Replies to post #7084 on Interups Inc (ITUP)

[RealDutch]

Snow, I will answer that one :-)

I don't think net assets tells you much. There are companies with no assets that have billions of dollars in market cap. And there are companies that have billions of dollars in net assets but a market cap of only 10's of millions. There are even companies that have huge value but are not allowed to book the assets under US GAAP (Think oil companies with reserves or land use rights that have to be booked at cost). Or other types of intangible assets.

We do know what the company reported for 20/21. Close to EPS $20 after dilution (based on 16.2M shares). And we also know what a conservative formula for intrinsic value could be. Simply multiply by 10 (representing a growth rate somewhere between 5% and 10% annually). Which could be as much as 100 if the company really grows fast but we are not going to assume that for now.

You can also look at historic numbers as they can be helpful. This stock traded in the $20 - $40 range 5 years ago. At a time when they probably didn't have any earnings or assets (before dilution, based on 6.9M shares). At the other (extreme) end, it traded as low as $1 recently. But that was before they reported EPS $20 for 20/21...

Or you could argue that the stock is worth what you can get for it. In which case it has no value yet. But that is a really silly approach because we know that the new SEC rules governing trading on OTC are really stupid :-) As nobody is even able to buy the stock on the open market.

At least we will have the dividends. You can argue if they deliver here (4 x $0.48 annually) and we use a dividend yield of 10% very conservatively then the stock is worth close to $20. But I don't like that approach personally. But at least it will give you some (rock bottom) value.

Personally I would use $20 x 10 = $200 reflecting the "mental value" as you said. I like that. But it really is each to your own. Or as they say in the US, YOYO (You are On Your Own). It could be much more or much less in a few years from now.

[RealDutch]

I can give you two more reasons why $200 could be close to fair value. Because I know you will criticize me for using a P/E of 10.

1) If I'm not mistaken then the company was about to issue stock for $100/share a year (or 2) ago. That seemed to be the plan at the time. That was before the SPAC's. So you might as well argue that the stock is worth twice as much now.

2) I have my own personal valuation model as you know. When I put in a share price of $200 for ITUP then out comes an overall score (value) of 7.82. What that means is, it is still a good buy at that price. Because a score of 7.5 = a buy and 8.0 = strong buy (in general). And my model accounts for everything, the high potential as well as the substantial risks.

I have always "known" that this is a $100 stock with a $1,000 potential. That is why I was buying the stock for $7 two years ago.

Not a whole lot changes that. Don't make the mistake thinking that Petrejus or me being on board suddenly changes the value. Only our perception changes, not the intrinsic value. Sure, perhaps the probability of success will go up by 5% but then again, the most important thing is that Laxmi is already focused on creating shareholder value. Otherwise they wouldn't be paying cash dividends... so I don't have to teach him that.

[palaypu0406]

Dear Snow,
I apologize to write, Petrejus and RD have been appointed to undertake some massive responsibility and support me to reduce my burden. Time will answer your questions when we go public and unveil the plans which in your terms have not materialized for some companies that you been researching for over 50 years...
But these too gentleman have just put their sleeves up to work for the company with tons of energy that we are blood shedding to unveil the potential ...Let them please work, focus and progress into their roles...

If I have taken them to support me internally, it implies, I have done this with deep guts. In fact I have gone a step ahead and put them into key responsibilities -- one to fully take charge of the WM Asset Distribution and the other to conduct due diligence of the Asset itself prior to its introduction into WM Distribution. Virtually I have made them eyes and ears of the market to answer every bloody asset induction (RD) and every successful WM Distribution (Petrejus). Their successful delivery of their responsibilities will give you (shareholders I mean) nerve breaking response on the value addition each of these WM Assets will add to the book value of ITUP.

Please kindly have patience on them... Let them get into their jobs smoothly... These are not small responsibilities..I have taken a serious bet on them...Not to worry on ITUP... We are surviving... I have given enough reason and explanation for deregistering the company from public... I have given enough reasons and our adopted approach in disintegrating certain of acquisition targets into specific sectoral SPACs and a central WM WM Arm to legally pull in the required investments to fund the acquisitions globally. And I have transparently explained when we will be back on the floor and even explained that we have two options to get back as a listed entity.

Time and patience matters....It is very important that we are allowed time than having gun points to answer curiosity and suspicion. It is not just you but even I am a shareholder of this company and if anyone is losing, I lose it big time.. I am certainly not a lunatic to be working for this company for over 8 years now with not a single share sold on the market and not a penny drawn as compensation (I have converted all of my compensation as my additional stock).... This company, Interups, is not just worth 30 dollars a piece...Its intrinsic value is $500 dollar plus....But give that, this damn company needs time to show the world that it is worth multiples time that dime people have invested into.

Lastly, I started sharing critical and sensitive worksheets with both the new boys... with the solid hope that they will use their energies in a very constructive way.
I always take the example of Coke, Pepsi, McDonalds and KFC - It took years for them to convince the world but today they stand out to be the best leading brands across. To set an empire -- needs time, tons of conviction, guts and resilience to not to loose hope when challenged... Support the efforts if you could and as a shareholder you have every right to ask any question that you may have in your mind about the company... and I have already promised you that i will explain my best in transparency... BUt kindly do not assume, these two new officers in rank, as your grapevine to feed internal information. With lot of hope on them,I have taken them in. Not just them, I was very vocal in telling, i consider all of you as an extended family and my thinking on each of you is beyond these few shares you or anyone might have bought in the market with an assumed speculative gain. Let that spirit live please....It is not just those few shares that matter anymore... Market purchase is hardly 323,000 shares plus for ITUP. Rest all is internally held. It is not even 5% that exists outside. We are beyond this market play...I have given RD and Petrejus roles in WM Arm itself...Their successful role progress answers your 50 years of suspicion but not the past that haunted you with no merit.

And I was also very transparent in explainint the purpose of dividend payout...what material cash flow affect it means and why we are paying out. We have declared 48 cents vs 25 cents expectation. As this will address principal amount for initial investors and at least 1/5 - 1/10 of market speculation done by market participants... If the cost of investment nets to zero, anything that works above that zero is a continuous plus for the shareholder....

I am not sure how many shares you hold SNOW but anytime that you would like to exit, please let me know with 30 days notice, I will buy them over. But let there not be discussions comparing us to the world of those 999 companies you might have seen resulting nothing... Here our families and shadows are even working for the success of this company 24x7x365 days...we just work placing tons of confidence in what we do...and we cannot waste our time, everytime attempting to convince the wrong mind.. And this includes the new war force... Let them get into their respective jobs please...These jobs are as equally important to them as much as they are important to the company.

Pardon my writing but I have seen this language from you a few times and the spirit within me prompted me to pen these words....

We will be alright...and you will gain confidence in us ....Allow us some time please...
Pardon my english,

Laxmi Prasad