5BARz International Inc. (fka BARZ)

[zerosum]

Here are my thoughts on the questions you asked, although I think AS I See It's opinion would also be valuable here. Below is my take.

1. If you are not an OTC trader the volume might look light, but I have watched many OTC stocks trade and the ones around .05 trade with lighter volume in general. Aside from the recent days with lighter volume, IMO 5BARZ has always traded with very good volume for a low priced security like this. To add to that, given the OS count basically no shares are being traded one way or the other. Stocks like this can often go days or weeks with little to no volume. It's not common for 5BARZ stock but it happens.

My opinion as to why investors might not see what a solid job the CEO has just done for 5BARZ shareholders is this:

The story was 5BARZ was going to sell 20% of the 5BARZ wholly owned Indian Subsidiary for approximately $20,000,000 in cash in order to go into production/manufacturing. That would have been a large sum of cash to take in, and a big boon on valuation (upward) and added an embedded put underneath valuation for at least .25 IMO. On the flip side we as shareholders would have sold off 20% of all that future income and growth from that subsidiary and as a result that transaction would have been dilutive to existing 5barz shareholders. Because the company went in the direction of getting a line of credit from the manufacturer, 5BARZ now KEEPS 100% of the Indian Subsidiary (and 100% of it's future revenues & growth), and the transaction as a result was NOT DILUTIVE to 5BARZ shareholders. However, 5BARZ did not receive the $20,000,000 in cold hard cash, and m a y b e some shareholders might be disappointed by that fact, although really no shares have traded imo relatively speaking.

But this deal is WAY better for shareholders--full stop. Not dilutive, lower cost of capital, and the ability to manufacture as many units as 5BARZ customers demand them - on demand. It's a great deal and imo 5BARZ shareholders should be applauding this move, and honestly I'm surprised we are not seeing the stock bid up substantially given the 5 million unit order on tap and their relationship with the highest quality Telecom company in the world: VodaFone.

And in their most recent PR the manufacturer hinted that even more units could be ordered.

Commenting on the alliance, Ramesh Kannan, Managing Director, Kaynes India Pvt. Ltd. said, “5BARz has a suite of very innovative cutting-edge products. It will be our privilege to manufacture such highly evolved technologies and products from our manufacturing house here in India. ‘ROVR’ is a product which has several times the opportunity over and above the 5 million commitment it has already secured from a leading ISP."

2. I am figuring the deal with the telco to be a $200mil deal over 5 years @ $40 per unit..this is probably conservative?
I believe after all is calculated and done, this deal will put 5barz at about .06 EPS. IMO, this company should be trading at $1 by the end of the year, and that would be a very conservative P/E for tech market of this potential.

TOTALLY agree with this--and it is exactly for this reason that I am staying long despite what the stock does. I am also watching carefully and could easily double my position if I wanted to. IMO this stock should see .50 in short order, but it may take a little time for the word to spread. But imo this will be happening. If I have to be patient for a little while, so be it. IMO this will be worth the wait and is a great investment with great management. If there were any doubts of the CEO's capabilities before this move, then he just established his credibility with this deal. Fantastic job. Stocks go up and down, and I would only look at ANY lower prices as an opportunity.

I'm pretty sure that the CEO is getting advice from his BOD, that being Gil Amelio and Finnis Connor and the rest as to how exactly to go about all of this; dealing with VodaFone & Bharti Airtel, the filling of the orders, manufacturing, etc. IMO it's won't be long before 5BARZ starts making some serious cash from all of this, along with a heavy PR campaign and stock roadshow which will likely send the stock soaring.

This is my largest OTC position for a reason.