KMA Global Solutions International (KMAG)

[Turkish_Master]

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