Replies to post #79773 on Bots Inc (BTZI)

[cashbyers]

Les, I always appreciate your feedback, and looking back, I should have clarified my claims more. Let me address your points:

1. I based my overvalued claim on Price to Sales. P/S is a common valuation method for unprofitable companies, such as MCIG, especially compared to most MJ companies in the sector.

-P/S:
Sales: 1.7 mil 2015 revenue +30% growth (reasonable annual estimate for this fiscal year) = 2.21M revenue. I realize there are present values of contracts/revenue streams in play, but this is a conservative estimate based on MCIG history of not executing.

Outstanding shares: 335M + 15% Dilution (reasonable dilution estimate considering the accelerated trend) = 385M

2.21/385 = .0057 .16 Current PPS /.0057 = 28.

Most undervalued companies are <1 Price to Sales or around the same multiples of other similiar stocks in the sector. Although debt is a factor for must companies under 1 unlike MCIG with no toxic debt, 28 is still way to high to consider much more upside fundamentally.

I am unsure how to price in the demand and hype of the current catalysts, but wanted to convey and make investors aware of how much of this "future demand" value has already been priced into the PPS at the current levels.

As for the additional paid in capital:

I do agree with you that my statement about the deficit was misleading and yes some shares where retired, but the bottom-line is that the company is not profitable by 6.8 million. the majority of the paid in capital was common stock issued for operations. With the current cash burn via only 10k net income from operations, there is no way cash from operations, in the near future, will be able to reduce this massive accumulated deficit. Thus, more shares will have to be issued or retired.

Who knows how much preferred shares Paul even has left? I willing to bet he has less than 15M in his pocket (why no renewal to lock these up again?), especially with the increased agency costs that have came from this spike in PPS. Plus, he hasn't been filing/transparent with these share conversions and I gave up trying to puzzle where they all went from the SEC filings. Overall, this "additional paid in capital" is dilutive and has been hurting shareholders for the last few years. Where is the last weeks 10-Q? To claim the dilution has been minimal is partially true, but it has also accelerated.

The bottom line I was stressing with my last post was the there is much more downside to upside as of technical, fundamentals, and current sector price action. I am a man of risk/reward trading, and risk far outweighs the reward with the current chart.

GLTA,

Cash