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Great Post Fly! People aren't used to a real company and an upstanding CEO on this exchange. It's normal for them to think this has run and it can't run too much longer. Throw out all of the usual game strategy here...KMAG is only getting to its fair market value, and that is at least $.10 as of now. As the company reports bigger and better numbers, KMAG's value will follow. Biggest no brainer on Ihub by far!
This year I was in a few good runs:
CBI* - Ran from .02 to .24 in 2 months.
ATR* - Ran from .008 to .3599 in 3 months
ICP* - Ran from .0028 to .0585 in 1 month.
KMAG - Running from .0038 to ???
KMAG has everything the above stocks didn't!
Sales
Reputable CEO
Aggressive Growth
Share Buyback
NOBO List
Solid Fundamentals with NO DEBT!
No Dilution
Business plan to uplist
If those stocks can run to those prices on little/no revenues, mass speculation, debt, and dilution...
Where do you think KMAG is headed to?
Bulls are in full stampede mode...KMAG deserves it...we are on our way to double digits sooner than most think!
KMAG is worth .10 Per Share Minimum!
Look at these numbers, here's what exponential growth looks like:
2011 Fiscal Year Total: $858,802
2012 Q1(Jan-March) $866,176 +.086% Increase
2012 Month of May Alone: $935,000 +7.95% Increase
2012 Month of June Alone: $1,105,480 +18.23% Increase
2012 Month of July Alone: $1,310,458 +18.54% Increase
For the last two months alone, the month to month sale increases have been over 18%! Now, let's crunch some mathematical equations to estimate upcoming month to month sales growth for the course of the next 12 months; we will do this by calculating growth at several different percentage increase rates. I will include numbers based on a conservative, average, and continued strong sales increases below. For the sake of this study, the conservative rate will be 1/3 of the current growth rate, the average will be 1/2, and the aggressive will be a nice round number at 15% (Which is still lower than the current month to month growth rate). Here is the breakdown:
Current Month to Month Sales Growth Rate: 18%
Conservative Estimates at 1/3 of Current Rate: 6%
Average Estimate at 1/2 of Current Rate: 9%
Aggressive Estimate at Lower than Current Rate: 15%
6% Growth
July: $1,310,458
August: $1,389,085
September: $1,472,430
October: $1,560,775
November: $1,654,421
December: $1,753,686
January: $1,858,907
February: $1,970,441
March: $2,088,667
April: $2,213,987
May: $2,346,826
June: $2,487,635
July: $2,636,893
Total: $24,744,211
Profit: $4,948,842 (20% of Sales)
Net Income: $2,474,421 (10% of Sales)
EPS: .004 (Net Income/OS-2,474,421/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .0923
Current PPS: .0134
Expected PPS growth: 588.81%
9% Growth
July: $1,310,458
August: $1,428,399
September: $1,556,954
October: $1,697,079
November: $1,849,816
December: $2,016,299
January: $2,197,765
February: $2,395,563
March: $2,611,163
April: $2,846,167
May: $3,102,322
June: $3,381,530
July: $3,685,867
Total: $30,079,382
Profit: $6,015,876 (20% of Sales)
Net Income: $3,007,938 (10% of Sales)
EPS: .0049 (Net Income/OS-3,007,938/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .1122
Current PPS: .0134
Expected PPS growth: 737.31%
15% Growth
July: $1,310,458
August: $1,507,026
September: $1,733,079
October: $1,993,040
November: $2,291,996
December: $2,635,795
January: $3,031,164
February: $3,485,838
March: $4,008,713
April: $4,610,019
May: $5,301,521
June: $6,096,749
July: $7,011,261
Total: $45,016,659
Profit: $9,003,331 (20% of Sales)
Net Income: $4,501,665 (10% of Sales)
EPS: .0074 (Net Income/OS-4,501,665/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .1680
Current PPS: .0134
Expected PPS growth: 1,153.73%
As we can see above, KMAG is currently on course to be valued between .09 and .17 cents based on conservative and aggressive estimates. The median PPS estimate of all three outlooks is currently at .1242. Keep in mind these figures are based solely on fundamentals. CEO share buyback, NOBO list, announcement of major customer(s), stock exchange uplisting, and growing investor sentiment has not been calculated into this future outlook.
