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Re: steelerfan7 post# 75956

Saturday, 07/21/2012 5:06:59 PM

Saturday, July 21, 2012 5:06:59 PM

Post# of 232508
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