5BARz International Inc. (fka BARZ)

[As I See It]

Criticism and skepticism are useful elements of a healthy dialogue concerning investments. However, they are only useful if they don't misrepresent the facts.

From icahn4:

So a video is put out from March 2013 which shows exactly what they have not done.

The video you are referencing was made May 28th 2014 at the SeeThruEquities 3rd Annual MicroCap Conference, more than 1 year after your claim. This detail is important because it throws off your entire timeline for events in the rest of your post.

More from icahn4:

yes Daniel Bland states they will have 200 million units sold by end of 2015 to first quarter 2016

What he actually said was that he believed that they could sell 200 million devices within the next 2 to 3 years, but only 10's of thousands of devices in the first year. Three years from May 2014 would place us in May of 2017 for that guesstimate, not the end of this year or 1st qtr. 2016 like you claim. To be fair, his forecast was still overly optimistic. It is clear that 5BARz management expected the process of securing the first order to more closely follow the end of successful Beta Testing in the 4th qtr. of 2014. What they thought would take a couple of months has taken more than 10 months. However, if you believe them, they have now cleared that most important hurdle. They now have that first and second order. Even if we were to greatly reduced expectations, the numbers can still be staggering. Selling 10 million units in the third year @ $200 each would produce net revenues of 2 billion dollars. That is billion with a "b". Gross margins are expected to be around 75% potentially yielding gross profits of 1.5 billion dollars. Subtract out some revenue sharing with subsidiaries, taxes, SG&A and you still could net about 1 billion dollars or approx. $3 per share. Even a conservative PE (for an emerging technology company) of 20 gives you a share price of $60 in a few years. That is why longs are hanging around.

More from icahn4:

Daniel Bland is very excited about the Mexican market and the upcoming sales, oh yeah thats right they already shipped to Mexico in December 2014 and in January 2015 there PR guy said Mexico has been put on the back burner. Where are the Auto units that would be sold to the public, Daniel Bland states it will be released in January 2014.

Because the initial order in India has taken longer than expected, money has been very tight at 5BARZ. That lack of money has forced them to push back most of their plans. Out of necessity, most of the company's resources have been focused on the highest priority opportunity. That priority is the Network Extender product in India. I believe that once they complete the $20 million financing through Axis Capital we will see everything begin to accelerate.

Unfortunately for you, because of the priority you have placed on the Road Warrior product, those sales in Mexico are far down the list of priorities at 5BARz. So I guess you will be able to post criticisms for that failure over and over and over and over again for the foreseeable future.

I have a question for you icahn4. Is Dr. Gil Amelio lying when he says:

Dr. Gil Amelio, Chairman of 5BARz International, stated, “A recognized leader in the global telecommunications industry is adopting our product, and having them be the first in the industry to adopt our transformative product is very gratifying. I look forward to what we believe will be a rapidly growing adoption of the 5BARz® Network Extender throughout the global telecommunications industry in the coming months and years as the industry strives to meaningfully enhance user experience.”

Is Samartha Nagabhushanam lying when he says:

Samartha Nagabhushanam, 5BARz India CEO, stated, “We are extremely excited to be working on the commercialization of our revolutionary 5BARz® Network Extender in India. Currently, we are in the process of delivering the devices against our first set of purchase orders. We believe the 5BARz® Network Extender will provide an improved indoor user experience with mobile devices in areas in the network that have proven challenging in the past. This is a great beginning for the company.”

Is Dr S. Subramanian lying when he says:

Axis Capital Ltd. Investment Banking Managing Director, Dr. S. Subramanian stated, “The 2nd annual Emerging Champions Conclave 2015 is great opportunity to showcase some of the innovative Indian companies and are excited that 5BARz India will be presenting at this year’s conference. Now that 5BARz India has begun commercial rollout in India, Axis Capital is now ready to initiate our fund raising efforts.”

One final thought. In another video Mr Bland stated that the "Beta Test" of 5BARz devices in India was initially done with three companies. Those companies were Vodaphone, AirTel/Bharti, and Idea. Anyone want to wager a guess on who the first two companies to give orders to 5BARz were?