Polaris International Holdings (PIHN)

[TownScapes]

Possible penny???

The old Polaris website had estimated a net profit of over 200K for FY 2010. With Q3 showing a profit of 120K, it’s reasonable to think they might meet their target. Of course Q4 will have to be slightly more profitable than Q3.

Q1 net ------------------------------- (28,000)
Q2 net ------------------------------- (57,000)
Q3 net ------------------------------- 120,000
Q4 net ------------------------------- 165,000*
________________________________________________
2010 net ----------------------------- 200,000*

I’m assuming the acquisition will be completed, thus the recent increase in OS. We know the company they are eyeing is earning approx. $12mil/yr with a 30% profit margin. That would mean PIHN will be adding approx. $3.6 mil/yr in net profits. If the transaction is completed by Aug. 30th, that would add $1.2mil to the bottom line and equal a grand total of approx. $1.4 mil. in net profits for FY 2010.

FY 2010 PE projection using 4.5 billion OS:
PE 5 ~ .0016
PE 10 ~ .0031
PE 15 ~ .0047

FY 2011 will include the full $3.6 mil. net from the acquisition, plus what… $100K per Q average for Staff IS, etc.? That equals approx. $4 mil in net profits.

FY 2011 PE Projection using 4.5 billion OS:
PE 5 ~ .0044
PE 10 ~ .0089
PE 15 ~ .013

And just in case…

FY 2011 PE Projection using the full 7 billion AS:
PE 5 ~ .0029
PE 10 ~ .0057
PE 15 ~ .0086