5BARz International Inc. (fka BARZ)

[zerosum]

Hey so let's play with some numbers here. I want to try and guess the minimum 5bars will make in profits over the next year or 2, back of the envelope math, based on this 5M unit deal alone.

Remember that we don't know how much the Fuji will sell for, or how much it will generate in revenue for 5barz. That said, we absolutely know that they have a commitment from the ISP to deploy a minimum of 5 million 5BARz Wi-Fi routers over a period of five years:

The agreement stipulates a commitment by the top ISP to deploy a minimum of 5 million 5BARz Wi-Fi routers over a period of five years. 5BARz India secured this order for its advanced Wi-Fi experience suite, which is delivered through its next generation router, 5BARz Fuji, as well as its 5BARz Smart Experience connectivity software. The Company did not disclose the specific terms of the agreement honoring confidentiality.

So, let's make some assumptions and have some fun. They got a deal for a min of 5 million in 5 years, so let's assume they deploy 1 million per year for 5 years. Let's also say they only make (profit) $30.00 (I actually think they could make up to $200, but I want to be safe and conservative) per router the first year it's in service. In theory they could sell these to the ISP outright, or collect payment over time. I will assume they will collect payment for each router within the first year of it being deployed. That's fair and conservative, right?

OK so...let me know if my numbers are right here:

$30.00 per unit X 1,000,000 units = $30,000,000 in revenues.

We have to subtract CGS and all the other company expenses and let's take a stab and call that $10,000,000.00. I'm assuming CGS will be less than network extender due to scale with AXIS but I'm just guessing here.

$30,000,000.00 Revs - $10,000,000 = $20,000,000 in net profit per year per 1 million routers deployed.

$20,000,000.00 -/- 400,000,000 shares = .05 EPS x 40 to 60 multiple and were looking at a $2.00 to $3.00 share price??

Even if we bump up the costs/expenses to half of revenue in case they have to pay some lawsuits, lets call it $15,000,000 in net profit hits the bottom line and then were looking at

$15,000,000.00 -/- 400,000,000 shares = .0375 EPS x 40 to 60 multiple and were looking at a $1.50 to $2.25 share price??

I think this is being pretty darn conservative too. What if they make up to $50.00 per unit? And this is not including the network extender business either! And this stock is now at .077? Can someone please take me down from cloud 9 because this looks too damn good. I'm sure some will say they will dilute more, but I assumed 400M outstanding shares which is a good chunk more than what is out there now. I suppose if it's 500M that would damper it a little, but not much! The litigation I don't think will have a major material impact on earnings. Either way I think we are looking at a multiple dollar stock at the bare minimum.

What does everyone else think?