Bots Inc (BTZI)

[lesgetrich]

Back on June 7 I estimated that based on the information available at the time, OBTX was extremely undervalued. Updating my post #432 with more current informaton...

Based on the June 7 OBTX PR, we can do some rational price calculations.

The company, during the period from February 1 thru May 31, operated at a roughly 43% profit margin. ($2.1M profit/$4.8M revenue)

The June 7 PR projects annual revenue for the current year at $14 million

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

The OBTX PR on June 14 projected revenue of $2.5 million with a 15% profit ($375,000) from their acquisition of Mercury, Inc.

On June 21 the company announced the acquisition of 832 Energy Technology Consultants projecting another $500,000 revenue at a 50% profit margin ($250,000).

On July 20 they announced their involvment with PulseChain and estimated $50 to 100 million in new earnings (i.e. profit). For my target pps I'll split the difference and use $75 million

Adding up the earnings we get...

$6,020,000 + $375,000 + $250,000 + $75,000,000 = $81,645,000

From my Bots Post #109105 I calculated the number of common shares the company would have if all of the Preferred shares were converted to common shares (which couldn't happen for two years). The total common shares if all preferreds were converted would be 21,459,126 shares

$81,645,000 Earnings / 21,459,126 Outstanding Shares (OS) = $3.80 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.

$3.80 EPS x 19.35 = $73.53/share pps to

$3.80 EPS x 305.13 = $1,159.49/share pps

Using Stern's average PE ratio across all industries of 93.39x we get...

$3.80 EPS x 93.39 = $354.88

Consequently, based on these assumptions, a price target in the range of roughly $73 to $1,160 is rational for OBTX. 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 even today. 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.

Nevertheless, if OBTX reaches $100/share, which seems pretty likely, the value of the Bot's investment would be...

2,500,000 shares x $100 = $250,000,000