Replies to post #31674 on SPOOZ Inc (SPZI)

[Gbathat]

please note i have not yet considered the scenario #3 of buying spzi, holding until 141 goes public, then selling spzi and buying 141... that one gets really complicated, but I will do my best to address it later. If anyone beats me to it, I certainly won't complain;)

okay, back to work i go... hope everyone has a great weekend.

[Gmenfan]

Gbathat ..... Thanks for the estimates. I'm know you went through quite an effort compiling your estimates and it appreciated.

Based on your estimates, which in turn are based on some assumptions, it appears that more Spooz is the better of the two "buys" right now. More bang for the buck so to speak.

Purely based on the current PPS and the estimated PPS of 141 a small gain in share price of SPZI would yield a higher return than 141 for the same initial dollar amount invested even stay long, which I am.

Spooz appears to have many irons in the fire so to speak where 141 is somewhat limited in their diversity.

[mtncabin]

Nice post on an important question. I have been thinking about this opportunity and I appreciate your work. We all have a variety of assumptions on this question; I am wondering if a market cap valuation model might help. An earier model for SPZI that I think "the professor" developed was 10 times revenue and had some acceptance on the Board. I think that an update to that model would look like 10 times SPZI revenues plus 120M times 141 share price (values the 141 change as an asset and doesn't have a multipier).

The next question would be to develop a 141 market cap valuation model...a question for the Board, would this look similiar to the 10 times revenue model that seem to get acceptance on the Board for SPZI before 141 was announced.

Once we know the share structure for 141 Capital, we can use these models to develop our estimates.

These are all my opinions...I appreciate constructive help on this opportunity from the Board.

A sample Calulation using the above models to simply demonstate their use is:

Assumptions:
SPZI Revenues from 10,000 Screens at $6000/screen/yr equals $60M. plus 1,5M from 141 Licences plus 7% of 141 net profits. Own 120 M shares of 141 Capital, and have an O/S of 1385M shares.
141 Capital have revenues of $10M netting $8M after costs and an O/S shares of 360M,
Calculations using the above models are:

141 Capital
Market Cap equals 10 time revenue 10 time $10M equal 100M
Price per share equals $100M/360M equals $0.28/sh
7% payment to Spzi equals 0.07 time 8M equals 0.5M
SPZI
Market Cap equals 10 times ($60M + $1.5M + $0.5M) equals $620M
141 asset value equals 120M times $0.28 equals $43M
SPZI price/share equals ($620M + $43M)/1385 equals $0.48/share



The assumptions are only to demonstrate the models!!! Constructive thoughts on the models are appreciated.