Based on all of the figures above, combined with the upcoming company announcements and events, I estimate a realistic PPS at a minimum range of .15-.25 per share within 3-6 months. The market is usually behind when it comes to aggressively growing companies; as more Investors are made aware of the true value of this company, momentum will build and help the market reflects its true value.
References:
KMAG Announces July 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53790113
KMAG Announces June 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53545210
KMAG Provides Company Update and Shows Significant Financial Progress
http://ih.advfn.com/p.php?pid=nmona&article=52946636
KMAG 2012 Q1 Report
http://www.otcmarkets.com/financialReportViewer?symbol=KMAG&id=84177
KMAG Company Overview
http://www.otcmarkets.com/stock/KMAG/company-info
IKE you're a hoot lol, good luck this week...may it be profitable partner.
Thanks, good luck to you as well. I think you might just get your double or more next week. This is a great short term and a phenomenal long term play!
.20
After my DD I anticipated this would get there in 12-18 months based on fundamentals and everything else the CEO is doing to bring back value to the company. So far, he has been spot on and the numbers are above my expectations. Now I've got some number crunching to do, this maybe worth more....especially after an uplisting.
Man I'm confused now...when I initially bought in (after rigorous DD that is) I immediately put in a GTC sell order at .20. I think I may be short changing myself now...ahhhh, life is tough!
Great post, thank you for your input. I don't mind the few bashers here and there, they're completely baseless here and are usually the sign of last struggles before the next breakout.
Thank you and good luck to you as well.
You are thinking like a sole opportunistic investor, he is thinking like a CEO that values his company! He is obviously more interested in growing his company as he had intended when he first started it...before health problems threw a road block his way. Your way of thinking is extremely flawed and begs a simple question, "Why does any CEO buy mass amounts of their own Companies stock?" Don't they get free options/shares for being the head of the company? Why would they later on keep buying and filing form 4's?
In the end, you and I wouldn't do that because we didn't start the company with any sort of vision. We are investors looking for the most valuable investment option. KMAG's CEO is buying back the shares to bring that value to his Company...pretty simple if you think about it.
Either way, it is far from hogwash, it's actually a firm sign of a man who believes in his company and is working to get it where it deserves. Inevitably, it will get there, ie; higher exchange/higher PPS/higher value = overall a more successful company.
"To me KMAG has more qualities of a Nasdaq stock than an OTC."
That about sums it up for me as well. Those of us that have traded on the bigger boards will notice many similarities with KMAG and the smaller growth companies on Nasdaq. The difference is, KMAG is growing at double digit rates!
I can't believe we haven't seen more of the guys from the ATrain here. Those were fun times but I'm ready for the real party. If ATrain was Reno then KMAG is going to be Vegas Baby!
Thanks Master, and great job on the board...a well deserved Mod spot here for you. I don't have PM, but I do appreciate the encouraging words
Lol Thank you and consider a board mark for you from me as well. Great to have a board with sound investors on IHub for a change. I think I will unpack and settle here for a while
This is what I was talking about when I mentioned 'Thinking Outside The Box' in an earlier post. So many people in the OTC markets are used to majority of the stocks they are involved in plummeting, thus causing them to get in and get out fast. This is a good strategy and I've used it myself on P&D's and stocks running on momentum/volume.
However, I am also a big board trader and actually did all my novice trading on those boards. Once, I figured out how this whole thing worked, ie; fundamental, technical, news based trading...I used some of my funds to invest in the riskier markets for aggressive growth. I've gotta say, I have done well...In fact, if I didn't adhere to the OTC psyche of trading I would've turned my initial 10K investment from a year ago to over 200K. I was invested in the right opportunities at the right time. But against my better judgement and diligent stock choices, I chose to get out while I was ahead on most of those plays. I made great profits, but left much on the table.
A few times a year some very good plays come to light on these exchanges...and even more rare are these kinds of Companies that are worthy of 'Investing', not just 'Playing'.
