Why GeckoSystems (OTC:GCKO) may be ready to fly

Sunday December 6, 2009 6:14 AM PST

By M.E. Garza

From Peter Depalma at BioMedReports:

We told our readers and subscribers to put GeckoSystems Intl. Corp. (OTC:GCKO) on their watch list near the close of the day on Friday.

We were alerted as the stock rose over 600% on "no news," in the closing minutes on Friday, but we have a feeling that whoever was buying big million share blocks shortly after the run started must have known something was up with this company who only earlier in the week announced that during their real world evaluation trials for their fully autonomous personal companion home care robot, the CareBot(TM), they have learned some surprising insights.

GeckoSystems is a dynamic leader in the emerging Mobile Service Robot (MSR) industry revolutionizing their development and usage with "Mobile Robot Solutions for Safety, Security and Service(TM).

Interestingly, this news items came across the press wires on Saturday from the Associated Press less than 24 hours after the stock rose to near $.05 from the one penny level? Did someone know this topic was about to go mainstream?

http://www.usnews.com/science/articles/2009/12/05/scientists-lawyers-mull-effects-of-home-robots.html

Could this be the start of a parabolic run for this small but innovative robotics company that has been mentioned right alongside other big players like Cisco Systems, Incorporated (NASDAQ: CSCO), Irobot Corporation (NASDAQ: IRBT) and Intel Corporation (NASDAQ: INTC) in recent articles, like this one from Forbes Magazine:

http://www.forbes.com/2009/09/17/robots-health-care-technology-breakthroughs-telehealth.html

In the Forbes Article, Microsoft Corporation's (NASDAQ: MSFT) robotics group director, Tandy Trowerthe, says the next step in telepresence health care technologies will put a personal care robot in your home. The article points out that this is exactly what GeckoSystems of Atlanta, Georgia, hopes to do in becoming the first U.S.-based company to deliver eldercare robots. It plans to begin selling its robots early next year, after a series of public evaluation trials.

GeckoSystems' (OTC:GCKO) CareBots include two engines: a self-navigating mobile platform that uses environmental cues and GeckoChat, a language recognition and processing engine.

"The CareBot will follow Grandma like a pet dog and tell her jokes, talk about her favorite TV shows and read her favorite bible verses," promises creator Matin Spencer. Over the past 10 years, GeckoSystems has spent $6 million developing its mobile CareBots, which Spencer expects will sell for $10,000 to $15,000 apiece. Spencer figures that price will look like a bargain to patients who are considering spending more than $20,000 a year for a spot in an assisted living program.

"Imagine a robot in your elderly parents' home," Helen Grenier, co-founder of iRobot and CEO of DroidWorks writes, "allowing you to virtually visit by means of video, or one that can deliver a drink and important medication at the right time, letting the aged remain independent longer … [This is] absolutely not science fiction. … All it would take is recognizing these as critical national goals--before other countries take the lead."

Using U.S. Census Bureau data and various predictive statistical analyses, GeckoSystems projects the available consumer market size in dollars for cost effective, utilitarian, multitasking eldercare personal robots in 2010 to be $74.0B, in 2011 to be $77B, in 2012 to be $80B, in 2013 to be $83.3B, and in 2014 to be $86.6B.

With market penetrations of 0.03% in 2010, 0.06% in 2011, 0.22% in 2012, 0.53% in 2013, and 0.81% in 2014, we will anticipate CareBot sales, from this consumer market segment, only, of $22.0M, $44.0M, $176M, $440.2M, and $704.3M, respectively. The Company expects these sales despite -- and perhaps because of -- the present recession due to pent up demand for significant cost reduction in eldercare expenses.

The foregoing forecasts do not include sales in non-metropolitan areas; elderly couples over 65 (only elderly living alone are in these forecasts); those chronically ill -- regardless of age -- or elderly living with their adult children.

Interesting also about the company is the fact that the internet blogosphere had started to buzz about the company and it's plans in late November:

http://trueslant.com/courtneymyers/2009/11/26/this-thanksgiving-ask-grandma-if-she-wants-a-robot/

So where does this go from here? Up according to one popular stock chart analyst. He sees resistance at $.20, $.52 and $.70 and he may be right. There are very few shares in the company's float and no visible overhang. Recenlty, shares of VKNG

See his chart here:

http://stockcharts.com/c-sc/sc?s=GCKO&p=D&yr=0&mn=11&dy=0&i=p92703356405&a=185087509&r=2959

Another rumor centers around a possible partnership agreement between Gecko and Sparton Corporation (NYSE:SPA) which trades at over $4 per share and provides design and electronic manufacturing services, which include a range of engineering, pre-manufacturing and post-manufacturing services on a contract basis.The company was not named, but strongly hinted about in a recently issued report by the company.

Officials at the company were reached for comment during the weekend, but did not yet return messages.

As soon as they do, we will follow up this report.