Bots Inc (BTZI)

[lesgetrich]

There's nothing magical about $.25/share. Ultimately, the pps depends on what people think is the earnings potential of the company. Their estimate of this earnings potential is periodically verified or proven wrong by the company's financials.

For about the past year, BTZI shareholders have been giving the company the benefit of the doubt and, in light of its restructuring, have been treating it more like a startup with no revenue than an established company. At some point, however, they'll have to produce some revenue and positive earnings to maintain their pps.

The recent price spike seems to be driven by the patent announcement. If we assume my analysis of revenue in my post # 106827 is correct...

BTZI post # 106827

BTZI should realize about $15,000,000 in revenue the first year the patent is enforced with an additional $10,000,000 in subsequent annual revenue. Except for legal fees, these revenues would come at virtually no cost to Bots, and will grow each year as new ATM's are installed. There's also the potential that, at some point, all existing US ATM's will need to incorporate cryptocurrency transactions. This would make them all subject to the patent. However we won't get ahead of ourselves for now.

Let's just conservatively assume that BTZI could bring in $10,000,000/yr in earnings for now. I like to estimate what I refer to as a rational pps range using the following technique...

Using the NYU Stern School analysis of Price/Earnings (P/E) Ratios by Industry, I theorize that BTZI could be categorized under either Financial Services, which has a forward P/E of 16.93x or Software (System & Application) with a forward PE of 76.82x. BTZI currently (as of yesterday) has an OS count of 771,874,596 shares. Using these assumptions, we can estimate a rational price range as follows...

$10,000,000 earnings / 771,874,596 shares OS = $.013 Earnings Per Share (EPS)

$.013 EPS x 16.93 = $.22/share pps to

$.013 EPS x 76.82 = $1.00/share pps

Consequently, based on these assumptions, a price target in the range of $.22 to $1.00 is rational for BTZI. This doesn't mean that the company will hit either of these targets, only that they are possible if all the assumptions are met. Keep these estimates in mind and see if they're borne out by further facts about the company (e.g. future financials) as they come in.