KMAG is the second one behind ICP* that I've found this year. But this has that beat when considering the fundamentals; we are talking about a Company trading on the OTC making over a million dollars in revenue every month! We are talking about a company with no debt! We are talking phenomenal growth!
Time will show the lucky few that will stick through the ups and downs that Patience and Due Diligence does pay off. Break the normal way of thinking with this one, and you shall expect the extraordinary returns.
KMAG is one of those rare gems that is truly worth Investing in.
I bought a lot in the .0038 range...and that's because I had the foresight to do my research when you were out looking for pump and dumps. I'm sure of this because your trading mentality is transparent. I bought 300k more at .0124, and .0143. There is your challenge buddy.
Also, I could care less what group is here and gone, who is posting, etc...I care about the reason I am buying these shares. Do some reading that people like me and other valuable contributors have made on this board, and you may see why you're not making the gains that most of us are with this company. Better yet, stop shorting and committing financial suicide, invest and hold until 2013...
Then come back and thank me for this message!
Wow very impressive News! The people talking about the news being priced in do not have a clue as to how stocks are valued...if we were at .05 already I'd say they may have a point. I strongly believe that we will be in the nickel range within a month with these kinds of revenues.
Jeff has also stated he expects continued exponential growth. This is the part that needs special attention! I will compile a new study on the true market valuation based on the updated numbers and estimated growth this weekend. KMAG continues adding value to its company operations, stakeholders, investors, and the RFID sector as a whole.
If A-Train ran into the .30's with pure speculation, I can't imagine where KMAG will go based on real filings and updates from the company. This kind of growth in rarely seen, let alone coming from a company on this exchange.
Ture longs here should be patient, as KMAG will reward them well into 2013!
Yet another sticky worthy post imo! Huge is right, I used to be a manager for a multi-million Jewelry Company and I know this is what retail has been dreaming of. It's a multi-faceted solution to a problem that has burdened retail for years. The outlook here is phenomenal with this technology. KMAG could see growth that only a handful of pennies ever get to. These companies are very rare on this exchange and I truly believe we are investing in a company that could surpass most peoples expectations.
Great DD as always Diamond, thanks for the hard work you have put on this board...I believe we have one in the making that'll leave our A-Train growth in the dust!
Great post Fly,
Anyone who has done their DD here should clearly see what a gem this is. Best part is, most of the great DD has already been done for them. Between you, lowman, Diamond, Ceeker, Roo5guy, and everyone else who has contributed their research there is absolutely no reason not to invest here.
I see that a lot of people are concerned with the day to day trading, I bought more today and will add any chance I get. For us longs, these daily up/down ticks are of no concern. I am looking forward to .05 and beyond. With all of the updates that await us, we are going to have a great rest of the year and 2013.
I have yet to seen another stock on this exchange like KMAG. Folks are starting to see potential here. Those who buy and hold at these levels will be greatly rewarded for their wise investment decision...just like those of us that were investing for the last few months when the company was just as great but without recognition.
Thanks for your continued valuable input!
Good to see you here Ken. Great board you've got going...KMAG is just beginning here, fundamentals alone give her a .05 valuation. With all the anticipated updates from the company this month, I suspect we may get the before the end of August. No P&D here, good old fashion investing.
I agree Diamond, but gotta say couldn't have done it without the great DD and input from you and the other intelligent investors on this board. It was nice to notice this 'Diamond in the Rough' when it wasn't getting the attention it deserved...but you can't keep a good thing down forever, and I'm glad others are noticing the value here and taking KMAG where it belongs.
KMAG still way below true valuation here. Great strength for a great company. I'm very excited for the rest of the year and 2013. Congrats to all the well deserving longs...we are slowly getting there.
It's good to have a conservative outlook when there are so may wishing for the skies. So, for the sake of staying grounded, I appreciate your posts. I do however, have a bit of a rebuttal to your earlier post.
First, I like charts...they tell a story, but in the end that is all they do. If my chart reading abilities could make me millions, I would've been there a few times over. So this is no end game, charts reflect history...and as we all know "past performance are no indication of future results."
