ORLANDO, Fla., Feb. 15, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, announced that they have initiated research on Vertical Branding Inc. (OTCBB:VBDG).
Lisa Springer, MBA, CFA, RedChip Senior Research Analyst, wrote in the report:
"The best indicator of Vertical Branding's significant progress is quarterly operating results. September 2006 quarter direct response revenues were 215 percent higher than the same quarter one year ago, and 80 percent higher than June quarter segment revenues.
"Preliminary fourth quarter and full-year 2006 results indicate continued robust growth. The Company expects to report consolidated revenues of approximately $11 million in the 2006 fourth quarter, which represents a 654 percent increase over the 2005 fourth quarter and over 100 percent sequential quarterly growth. Direct response revenues are forecast to rise 367 percent in the 2006 fourth quarter compared to same quarter in 2005 to approximately $6.9 million and retail segment revenues are expected to increase to $3.9 million in the December quarter from $1.2 million in the September quarter. Vertical Branding anticipates full year 2006 revenues of approximately $23.4 million, up 188 percent from revenues of $8.1 million in 2005.
"At a recent price of $0.70, Vertical Branding shares are trading at a price that is less than one time estimated 2006 revenues. We think Vertical Branding's multi-channel distribution, clearly articulated business strategies, and strong quarter-over-quarter growth warrant a higher valuation that is more in-line with peer levels. As a result, we are rating these shares a 'Buy' and establishing a $3.20 one-year price target, based on a P/S multiple of three times estimated 2006 revenues."
To receive a complimentary copy of the RedChip Visibility initial research for VBDG, please visit: http://www.redchip.com/visibility/about.asp?page=requestVBDG_initial.
About RedChip Visibility(tm)
RedChip Research, a division of RedChip Companies Inc., writes fundamental research on small-cap companies. RedChip's success has been documented in Forbes, Barron's and the Wall Street Journal. RedChip Visibility(tm) provides small-cap companies' access to both professional and individual small-cap investors by holding conferences throughout the United States, producing online corporate visibility programs, and writing company sponsored research.
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RedChip Visibility Research Disclosure
VBDG paid RedChip Visibility $36,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., and the Aurelius Consulting Group Inc., in a joint marketing agreement, have been contracted by Vertical Branding, Inc. to increase investor awareness of VBDG to the small-cap equity community. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives a monthly fee of $7,500 cash and $7,500 of shares of Rule 144 stock per month for investor relations services.