Ppmc step2

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1 – Can the Motomart data be used to prepare a reliable financial forecast? Why or why not? 

2 – If Motomart is included in the very large database used to prepare the financial forecast that supports the relocation of Motomart closer to Existing Dealer, what concerns might present themselves with respect to the remainder of the database used for this forecast? 
3 – Would you rely on this forecast?

4 – Examine your graphics to identify any seasonal (12-month) patterns. Do any exist? 
5 – Is there evidence to suggest that the process described above was being employed by Motomart?

Case 1 is from a firm called Purchase Point Media Corporation, or PPMC. PPMC was a thinly traded over-the-counter stock that issued some detailed financial projections. The data was presented in a very poor form; however, the substance and sequence of the data was organized in such a way that it was possible to compute a break-even point. Study PPMC’s “Projected Statement of Net Income” and additional informa- tion provided, then integrate marketing and finance techniques to write a report on the findings.
Case 2 is quantitative and involves the analysis of selected financial data for a firm we’ll call “Motomart.” Motomart was a retail automobile dealership seeking permission to relocate in an area already served by a similar automobile dealership. The existing dealership brought a lawsuit to block the reloca- tion. Although the data provided by the company is flawed, prepare a summary of observations and answer several questions about problems with the case.

Case 1: Purchase Point Media Corporation (PPMC)
This case is based on actual financial projections developed and provided by a publicly traded firm, Purchase Point Media Corporation (PPMC). Carefully examine the PPMC projections, which are presented in a sequence and format suitable for break-even calculation and analysis. After you calculate the break-even point, use additional, publicly available information to come to a decision with respect to market potential.
The increase in the price per share of PPMC stock suggests that, over time, the market may have reacted to their results and analyses, using a comparable methodology.