NEW YORK, June 11, 2012 /PRNewswire/ -- 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
- - $11.25 Million Purchase
Orders
- 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 2012, the Company has already reported $11.25 million in purchase orders, which is more
than triple all of 2011 total revenues.
On a rough basis, PERL generates around 20% of their total
revenues into net income profit to their bottom line, give or take.
The shortfall in Q4 2011 was due to a one-time charge for
equipment, and misc, but on a whole they generate net income of a
20% to 30% basis.
Thus, if the Company has already generated around $11.25 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.
2012 Revenue and EPS Projection
With a potential merger for their aviation division projected to
bring in an additional $6 million in
sales revenue, and additional contracts coming in for the rest
of the year, the company could be on track to report total revenues
for fiscal 2012 in the range of $15
million, and this being very conservative.
If we use the same formula as we have for projecting its current
valuation, then 20% of $15 million
comes out to potential $3 million in
net income profit. If we based this on say 300 million outstanding
to take into account any future dilution in 2012, we come out with
a rough EPS projection of around $0.01 per share. On a conservative PE of 10 to
15, that would give PERL an estimated target for 2012 in the range
of $0.10 to $0.15 per share.
Given these new contracts, and basic fundamentals, Ludlow
Research has issued a current short-term price target on PERL of
$0.05 to $0.06 per share, with a
longer-term target of $0.10 to $0.15
per share for the coming months.
PERL is currently trading at $0.02
per share
The company is targeting to be OTC Current within the next week.
New contracts/revenue updates will be released shortly.
About Perla Group International
Perla Group International is an emerging leader in the
international military, police and security solutions sectors. It
was established with the vision to become the industry's leading
turnkey solutions developer and services provider. Perla Group's
success is built on a combination of the trust, backing and support
of top industry specialists and a talented team's unwavering
commitment to service excellence. Perla Group International was
founded in 2007 by D'Alberto, after having established himself in
the market with a reputation of being first to market with
innovative, "best of breed" products and services. Perla
International Group is headquartered in Ft. Lauderdale, Florida with regional offices
in Dubai, UAE, and Kabul, Afghanistan. Although the Company's
divisions operate independently they work together quite often and
cross pollinate as customers of one division are quick to take
advantage of products. With its four divisions; Perla Telecoms,
Perla Aviation, Perla Armored Cars and Perla K-9 Services, it
places Perla Group in a unique position to service many of its
existing clients with multiple value added services and thereby
attract key new clients.
Email info@perlagrp .com or visit www.perlagrp.com
"Safe Harbor Statement" under the Private Securities Litigation
Reform Act of 1995. This press release contains forward-looking
statements that involve risks and uncertainties. The statements in
the Release are forward-looking statements that are made pursuant
to safe harbor provision of the Private Securities Litigation
Reform Act of 1995. Actual results, events and performance could
vary materially from those contemplated by these forward-looking
statements.
Contact:
Perla Group International Inc.
Phone: 954-903-1966
Email: info@perlagrp.com
SOURCE Perla Group International Inc.