SPOOZ Inc (SPZI)

[stervc]

Peeved, with your SPZI Valuation...

The SPZI valuation you provided from the PR released this past Friday was an outstanding summation although a little conservative in my opinion. Normally I like using a 25% margin for Net Profit too, but from further researching I have discovered that the Net Profit Margin for SPZI is now over 50% from the reduction in Expenses that was just PR-ed. I recommend shareholders to call the company to get further confirmation of this.

This means below from the PR annually considering 1,200 installations of SpoozToolz at a contracted price of $400 per month per installation:
http://biz.yahoo.com/prnews/081010/aqf505.html?.v=25

1200 x $400 = $480,000 per month

$480,000 per month x 12 months = $5,760,000 Annually

Again, from further researching I have discovered that the Net Profit Margin for SPZI is now over 50% from the reduction in Expenses that was just PR-ed.

$5,760,000 x .50 Net Profit Margin = $2,880,000 Net Income

Within the Nevada SOS, the SPZI Authorized Shares (AS) is still 5,000,000,000 shares:
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/corpActions.aspx?lx8nvq=zQzOVoNHbqLvNhFmqPsPLA%253d%253d&CorpName=SPOOZ%2c+INC

I will assume that the Outstanding Shares (OS) have been maxed out to be 5,000,000,000 shares as a worst case scenario to determine the Earnings Per Share (EPS) below:

$,2,880,000 ÷ 5,000,000,000 (OS) = 0.000576 EPS

The PE Ratio is the Price to Earnings Ratio that reflects the growth rate of similar stocks trading within a certain Industry and/or Sector within the market. I will use as a conservative PE Ratio of 12 to reflect the growth rate of which the Industry and/or Sector that SPZI would trade as a minimum:

.000576 EPS x 12 Conservative PE Ratio = .0069 Per Share

This is where SPZI should be currently valued at in my opinion as a minimum fundamental valuation given that recent PR released this past Friday. Even if you used a 25% Net Profit Margin, then that would cut the .0069 per share price in half to reflect a SPZI worth of .0035 per share which is still a far cry from where we are trading at now. As more contracts are announced, this per share valuation should increase exponentially in my opinion.

From a phone call I had with Bloomberg, I am confident that this contract that we are referring to is the Bloomberg contract. I recommend shareholders call the company to verify this too.

v/r
Sterling




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