Second, the history of KMAG...I understand that you went back and read the same hopes and ambitions about this stock from a few years back, and those ambitions of the traders at that time was understandable. But, there a few catalysts that kept KMAG from consistent growth. If you run through some of the valuable DD done here by diligent investors, you would see that the timing of the industry coinciding with the CEO's health problems (which to me is the main contributor) held a good thing from reaching new pinnacles.
You 'brush off' the fundamentals by simply stating "they are the same". But are they really? When you make statements like that please back them up with Quarterly Reports and/or filings. A simple ad hoc statement with no backing doesn't fly here...especially not with the type of longs that are here. KMAG's financials are undeniable, actually they would go head to head with many AMEX-NASDAQ companies showing growth...but in a more exponential way.
Regarding RFID and Cloud, they are two different sectors completely...one targeted towards tangible and the other non-tangible. So this argument is dead in the water in its infancy.
Technical trading has been good to me short term, but it's all about timing and for the most part is a short term trading approach. Fundamental trading is where patience is key, it takes the market time to reflect the true value of fundamentally sound companies. This is in part because of the slow nature of growth, as well as the recognition a company needs to gain investor sentiment and interest. We are slowly building that base here.
KMAG is a long term investment for me, because I have done my homework and realized this is one stock that that sets itself apart from the rest in Pink Sheets. We are not dealing with dilution, non-revenue generating empty ideas, and unreliable CEO's that promise the world then disappear. Rather, here we have a hard working CEO that is taking his company forward by building a solid fundamental foundation. Growing sales numbers combined with the increasing acceptance of RFID technology is setting the stage for Jeff and KMAG to be very successful. If you don't believe me, just look at the filings from this year alone, and it will be clear as daylight as to where this company is heading.
Good luck to you in whatever you decide, I will be here for a while.
I agree with you here, the point you made sheds a brighter light at the type of company we are invested in. In almost all other pinkies there are those randoms that drop by and point out the inevitable negatives of the stock involved; that's because 99% of the securities in the pinkies have one or more major issues with them.
When there is absolutely no negatives involved with an exponentially growing company that is led by a leader who is following through on their promises, it becomes really difficult for anyone to drop in and try to bash the company.
People who are invested here really need to think bigger...MUCH BIGGER than they are accustomed to. Opportunities like this come a few times every year. I was invested in 3 of those opportunities this year through my detailed DD. By far, this has the best foundation and promise out of any of them. Those stocks saw gains of 500%-2500%...where will KMAG take us?
Very true, this is as conservative as you can get. If I were to compile the same study with a compounded relative growth rate based on the expectations of the company for the rest of the fiscal year, we are easily looking at anywhere between .15 to .25 cents per share. This is the channel KMAG is most likely to trade in 2013. Add in the uplisting, NOBO, the client list update, and even further increase in revenue...well then, we are talking near half dollar to dollar range in near term.
Think about it, KMAG!
KMAG Estimated PPS is .0531
Gross Profits were 19% of sales or $164,976. Operating Income rose 1194% in the 3 months ended in April 2012 vs same quarter the previous year. The expenses rose as there were more sales so that is the cost of doing business.
PPS is calculated by the EPS and P/E average ratios of the industry. I already submitted my research based on this and the actual sales numbers along with expected growth in a prior post.
A positive Operating Margin is always good, there are many companies out there trading on the higher exchanges with negative Operating Margins. These companies like Sprint are losing money every quarter and yet trading in the dollars. So you can't base a PPS on that. You can however, base a companies health with the Operating Margin. Positive is always good!
There is also the growth prospect. The best money in the market is made when a start up or an emerging smaller company starts expanding business and shows exponential growth. That's what we have here. Unlike most pennies out there, there is actually products, sales, and income. Amazingly enough, there is also the growth factor.
