Replies to post #142420 on KMA Global Solutions International (KMAG)

[DragonBear]

Also, for those new to this stock, take a look at Turkish Master's analysis

I'll definitely give ya a "C" for courage. At least you tried. However, your assumptions are bogus. For example look at the quarterly report Reid gave for Q2. Total sales $3.35M for the 3 months. Net profit $294K which was deducted from the Stockholder liability of $1.6M. Net accrued value for stockholders: $0.00. For Q3 sales of $2.1M, and a net profit of $173K, which was subsequently deducted from the stockholder liability. Accrued value $0.00.

Note Q3 was lower than Q2 in sales. There goes your assumption monthly sales will grow infinitely from month to month - the reverse has happened. Not unusual for Q to Q. Most likely Q4 will be in the same range, plus or minus some small amount. Distribution "sales" of r-pac product goes from nothing in 2011, and have reached a plateau. Note also until you work off the remaining $1.2M stockholder liability at a rate of about $200K per quarter there is no accrued value for the stockholders.

IF the SEC goes away... IF current net profit holds at the current level you might have a stock worth 01-->015. Then for that to hold you have to make the HUGE assumption Reid wouldn't ever convert his remaining preferred shares. If that happens the stock value ends up 0067-0102. But again, until the shareholder liability of $1.2M is covered, maybe 6 quarters from now, you have nothing to accrue towards stock value. Until the SEC goes away, you have nothing period.

For those recently coming in, the shareholder liability is a combination of salary plus royalties Reid claims the company owes him.