KMA Global Solutions International (KMAG)

[DragonBear]

Should we compare all of our pink and grey sheet investments to NYSE companies?

You continue to miss the point. If you really believe you are "investing", then it doesn't matter where the stock trades. You should hold the CEO to the same standards everywhere.

I invested here knowing the risks. Does that mean I give JR a pass on doing the right thing here?
Absolutely not!

Could you give an example of not giving Reid a pass since the suspension, and his response to your concerns, through specific action he has taken?

Look at the history of the company and JR. Those with blinders on will not see the potential.

Ok, let's look at the history. In 2010 Reid stated:

As a result of the fact that KMA Canada has licensed its intellectual property to r-pac Hong Kong it does not provide or have

A. principal products or services.
B. distribution methods.
C. publicly announced new products or services.
D a competitive position in the EAS industry.
E. sources (or need) of raw materials
F. the need of government approval of principal products or services, or requested government approvals.

He told you in 2010 there would be no funding for R&D, purchase of plant or equipment in 2011. Yet starting in Q2 2012 "sales" came out of the blue. How do you go from essentially $0 sales to $9M in 3 Qs during 2012, without any financing for R&D, or to build factories in 2011? You go to rpac, and ask to become a distributor for them. Where Reid concentrates on selling the products he gets a royalty from. Note he gets the royalty, with KMAG serving as a pass-through, no benefit to stockholders. So what is this great potential you see in KMAG, where the company is a distributor of another company's products? What great potential do you see, where net income went down from $173K in Q3 to $132K in Q4? You do realize Reid claims the company owes him $1M? Say goodbye as a stockholder to all accrued value from the net profit for the next 5-6 quarters. Then there's the SEC problem.

What I see as the potential for this company is: A CEO with a high probability of being subject to SEC Administrative action, which ends up with him being banned from the market, with the stock eventually being delisted. The company continues to exist as a private company. It may take anywhere from 1-3 yrs to get there. Until then a company acting as a rpac distributor, where sales may already be capped. Reid doesn't give you guidance does he? Just another thing he gets a pass on.