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Research, Report & Profiling Services
by IPOdesktop.com
Polaris International Holdings Inc. (PIHN.PK)
Stock symbol: PIHN.PK
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Common shares: 12/28/09: 2845mm |
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Stock price 1/22/10: $0.0005
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..Float 1000mm (est) |
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52-week price range: $ 0.0002 - .0056
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.Equity market capitalization: $1.4mm |
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Recent News
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BUSINESS |
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Information Technology ("IT") outsourcing services for Network Infrastructure, ASP and Cloud Computing Solutions. |
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RECENT DEVELOPMENTS
Completes two major acquisitions |
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Completes Japanese Acquisitions & Targets US Market Share, Dec 1 read more |
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Completes Acquisition of Staff IS' IT Business - First Global Expansion, Nov 12 read more |
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Together their combined current list of clients includes some of the top 100 global brands, corporations and financial institutions. |
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OUTLOOK |
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Outsourcing of IT services is just beginning to take hold in Japan and Asia. Expenditures on information technology by Japanese enterprises have grown rapidly, according to IDC. IDC reports that the Japan IT Outsourcing Market was $23.6 billion in 2006 and is expected to grow to $28.9 billion in 2012. IDC also says that The Asia/Pacific Region excluding Japan (APEJ) is still viewed as the bright spot with IT spending expected to reach US$196 billion by year-end 2009. Of these amounts, IT services market is expected to remain healthy and grow to US$49.4 billion in 2009 PIHN intends to (a) participate in these revenue growth and (b) enter other Asian markets including China to capture a substantial portion of their outsourced IT and technology infrastructure cabling. |
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More than ever, companies are being forced to outsource IT Services to reduce costs and gain efficiencies. As the economic recovery begins, PIHN can capitalize on the well above average economic growth that has occurred historically following recessionary periods. |
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Cloud Computing is a recent but accelerating portion of the IT Services market. It is by its very nature a global market vertical, and PIHN with its global expansion roadmap will be well positioned to serve companies with an international footprint, providing both the infrastructure support, ASP support and the right solutions when it comes to incorporating Cloud Computing for near-term and future logistics. |
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GROWTH PLAN |
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Build out Global IT services network through internal, organic growth, acquisitions and strategic partnerships |
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Acquisitions completed in Japan provide Polaris high profile customers and experienced staff plus steady revenues. Staff IS in the past has had stable annual revenues in the $8mm range with approximately 10% EBITDA. |
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Under a new management, PIHN believes it can bring Staff ISs business back to $8 million in revenues within 24 months. |
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In addition PIHN believes there will be a synergistic effect by having an ASP division (Polaris Technologies) in Staff IS. |
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U.S. based business: (a) The PIHN plan is to begin a U.S. based business in 2010 Q1. targeted to specific markets. (b) In addition PIHN is looking at potential strategic acquisitions of US-based, complementary companies. |
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FINANCIAL RESULTS |
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STAFF IS historical revenue, June 30 fiscal year end |
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2007: $3.4mm
2008: $3.6mm
2009: $3.1mm |
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September, 2009 quarter
annualized revenue run rate of $2.6mm, 15% pre-tax profit run rate of $400,000
Revenue $641,530
Expenses $541,093
Income(Loss) $100,437 |
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Two months ended Nov 30, 2009
annualized revenue run rate of $3.4mm, 29% pre-tax profit run rate of $984,000
Revenue $574,537
Expenses $410,515
Income(Loss) $164,022 |
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POTENTIAL MARKET CAPITALIZATION |
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The above financial results demonstrate that PIHN is now a very profitable cash-flow positive business. |
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As indicated above management believes that it can grow the STAFF IS division back to the historical $8mm per year run rate. Based on the above financial results an $8mm annual run rate could generate annual pre-tax profits in the range of 25% or $2mm. Assuming a 45% tax rate then after tax profits could be in the range of $1.2 million. |
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Even a 10x price/earnings multiple would put the market capitalization at $12mm, up from the current $2mm market cap, or an increase of six times. In addition, synergistic acquisitions could provide additional, significant upside potential. |
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Note: the IT division of Polaris Technologies for the five months ended November 30, 2009 essentially broke even on annualized revenues of $800,000 |
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Address : Polaris International Holdings, Inc., 16942 Gothard St., #I, Huntington Beach, CA 92647
Staff IS Co.,Ltd, Harmony Terrace 3F, 1-32-2 Honcho, Nakano-ku Tokyo, Japan 1640012, Phone:+81-3-6276-5031, FAX:+81-3-6276-5032
Telephone: Polaris International, 310-849-1094
CEO: Kuni Misawa
Web Sites: http://www.polaris-int.com/ http://www.staffis.co.jp/
State or other jurisdiction of incorporation or organization: DE
Transfer Agent: Signature Stock Transfer, Inc.
