Bots Inc (BTZI)

[lesgetrich]

What kind of stock price do you think we will get based upon a revenue of 30 million a year?

No one can ever accurately predict a stock's pps. This is particularly true of OTC stocks which are usually early stage companies with little to no financial track record. What I believe we can calculate is a rational target price based on potential revenue estimates and traditional stock prices for a particular industry.

Bots April 22 PR indicated potential revenue of $20 to $35 million/year just from their ATM patent alone. This doesn't include their Crypto Coin mining operation or mining rig repair. However, you want to know what the price could be based on $30 million/year in revenue.

NYU's Stern School of Business publishes a report which analyzes stocks price/earnings ratio (P/E Ratio) by Industry.

PE Ratio by Sector (US)

I believe that this can be useful in coming up with our rational price. The problem with Bots is that it seems to be a Hybrid company across several industries. Do we categorize it as "Bank (Money Center)" with a current PE of 8.46, or as "Computer Services" (current PE of 45.38), or as "Investments & Asset Management" (current PE of 480.92) or "Software (System & Application)" (current PE of 193.65). Let's go with Software at 193.65 PE and assume that the company has a relatively conservative profit margin of 10% (the profit margin on patent enforcement should be considerably higher). The company currently has 776,874,596 outstanding shares (OS). With those assumptions, a rational pps calculation on $30 million revenue would be as follows...

$30,000,000 x 10% profit = $3,000,000 earnings

$3,000,000 / 776,874,596 OS = $.00386 Earnings Per Share (EPS)

$.00386 EPS x 193.65 PE = $.75/share

Again, this is not a prediction, only an estimate of what could be a rational price target. As you can see, this estimate could change drastically, especially in the case of Bots, depending on how the company is categorized and what net profit margin we use.