2012 Quarter sales numbers beat the entire previous fiscal year...and that was in 3 months!
Look at these numbers, here's what exponential growth looks like:
2011 Fiscal Year Total: $858,802
2012 Q1(Jan-March) $866,176 +.086% Increase
2012 Month of May Alone: $935,000 +7.95% Increase
2012 Month of June Alone: $1,105,480 +18.23% Increase
Now, let's assume that this growth will slow to an average of 3% increase in month to month sales for the course of 12 months:
July: $1,138,644
August: $1,172,803
September: $1,207,987
October: $1,244,226
November: $1,281,552
December: $1,319,998
January: $1,359,597
February: $1,400,384
March: $1,442,395
April: $1,485,666
May: $1,530,235
June: $1,576,142
July: $1,623,436
Total: $17,783,065
Gross Profit: $3,556,613 (20% of Sales)
Net Income: $1,422,645 (8% of Sales w/compounded improved averages)
EPS: .0023 (Net Income/OS)
Median Sector P/E: 22.74
Estimated PPS: .0531
Current PPS: .0085
Expected PPS growth: 524.71%
Are you interested in that kind of return?
Important: This PPS related study replaces my earlier submission where Net Income was estimated at 20%. The update shown here takes into consideration a much lower Net Income percentage rate of 8%. This Net Income percentage takes the most recently reported 5% net profit margin and accounts a very slim compounded growth rate.
References:
KMAG Provides Company Update and Shows Significant Financial Progress
http://ih.advfn.com/p.php?pid=nmona&article=52946636
KMAG 2012 Q1 Report
http://www.otcmarkets.com/financialReportViewer?symbol=KMAG&id=84177
KMAG Announces June 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53545210
Great day folks, this is just the beginning of the awaited uptrend. With the groups that have come in expect wild up/down swings, but every level of the way we will be creating higher lows and higher highs. We should be trading near the .05 range as this is where KMAG deserves to be with the fundamentals alone. Factor in the patents, etc and we are looking very good here. Buy and Hold, no brainer!
Nice action today...seems the tereadmill on an incline, would you mind pm'ing me the email Roo?
I am indeed...I realistically expect exponential growth in the PPS just like KMAG's earnings. My initial sales will not start until the nickel level. I expect a range of anywhere between .05-.15 by next summer...So I will be selling up as the PPS nears levels which reflect the companies fundamental health. I guess I've always been sort of conservative, but it helps me sleep better at night
This is just the beginning here. I have my sell orders starting at .05. KMAG will trade where it deserves. I foresee a continuous uptrend here going into 2013. By spring of next year we should easily be trading in the nickel range. Buy and hold and you will be happy you did. No brainer here!
Oh INHX...was in my watchlist when it was trading around 2 bucks...my biggest regret yet...will not let the same thing happen here though...holding KMAG until at least May of 2013.
Today's gains are chump change compared to where this is going...in a few months people will be on their L2's saying come on .06's!
All you folks are pandering about nothing...this will move up nice and slow. This is a longer term play, one you hold for at least a few months. Next year, I'll be smiling to the bank.
I'm in until next summer...KMAG speaks for itself...this will be in the nickel range next year.
Yes it was, if you cared to scroll down before your ADD kicked in you'd see my calculations were based of compounding growth margin from 5% to 8%. Any other rebuttals?
KMAG Estimated PPS is .0531
Gross Profits were 19% of sales or $164,976. Operating Income rose 1194% in the 3 months ended in April 2012 vs same quarter the previous year. The expenses rose as there were more sales so that is the cost of doing business.
PPS is calculated by the EPS and P/E average ratios of the industry. I already submitted my research based on this and the actual sales numbers along with expected growth in a prior post.
A positive Operating Margin is always good, there are many companies out there trading on the higher exchanges with negative Operating Margins. These companies like Sprint are losing money every quarter and yet trading in the dollars. So you can't base a PPS on that. You can however, base a companies health with the Operating Margin. Positive is always good!
There is also the growth prospect. The best money in the market is made when a start up or an emerging smaller company starts expanding business and shows exponential growth. That's what we have here. Unlike most pennies out there, there is actually products, sales, and income. Amazingly enough, there is also the growth factor.
