Hot Penny Stock Pick
KMA Global Solutions International Inc.
(PINK:KMAG)
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Company Overview
KMA Global Solutions International Inc. is an innovator and internationally recognized leader in the Electronic Article Surveillance (“EAS”) industry, focused on providing cost-effective source tagging solutions for customers in the apparel, multimedia, sporting goods, food and pharmaceutical and general merchandise industries. KMA is ISO 9001 compliant.
What is Source Tagging?
Worldwide, retail shrinkage amounts to more than $70 Billion USD, of which about 40%, or roughly $28 Billion USD, is attributed to shoplifting. Retailers employ a wide variety of technologies and other measures to combat these staggering losses, one of the most popular of which is Electronic Article Surveillance or EAS.
EAS has been around for more than 30 years now and there are more than 800,000 EAS systems installed in stores around the world. While there are several different EAS technologies in existence, the bulk of all active systems today are one of just two dominant types. All EAS systems consist of tags or labels that are attached to or hidden in merchandise, and a set of detectors, usually installed at a store’s exits, which are designed to detect tags and/or labels when they have not been removed or deactivated at the point of sale.
Historically, the tags and labels were applied by hand to merchandise right in the store – a costly addition to a store’s labor expense. During busy seasons, goods often went on the sales floor without EAS protection, making them vulnerable to theft.
While in-store tagging is still performed today, a large and growing number of products are now “Source Tagged” by the product manufacturers. By sewing a tag into fashion items or applying an adhesive label inside of a product package or even in the actual product, manufacturers can provide a level of protection and compliance difficult to achieve at the store level, using much more economical means.
Demand for the adoption of Source Tagging was originally driven by some of the largest retail organizations in the world. Today, as a result of widespread acceptance, source tagging benefits retailers of all sizes across many market segments.
Source Tagging Technologies
There are primarily two EAS technologies that dominate the world market for retail theft prevention. Although originally available from just a few companies, both Swept Radio Frequency (commonly referred to as RF) and Acousto- Magnetic (commonly referred to as AM) are now manufactured by several companies located in North America, Europe and Asia, and distributed globally.
Although roughly equal in popularity, AM and RF are incompatible technologies. The tags from one will not activate the system of the other therefore, in order for source tagging to be effective, the tag installed at the source must match the technology in use at the destination store.
At KMA, they make each of their source tagging solutions available in both of these popular EAS technology formats, and in the case of their DualTag ™ , they combine the key elements of both, into a single label.
Investor Highlights
KMAG has developed the GEMINI tag, a dual technology, RFID/EAS reusable hard tag, that can simultaneously and seamlessly provide all of the needed functionality of an RFID tag, while also functioning as an EAS tag with complete compatibility with the most common EAS technologies in use today.
KMAG’s Q2 Sales revenue reached $3,350,938 which is an increase of $2,534,762 over Q1 Sales Total of $866,176.
KMAG has reported its first quarter results showing an increase in Revenue of 611% and with positive net income of $50,788 versus a loss of $4,641 in the first quarter in the previous year. Q1 sales results of $866,176 exceeded the previous entire fiscal year of $858,802 by $7,374.
Scott Dixon has agreed to join KMAG as the Chief Operating Officer. Mr. Dixon will be named as an Officer of the company and will be placed as a Board Member. He is a pioneer of the EAS source tagging business having spent over 25 years as a leader in the industry and heading up Sensormatic Canada through the transition of the acquisition by ADT.
KMAG , working with Milestone Automation has completed the development and is ready to deliver its newest RFID enabled label applicator. After more than 12 months of testing both Alpha and Beta versions of this equipment the company has completed the RFID enabled label applicator.
Recent KMAG News
August 27 – KMAG Develops New “GEMINI Dual Tag”
KMA Global Solutions International, Inc. (KMAG) KMAG announces the development of the GEMINI tag, a dual technology, RFID/EAS reusable hard tag, that can simultaneously and seamlessly provide all of the needed functionality of an RFID tag, while also functioning as an EAS tag with complete compatibility with the most common EAS technologies in use today.
Several major national and international retailers have announced a decision to implement RFID systems capable of tracking their inventory at the unit level, and will begin to implement the needed hardware in their stores beginning this year. Many others will follow suit over the course of the next few years. Most will begin to use RFID both for tracking inventory, and to perform the loss prevention duties that have, until now, been provided by their EAS system. Rolling out RFID in these enterprises will be a major undertaking and will proceed simultaneously on relatively small groups of stores until the changeover is completed across all locations. During the transition process, the retailers will continue to use their EAS system until the hardware transition is completed.
KMAG recognizes that there is a significant gap in the transition plans, as each store will require merchandise to bear both an EAS and an RFID tag until well after the process is completed. Applying separate RFID and EAS tags is an expensive proposition, which will be made considerably more economical through the use of the GEMINI tag from KMAG. KMAG has determined a market need numbering in the tens of millions, and possibly hundreds of millions of GEMINI tags over the course of the next few years as more and more retailers begin the technology switch.
Each GEMINI tag contains an RFID element that meets all Gen II EPC standards, as well as either of the most popular EAS elements, and can therefore simultaneously be read by the RFID system, while being detected by the EAS system in use in the store. Applying and removing GEMINI tags follows exactly the same process that the retailers employ today with their EAS tags, using the same equipment that they already own, and therefore requires no learning curve on the part of store employees or special equipment to put the GEMINI into use.
Retailers can continue to use the GEMINI tag even after they end the use of their EAS system as the RFID component will continue to be reusable and compatible with all of their needs.
KMA Global Solutions
438 Gibraltar Drive, Unit 11
Mississauga, ON
L5T 2P2
Canada
Phone (647) 478 8783
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