Ludlow Research Issues Upgrades on PERL and ECDC
By: staff reporter, John Bodger
Last Updated: April 30, 2012 - 8:30pm EST
(NEW YORK)--Ludlow Capital, an equity research firm based out of New York City, issued research upgrades on East Coast Diversified Corp. (OTC:ECDC), and Perla Group International, Inc. (Pink:PERL).
Perla Group International (PERL), a leader in the international military, police and security solutions sectors, was upgraded with a short-term price target of $0.06 to $0.09 per share.
For the first few months of 2012, the Company has already reported $7 million in purchase sales orders, which is more then double all of 2011 total revenues of $3.1 million. On a rough bases, PERL generates around 20% of their total revenues into net income profit to their bottom line, give or take.
Thus, the Company has already generated around $7 million in new purchase sales orders in 2012, which would equate to around $1.4 million in potential net income profit for the company. With only around 224 million shares issued and outstanding, and current net profit in the $1.4 million range, that would come out to roughly $0.006 EPS for the company currently. If given a PE of say 10 to 15, which is still considered conservative for a fast growing small cap company, that would come out to a valuation of around $0.06 to $0.09 per share, currently. PERL was last traded at $0.0075 per share. (read full report)
East Cost Diversified Corp (ECDC), through its operational subsidiary Earthsearch Communications, develops a number of GPS and social networking web and mobile applications. The Company's recent $2.5 million in equity institutional backing clears the way for the company to now execute on their business plan by rolling-out their social network web and mobile applications, and closing on larger GPS/RFID orders.
Recent valuations from Yahoo's $20 million acquisition of IntoNow, a competitive second screen TV-app such as Rogue Paper's TV-Tune In, which is now a subsidiary of Earthsearch, gives the company an immediate valuation boast. Add in the clearance of notes payable, conversion levels on recent financing no less then $0.013, and improving earnings outlook, ECDC is primed for a breakthrough of its 200-day moving average.
This, Ludlow Capital upgraded its short-term price target late Friday on ECDC to around $0.02 to $0.03 per share, with a mid-term target in the $0.05 to $0.08 range, conservatively.
Ludlow Equity Research is a New York based equity research firm focused on providing our clients, and individual readers, with in-depth research coverage and opinions on the small-cap securities market. For over 14 years we have aimed to providing our subscribers a simple way of evaluating the current and potential value of small-cap stocks, and any risks that may effect those valuations going forward. Our goal is to provide traders with an easy way to make investment decisions based on current and future valuations. Ludlow Equity Research is a division of Ludlow Capital, Inc. www.ludlowresearch.com