Investor contact:: Chuck Cibluka 858-213-4154 Stock Services LLC info@polaris-int.com |
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MANAGEMENT & ADVISORY TEAM |
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Kuni Misawa ~ CEO & President |
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Mr. Misawa is an international entertainment and media expert and special project producer with over twenty-five (25) years experience in the business. As an executive with several entertainment and media companies, he has developed, promoted and produced concerts, TV special and special projects. Mr. Misawa and former partner, the legendary Promoter Tom Hulett were responsible for an assortment of music concerts and events in venues as large as Japan's Tokyo Dome with headlining artists such as Earth, Wind & Fire. His reputation is impeccable within the music industry. In addition to his experience in the entertainment industry Mr. Misawa has also been involved with development of several Internet companies. He has also been integral in raising capital for various entertainment and educational ventures and companies, and honorably served as a committee member on the Minamata Environmental Project headed by Mr. Hosokawa, the former Prime Minister of Japan. |
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Mr. Misawa produced the Hiroshima Peace Concert, with endorsements by the United Nations, the Hiroshima City Council and Hiroshima Prefecture and "Joint 90" a concert for UNICEF. In addition, Mr. Misawa produced a Magic Special show featuring Hollywood legend Tony Curtis for network television and a Music Special for PBS with a guest appearance by Stevie Wonder. |
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Mr. Misawa partnered with six-time Grammy award winner Maurice White to found "Magnet Vision", an International record company and recording studio based in Santa Monica, California, serving as the President of the company. |
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Mr. Misawa also co-developed the "Sweet CD-Rom Digitzine" which received the 32nd Annual World Fest Houston International Festival Gold Award in the category of New Media Interactive-Educational-Children Division in 1998. He was the founder and Chairman of MPEG Supersite, Inc., a company that was listed on the OTCBB. |
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Mr. Misawa was Director of Japan Operations of B2 Networks and Director of U.S. Operations of Staff Is Co., Ltd. U.S.A. He is Founder of Polaris International Holdings, Inc. |
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Mr. Misawa majored in Philosophy at Gakushuin University in Tokyo, Japan. He also studied music philosophy at Santa Monica College. |
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Naoto Higuchi ~ Executive Vice-Presiden |
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Mr. Higuchi was the Executive Vice-President, Staff IS Co., Ltd. from 2006 to March, 2007. He was also the owner and founder of Polaris Technology, Inc. |
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Mr. Higuchi was formerly Director, Network Consultant, 3COM Japan from 1999 to 2001, Technical Director AT&T Labs, AT&T Japan , Ltd. from 1995 to 1999, Assistant Vice President, IT, Goldman Sachs (Japan), Ltd. from 1995 to 1995, Senior Telecom Analyst , IT, CS First Boston (Japan), Ltd. from 1993 to 1995, Network Engineer, Digital Equipment Corporation Japan from 1987 to 1993, and Systems Engineer, Fujitsu Ltd. from 1985 to 1987. |
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Mr. Higuchi is experienced in Global (US/Europe/Asia) network strategy planning and standardization for a multi-national financial institution that integrates and optimizes network infrastructure including telephone, open voice, voice mail, LAN/WAN and legacy main frame access environment. Mr. Higuchis expertise is in formulating Network infrastructure, integrating project management for merging two independent financial institutions (Tokyo), from architecture design through implementation. He supported the standardization of the IT environment which consists of communication equipment, client/servers and mainframes networked globally from the Tokyo hub. He provided technical data network consulting for a multi-national financial institution, developing a new regional hub function in Singapore, defined backup functions in Tokyo, and transferd the operation from Tokyo to Singapore without interruption to global network operations. |
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Mr. Higuchi was involved in project management for an overall LAN/WAN network architecture redesign for 50 sales offices in a multi-national pharmaceutical company, to support exchange of sales, marketing, medical, management, financial and administrative information within Japan. |
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Mr. Higuchi was also project manager of a structured cabling system design and implemented a large-scale trading room (200 positions) for a multi-national security firm. |
