Well, the delinquent numbers have finally come out, and there are a couple of nasty surprises in the disclosure. I will need some time to digest the whole thing, but here’s my initial reaction.

The company delivered $122 million in revs and reported a loss of $24.4 million. However, they took non cash write downs totalling $25.5 million in their Communications and Global Brands Divisions- meaning, their cash flow really wasn’t too bad.

Here’s the big negatives in my mind. First of all, TTGL clearly has problems in the Oblio Telecom division, which was the acquisition and turn around story that got the company headed in the right direction in the first place. In today’s press release, they admit their internal switching facility, which was supposed to decrease costs and increase margins, has been a complete failure. Hence, the reports of card failures in December and contentious relationships with distributors. They claim they will evolve back to a straight marketing company without the hardware or network, which doesn’t give investor a warm and fuzzy feeling about the management team.

Secondly- USA Detergents seems to be problematic as well. Apparently, the bought a very distressed company, and have decided the proper direction to go would be to shut down the operations and outsource the manufacturing. Therefore, all they bought was the label itself, and this division is contributing nothing but losses.

The Energy division is chugging along adequately, albeit no barn burner in the profit department- perhaps there is some substantial upside here.

I’m not surprised the stock is not selling off today. They will probably lose the dreaded “E” on the symbol tomorrow, and move back to the normal listing.

I’m also not surprised they needed the extension to get these financials filed- I’m sure there was major debate on how to book the writedowns for the various divisions. It looks to me like the accountants chose the most aggressive direction on writing down the value of the assets.

So- where to from here? I’m pretty sure all this bad news is already priced into the stock. A couple things need to happen- first and foremost- the management needs to hold an open ended conference call with a complete question and answer period open to anybody and talk about all the issues facing the company.

Simply looking at the hard numbers, the company is trading today at about a $45 million market value on $122 million in revs (nearly $1/2 billion annually), and they didn’t lose much hard cash. The energy division is probably worth more than where the stock is trading on a stand alone basis.

However, they recently bought another division- the shoe manufacturer. If the integration of this division go as smoothly as the past ones have gone, one can expect the roller coaster ride to continue.

I suspect there is some upside in the stock from here. Something good is bound to start to come out and turn the tide. However, this is no Berkshire Hathaway mini clone. Right now, its a stumbling, bumbling, de “worsified” company that needs to get back on track. Their turn around initiatives don’t seem to suggest the management is very skilled.

Bottom line- I wouldn’t be a seller right now- it’s all priced in already. On a rebound we can start looking at options and consider the future. By then, we will have more information.

In case you haven’t figured it out, Titan Global no longer trades under the symbol “TTGL”- it now trades under the symbol “TTGLE”, which signifies the company has filed to file its quarterly financial results in a timely manner, and has had to file for a formal extension.

TTGL, despite boasting it will deliver $735 million and $15 million in net profits in fiscal ’08, is behaving as if there is nothing but problems at the Berskshire Hathaway wanna be.

The OTC Journal family has delivered information suggesting their Oblio Telecom division has had problems delivering it’s prepaid minutes to card holders, and there are serious undisclosed problems therein.

In addition, others have suggested the USA Detergent division is closed down for some sort of restructuring- details of which have also not been disclosed.

Here’s my message to management: Disclosure, Disclosure, Disclosure, and for good measure- Disclosure. Perhaps there are some short term challenges- perhaps not.

Either way, the “Not Knowing What’s Going On” is far more damaging to the stock price than disclosing exactly what is going on and how the company is choosing to deal with it.

As if this is not bad enough, now the company is unable to file its Q1 financial statement on time, and has received the dreaded “E” on its symbol- not such a bad thing, but clearly not a good thing.

Next week the company will have to get its quarterly numbers filed and get some disclosure out. I’m pretty sure the market has priced in a worst case scenario, so there’s probably a lot of upside here, but I want to wait for the numbers and associated conference call before forming any opinion. They had better do an open forum conference call- time to start telling investors what the hell is going on.

Hopefully, not another CPNE, but a hiccup on the road to success. We’ll see. It had better be next week.

If TTGL were the DOW, it would be trading at about the 7500 level, and the financial world as we know it would have come to an end. It would be 1929 all over again.

I have seen many stocks trade down to horrifically low levels in tough markets. Sometimes it’s a great buying opportunity. Sometimes it’s a precursor to a problem at the company.

I don’t know which it is in this case, and it’s too early to call. Drawing back on experience- there were some great buying opportunities in market driven pullbacks last August as micros and many large caps provided great entry levels.

Then, there’s the experience on the other side. CPNE comes to mind. That stock was $3 in 2007 when it started to free fall in February. It wasn’t until June when the company really disclosed the dramatic nature of the downturn in their business. The stock is now at $.30, but I didn’t suggest getting out until the stock was at $.70. I was late, and made the mistake of waiting for the disclosure rather than taking my cue from the market.

This bloodbath in TTGL is particularly distressing due to the robust nature of their financial results. After all, in fiscal ’07, they did deliver $9 million in positive cash flow.

Here are my thoughts for today. Q1 numbers are due out by Jan 15. That’s only a week away. No doubt, there will be a follow up conference call.

This will be the first quarter that includes results from Appalachian Oil and US Detergent, which should add quite dramatically to the top line. I don’t know about the bottom line or the cash flow.

If the fundamentals are still strong, it’s time to batten down the hatches and just hang on through these rough waters.

If there is a crack of some sort which suggests there is trouble ahead, let’s let it be someone else’s problem, get out of this idea, and move on on some sort of bounce back. There will be better ideas ahead.

I hate to walk away from a beautiful buying opportunity, but sometimes you just have to cut out the cancer and move on. In this case and in this market, I would rather give up a $.30 move to the upside rather than put good money after bad.

If you are underwater on this one, remember my published SSL was $1.73, so by definition you have decided to become a long term investor. If the numbers are good, you should be looking to add to your position and waiting out the market.

Here’s the chart, and as you can see, this stock has eclipsed all levels of support, and basically delivered a round trip to my original entry level of $.85 back in October of ’06.

The company has offered up no explanation for this butchering. It would help if we knew some fund exercised a bunch of warrants and was hammering the stock. Then, I could get behind it.

Bottom line: Hold your nose, hang on for now, and wait for the next earnings release. Perhaps we will be passing up a huge opportunity to jump on a really cheap stock, but I don’t want to put good money after bad until all the facts come out. I don’t want us to go through another CPNE type event.

Comments and questions are welcome.