I've been crunching some numbers to get a feel for what IOT’s...

I've been crunching some numbers to get a feel for what IOT’s market cap could be worth.

Is it possible that IOT can sell 1,000 or 2,000 Roam-e selfie drones in Australia over a 12 month period? No you say! Well let’s say 600 selfie drones. Surely they’ll be able to sell 600 throughout the whole of Australia over a 12 month period. Now, what some people are forgetting is that the Roam-e is not only for sale in Australia but throughout the world. The world’s population is over 7,000 million people. If every 24 million people buy 600 Roam-e drones, then 7,000 / 24 * 600 = 175,000 sales in one year.

IOT has just increased the price of the Roam-e by $50USD which is $68AUD. The previous price must have had a profit margin in it so their profit on each sale must be higher than $68AUD. It could easily be a $100AUD profit per unit.

175,000 * $100AUD = $17.5 million AUD.

Now if a company is making a $17.5 million EBITDA then surely a market cap of 100 million or 200 million is not excessive. This is coming off what looks like a conservative uptake estimate as well. What if the uptake rate is multiples of this? The sky's the limit.

As an example, look at EDE, its present market cap is over $300 million. It’s years from generating revenue and it’s completely unknown what revenues it will generate.

Now the company in its own words has said:

• The Roam-e product has been reported in over 100 media stories around the world
• There is extraordinarily strong interest in the Roam-e selfie drone

To me, if the Roam-e functions as specified even a fairly low take up of the drone on a world wide basis should equate to considerable profits to IOT. I think this stock has got considerably further to run. I’m looking forward to the Roam-e presentation that Max Markson is due to release.