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Mr. Higuchi worked for LAN/WAN network design providing a multi-national chemical company with 300 nodes over the Asia-Pacific region and designed and developed the Science and Technology Agency network which interconnects multi-vendor mainframe machines through virtual database and terminals using X .25 protocol. |
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Mr. Higuchi worked in the technology transfer, training program development and service structure definition for new US/European network equipment to adapt them for the Japanese market environment and was involved in design, development and implementation management of a brokerage firm stock information retrieval system in a client/server environment, to provide information to asset management companies and major investors. oto Higuchi is the executive vice-president of MWM. Prior to joining Modern World Media inc., Higuchi was with 3COM Japan and served as a director of the Network consulting group. Before that, he served in technical director roles at AT&T laboratories. Higuchi's previous experience also includes financial information technologies at Goldman Sachs and CSFB, including development of the firm's financial network infrastructure. Prior to financial institute, he served as a network engineer for customer services division at Digital Equipment Corporation. He began his career at Fujitsu in 1985. He holds a B.S. in earth science from Okayama University in Okayama, Japan. |
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Charles J. Larsen ~ CFO |
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Mr. Larsen began his career in the investment industry in 1989 as operations manager for commodity trading advisor Peskin & Associates, CTA in Chicago, after serving 8 years in the United States Coast Guard. At Peskin he managed client billing and reporting, internal trading operations and floor broker communications. |
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In 1991 Mr. Larsen joined Integrated Decision Systems, an investment industry software development firm in Los Angeles, as a development and implementation consultant to large institutional investment advisors. |
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In 1995, Mr. Larsen joined Tower Asset Management as an Assistant Portfolio manager. Assuming management of the trading, technology and operations departments, Mr. Larsen contributed substantially to a successful restructuring effort in 2003 and left the firm in 2006 as Senior Vice President of Operations & Business Development to join Financial Management Advisors. As Chief Financial Officer at FMA, Mr. Larsen also assumed all Chief Operations and Chief Compliance responsibilities, reducing overall expenses by more than 10% and employee healthcare costs by more than 45%. Mr. Larsen secured $18 million in financing to deleverage the balance sheet and provide ongoing operating capital. |
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Mr. Larsen left FMA in 2007 to consult investment advisory firms on technology and operations for Faye, Pollack & Associates, Inc. At FPA Mr. Larsen launched the Investment Advisor Services Group, managing all aspects of investment advisor related business. Mr. Larsen attended Pepperdine University and served two tours in the United States Coast Guard. |
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Toby Cohantz ~ CSO |
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Mr. Cohantz has been an advisor to POLARIS since September 2007. He is a strong advocate of cloud computing solutions that are measured, balanced and the right choice at the right time. Mr. Cohantz for over a decade has been focused on delivering media and communications over IP. At LaserShield Systems, Inc. located in Las Cruces, NM, he was Director of Media, Communications and Training where he instituted several automated IT solutions for internal management, sales and customer outreach. LaserShield Systems, Inc. provides a home security product and service through major big box retailers and a dealer program. Prior to Lasershield, Mr. Cohantz served as VP Marketing, North America for Tricastmedia, located in Glasgow, Scotland. Tricastmedia delivers a leading edge GUI development platform for mobile phones and was marketed to the top mobile phone providers such as Verizon, Virgin and Sprint. |
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IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information. |
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DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up to eight thousand five hundred dollars from a third party or the company for preparation and posting of this report, audio interview, virtual road show and other advertising services. This constitutes a conflict of interest as to IDs ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page. |