Bots Inc (BTZI)

[lesgetrich]

Based on today's news, we can do some rational price calculations.

The company, over the past four months, has operated at a roughly 43% profit margin. ($2.1M profit/$4.8M revenue)

Today's PR projects annual revenue for the current year at $14 million

$14,000,000 x 43% = $6,020,000 profit/earnings

$6,020,000 Earnings / 6,144,125 Outstanding Shares (OS) = $.98 Earnings Per Share (EPS)

Using the NYU Stern School analysis of Price/Earnings (P/E) Ratios by Industry, I theorize that OBTX could be categorized under either Financial Services, which has a forward Price/Earnings (P/E) ratio of 19.35x or Software (System & Application) with a forward PE of 305.13x.

$.98 EPS x 19.35 = $18.96/share pps to

$.98 EPS x 305.13 = $299.02/share pps

Consequently, based on these assumptions, a price target in the range of roughly $19 to $300 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. In any event, this suggests that OBTX is severely undervalued given today's PR. 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.