2012 Quarter sales numbers beat the entire previous fiscal year...and that was in 3 months!
Look at these numbers, here's what exponential growth looks like:
2011 Fiscal Year Total: $858,802
2012 Q1(Jan-March) $866,176 +.086% Increase
2012 Month of May Alone: $935,000 +7.95% Increase
2012 Month of June Alone: $1,105,480 +18.23% Increase
Now, let's assume that this growth will slow to an average of 3% increase in month to month sales for the course of 12 months:
July: $1,138,644
August: $1,172,803
September: $1,207,987
October: $1,244,226
November: $1,281,552
December: $1,319,998
January: $1,359,597
February: $1,400,384
March: $1,442,395
April: $1,485,666
May: $1,530,235
June: $1,576,142
July: $1,623,436
Total: $17,783,065
Gross Profit: $3,556,613 (20% of Sales)
Net Income: $1,422,645 (8% of Sales w/compounded improved averages)
EPS: .0023 (Net Income/OS)
Median Sector P/E: 22.74
Estimated PPS: .0531
Current PPS: .0039
Expected PPS growth: 1,261.54%
Are you interested in that kind of return in one year?
Important: This PPS related study replaces my earlier submission where Net Income was estimated at 20%. The update shown here takes into consideration a much lower Net Income percentage rate of 8%. This Net Income percentage takes the most recently reported 5% net profit margin and accounts a very slim compounded growth rate.
References:
KMAG Provides Company Update and Shows Significant Financial Progress
http://ih.advfn.com/p.php?pid=nmona&article=52946636
KMAG 2012 Q1 Report
http://www.otcmarkets.com/financialReportViewer?symbol=KMAG&id=84177
KMAG Announces June 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53545210
Here's your math buddy, read on:
The current state of the company and the recent filings allow us to put the information into numbers and get an idea of the PPS for KMAG in the coming year. Here's the breakdown:
Sales Growth & Future Earnings Estimate:
May 2012: $935,000
June 2012: $1,000,000 (Estimate Based on Company Filing Dated June 29,2012: "June 2012 results to date are exceeding May results making for an exponential Q2 growth.)
Based on a low future earnings estimate which only assumes the company stays consistent with no sales growth for the rest of the year, we can calculate an average earnings of $1,000,000 per month in sales by the company. In reality, these numbers should be growing based on the companies reported outlook.(Ref. Below) For the sake of this future growth analysis, we can summarize the following:
For the remaining 10 months until May 2013, the company averages sales of $1,000,000 per month equaling annual earnings from May 2012-2013 of $12,000,000. Based on this figure we can calculate where the KMAG PPS should be based on sector and industry averages:
Annual Sales: (May 2012-May 2013) $12,000,000
Earnings Per Share: .0039
Outstanding Shares/Net Income: 609,420,100/2,400,000
Net Income is Estimated at 20% of all Sales: 12,000,000*.2
PPS based on Industry Average P/E of 22.36: $.0872
Earnings Per Share multiplied by Price to Earnings.
PPS Based on Sector Average P/E of 23.12: $.0901
PPS Based on Median Industry and Sector Average of 22.74:
>>>$.0886<<<
Remember, these earning are not taking into consideration of the type of growth the company is anticipating in the near future as outlined by their recent filing. All of the information here is based upon company filings and Industry relevant averages and should be considered as informational only. Please do you own Due Diligance before investing in any stock. For your informational needs, references used in this article are provided below.
References:
KMAG June 19 Public Release: Sales Growth Update
http://ih.advfn.com/p.php?pid=nmona&article=52946636
KMAG June 14 Public Release: KMAG is Set for Phenomenal Growth
http://ih.advfn.com/p.php?pid=nmona&article=52793414
KMAG Share Structure:
http://www.otcmarkets.com/stock/KMAG/company-info
KMAG Industry P/E Averages:
http://www.reuters.com/finance/stocks/financialHighlights?symbol=KMAG.PK
KMAG June 2012 Quarterly Filing:
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=84177
You do know that you can be held liable for such comments right? If you are going to make a statement like that, you better be ready to post factual support for your statement. Otherwise, keep the empty false comments to yourself. As for your request for the Math part of where the PPS should be, I will dig up an earlier post for you to read and learn at your leisure!