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Tuesday, 05/01/2012 11:42:25 AM

Tuesday, May 01, 2012 11:42:25 AM

Post# of 76901
$PERL 009 Upgrade to .10 to .15 (read)

Perla Group (PERL) Target Upgraded to .10 to .15 per share

(NEW YORK)--Ludlow Capital, an equity research firm based in New York City, upgrades its research opinion on Perla Group International Inc. (Pink:PERL), a leader in the international military, police and security solutions sectors, with a price target of $0.10 to $0.15 per share.

Research Highlights

- 2011 Revenues of $3.1 million, Profitable
- Already has Doubled 2011 Revenues
- $6.25 Million Purchase Order
- Military Contracts
- Shares Reduced by 55%
- Tight Public Float

2011 Earnings, Profitable

The Company is an operational and global provider of security and military equipment and solutions. For the year ending Dec. 31, 2011, the company reported total revenues of $3,126,708, and net income profit of $361,373. For the ending period, the company reported it was cash-flow positive at the end of the fiscal year.

So far, for the first few months of 2012, the Company has already reported $7 million in purchase orders, which is more then double all of 2011 total revenues.

On a rough bases, PERL generates around 20% of their total revenues into net income profit to their bottom line, give or take. The short=fall in Q4 20111 was due to a one time charge for equipment, and misc, but on a whole they generate net income of a 20% to 30% bases.

Thus, if the Company has already generated around $7 million in new purchase orders, that would equate to around $1.4 million in potential net income profit. With only around 224 million shares issued and outstanding, that would come out to roughly a $0.006 EPS for the company currently, on a general estimate.

If you give PERL 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 current valuation of around $0.06 to $0.09 per share, as of right now.

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