SPOOZ Inc (SPZI)

[snow]

I warn that what is stated in the following should not be relied on. I came across it in the link to a recent post. The date was January 17. It may have been a copy from a post on this board some weeks ago.

Lottalead
@lottalead
"$SPZI Good folks just need to focus on the simple math. It’s all been laid out… it’s easy to see.
Let’s review..
Simple math….
$568M in sales x 18% profit margin equals $102,240,000 profit… divide that by the outstanding 5.5B shares equals$.01859 profit per share! Multiply that by an industry standard multiple of 15 and that projects $.27/share.. on just what we know of right now!
It’s really undervalued.."

For one thing I am not aware of contracts of more than 500 million dollars. I am only aware of chicken paw contracts that have a stated value of about 300 million dolars. I have seen no sugar contract so far. (Is it assumed that a sugar contract that was referred to regarding a different company is included?)

What is way worse is the refierence to a profit margin of 18%. This was first published by Mr Park but subsequently corrected by him to gross profit margin. The net profit margin is often a low fraction of the gross profit margin. An alleged standard multiple uld behould be based on net profits and not gross profits. Taxes must be deducted before a multiple is applied. In my view the text I quote is so misleading that it should