Replies to post #108908 on Bots Inc (BTZI)

[lesgetrich]

Since BTZI owns 49% of OBTX, it would use the Equity Method for accounting for the investment. That means if OBTX realizes $6,020,000 profit as projected, BTZI would claim 49% of that, or $2,949,800 as income and add that amount to its OBTX asset value.

[grorate25]

As always, thanks for your analysis. So far today, the news isn’t helping either company. For Btzi, they need to come out with some good generated news from receiving a P.O., money from ATM use agreement, or something. I really don’t think ppl like me will put any new money into btzi and continue to hope something develops. Non $ generating PRs are not helping and actually hurt the directors integrity, as we are all waiting and watching for something with teeth. Anyway, it’s always nice hearing from you, as we both are growing old (been about 6 years now) watching this company.

[lesgetrich]

I just noticed a significant typo on this post. I meant to say...

a price target in the range of roughly $19 to $300 is rational for OBTX.

...not...

a price target in the range of roughly $19 to $300 is rational for BTZI.

[Master-of-Disaster]

Losing faith? Did we miss the price target in the range of roughly $19 to $300 is rational for BTZI?

I mean it is October and all? Or is this yet another loft prediction that will not come to pass?

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.