What kind of potential does 5BARz stock have?
Let's just consider India. Studies in India indicate that somewhere around 46% of the over 900 million telecom subscribers are dissatisfied with their current service. Close to 6% of all subscribers leave their current provider to go to a competitor every month. That "churn" is a major expense. Then add in the "dropped call" fines that are scheduled to begin in a couple of days and you have a nightmare scenario for India's mobile telecom companies. All of these problems are the result of the cellular networks not being able to build their infrastructure fast enough to keep up with the exploding use of mobile devices in India over the last 15 years or so. "On the global stage, India saw the fastest growth in new mobile-phone connections with 18 million net additions in the third quarter of 2014". Not only is it expensive to continually expand the network, but sometimes it is nearly impossible to get new cellular base tower locations approved or to find enough bandwidth.
The 5BARz "Network Extender" can help solve many of these problems. Better yet, the unit can pay for itself very quickly by significantly increasing data income per cellular network tower.
So, how might the numbers shake out for 5BARz investors? Currently there are hundreds of millions of dissatisfied customers in India. Each 5BARz unit will only "extend" the cellular network into a 4000 square foot area. That means that 10's of millions of units may ultimately be needed to solve the network problems. Let us see what selling just 1 million units might do for our stock price.
1 million units @ $200 per unit equals $200 million in gross revenues
gross profit margins are expected to be around 75% yielding $150 million in gross profit
if 20% of the subsidiary in India is sold for $20 million then 5BARz parent company will receive 80% of the $150 million in gross profit or $120 million
as a pure guess I'm going to assign another 30% for SG&A as well as taxes to produce net income of $84 million
I'm going to use a fully diluted share count of 350,000,000. This assumes everything that can be converted is converted. This is just a ballpark number. Then $84,000,000 divided by 350,000,000 or $.24 is the earnings per share.
If we use a very conservative PE multiple for an emerging technology stock with explosive growth potential of say 25 then our stock should sell at 25 x $.24 or $6 per share.
It will probably take a couple of years to get to 1 million units in sales, but the forward looking market price of our stock will start to anticipate that event very soon. As the size of our working capital expands ($20,000,000 for 20% of the subsidiary in India), sales will ramp up very quickly. And, remember 1 million units is just a small start in just one country.
5BARz's "Network Extender" may become the product that every network operator must have to remain competitive.
--Originally posted by As I See It.
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