) was delisted from the NASDAQ in 2015 …. hum that’s curious, you think. After some more research you find they were delisted simply because they did not meet the minimum number of shareholders requirement. But it immediately relisted on the OTC QB at around $9 per share.
Then a problematic period for the share price started occurring in April 2015. The investor pool CACG once enjoyed dried up because many of the former NASDAQ traders who were in CACG at the time didn’t make the jump to the OTC. Volume drops off and the share price begins a slow steady decline due to short selling and a lack of investor awareness to this new OTC ticker.
Fast forward to August 2015 and the Chart Acquisition/Tempus business combination that had been in the works since July 2014 is now complete, creating a new holding company called Tempus Applied Solutions Holdings, Inc. On August 4, 2015 the stock starts trading under new ticker symbols “TMPS” and “TMPSW.”
Then some very significant material events begin to occur in 2016 and 2017.
Throughout 2016 Tempus announces it has been awarded several major contracts worth a total of $100 million dollars to be spread out over the next four years:
– $24.4 Million Dollar Contract to Provide USNORTHCOM With ISR Aerial Platform Support
– $45 Million Dollar Contract with U.S. Navy to provide airborne and land-based training support to various U.S. Navy combat units
– $25 Million Dollar US Navy Electronic Warfare Contract
– $5 Million Dollar Contract with NASA’s Jet Propulsion Laboratory
– $5 Million Dollar U.S. Africa Command Contract
From 2016 through June 2017, the share price continued its decline. It sinks all the way down to .03. Many days saw zero trading volume. In fact, many weeks saw zero volume.
On May 16, 2017 a SC 13D/A drops announcing Swedish billionaire, Johan Eliasch, had taken control of the company by settling a lawsuit and acquiring 79,532,944 shares. Some, come to see this as a hostile takeover of Tempus by the Swedish Billionaire. Indicating that he has higher aspirations for the fledgling provider to the Department of Defense (DoD), U.S. intelligence agencies, foreign governments, heads of state and others worldwide.
A month later on June 15, 2017 an 8-K drops announcing M&A Specialist Johan Aksel Bergendorff has been named the Company’s new Chief Financial Officer. This appointment leads speculation that Tempus is being reorganized for a possible merger with Tempus Jets, a subsidiary of Tempus that operates in the commercial space. Others believe the company is being shopped around as a possible acquisition target.
Astonishingly, the 2016 contracts, Johan Eliasch’s takeover and the appointment of the new CFO went completely unnoticed until word got out to the investing community late in the day on June 15. Then TMPS closed at $0.039, a rise of +83%. By June 26th the share price had continued its meteoric rise to $0.71. The next day it shot up again, this time to $1.039 (a staggering rise of 3363.33% from its June lows).
Since then the share price has overcorrected with a drop of 71% to .30. The Market Cap sits at $5.1M, which is hugely undervalued given it represents just a little over last quarter’s revenues. Let me state this again. The current Market Cap of $5.1M is just a little over last quarter’s revenues.
So, as of August 31, 2017 here is where we find ourselves with $TMPS
– O/S is tiny at 17M shares.
– Float is amongst the lowest on the OTC at about 11M.
– Market Cap is at least 8X undervalued at $5.1M.
– Annual revenues continue at a rate of around $16M, with signed contracts for the next four years.
– Zero toxic debt.
– OTC QB Fully audited SEC reporting.
– Financial institutions are currently invested.
– IPO Warrants with strike prices in the $4.80 to $11.50 range which have yet to convert.
– The CEO, Steve Terry is actively and aggressively building shareholder value.
– The majority shareholder Billionaire Johan Eliasch is onboard and supporting Mr. Terry every step of the way with his International military connections.
– Minimal warrant shares exercised by Cohen are left to convert.
– Earlier short selling has ended.
– New contracts are aggressively being sought out.
– Capital Equipment (including Six Royal Airforce L-1011 jets) is being acquired to support these bids.
In conclusion, it’s not often, if ever, that I have seen a company like Tempus Applied Solutions, Inc. on the OTC. Great things are in store for investors of Tempus. All you’ll need is a little patience to see what the Swedish billionaire owner can bring to the table with his vast resources and International contacts.