UNDERVALUED PENNY STOCKS

[profithigh]

Bitzio, Inc. Growth in Asset Company a Game Changer

I like the comparable pps of BTZO to SQBG...

Currently BTZO is trading at a severely undervalued .0002


Current revenue for Bitzio acquisitions sits @ $2,493,628 annually. This is based off of the $207,804 revenue in the 1st month (the acquisitions did not report a full quarter under Bitzio but only 1 month of revenue) of actual reports from these companies. Given the large 76.56% profit margin of COGS Bitzio currently stands to make $1,909,121 in revenue for the fiscal year 2015. Latest 10Q can be found here: BTZO 10Q; http://www.sec.gov/Archives/edgar/data/1347078/000149315214003887/form10q.htm

To compare, SQBG rakes in $10,000,000 a quarter with a negative profit margin as of last quarter. Bitzio, as of last quarter looking forward, rakes in $623,412 with a 76.56% profit margin. SQBG Quarterly: SQBG 10Q; http://www.sec.gov/Archives/edgar/data/791770/000114420414068958/v393644_10q.htm

If we were to judge market cap valuation based on Revenue, 1/5 of SQBG's quarterly revenue would be $2,000,000 a quarter. If Bitzio's quarter revenue could increase roughly 300% per quarter (Roughly $1,870,236 quarterly) with more acquisitions and current acquisitions improving their revenue this would be possible.

Lexi Luu alone has a revenue stream of $600,000 annually(as stated here: BTZO Letter to Shareholders;http://finance.yahoo.com/news/bitzio-issues-letter-shareholders-191700040.html) or $150,000 a quarter. By last Quarters results the average revenue per quarter would be $207,804 seeing as 3 companies totaled $207,804 and there are 3 months per quarter each company would estimate to bring in $207,804 per quarter. This also shows that Lexi Luu has already begun to increase it's revenue stream by an estimated 38.5%. Continuing this trend for Lexi Luu, one could foresee an estimated revenue for next quarter to be roughly $280,000. If we were to go quarter over quarter Lexi Luu itself would be estimated to generate: Q1 = $386,400 ; Q2: $533,232 ; Q3: $735,860 ; Q4: $1,015,486 for fiscal year 2015. Expansion and market awareness does make this estimate plausible. Will it stay at a 38% increase quarter over quarter, most likely not.

1/10 of the market cap is a reasonable stretch for the Company to focus on. Which as of 1/16/2014 SQBG's market cap was $373,346,400. A market cap of $37,334,600 would bring an estimated pps to Bitzio to .0267. This is a fare valuation of the company IMO and the same as an estimated valuation that I have based on Bitzio recently based on their current revenue stream. If current revenue increases as stated above the pps should be able to reach your estimate of .20+.



Current (12 month Forward Looking)Valuation of BTZO:

$207,804(x3 months per quarter) = $623,412 (x4 quarters) = $2,493,648 (annual revenue projection)

$2,493,648 x 76.56% (current net profit margin) = $1,909,137

$1,909,137 (net profit)/ 1,394,067,387 (current O/S as of latest 10q/a)

.001369(eps) X 17.8 P/E(Asset Management average) = $0.0243 pps valuation

Link to Industry P/E Average:
http://biz.yahoo.com/p/422conameu.html

Bitzio is undervalued no matter how you look at it. How often do you find a trips stock that actually produces a good revenue stream. Not only produces the revenue but has a huge profit margin such as 76.56%.

A BUY rating for Bitzio that is for sure. Bitzio should be on evryones watch list for the next Quarter results. If we don't move by then, then Bitzio will most certainly move when the results come out.

GLTA

Disclaimer: I have no professional experience in valuating companies nor do I have any professional experience in the stock market. You should not make any trade based on my "assumptions" of a company that I am Invested in. My ideas are most likely biased as I am currently invested in Bitzio. All posts are for Entertainment Purposes only. Always do your own DD and never trade on someone else's valuation or opinion of a company