NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by OTCStockReview.com.
ATLANTA, April 26, 2005 (PRIMEZONE) -- We have been getting a lot of requests for small-cap trading ideas for the impending summer rally. Considering that the Dow has bounced off of 10,000 a couple of times, and the NASDAQ has bounced off of 1900, it could be time to start looking. Interactive Brand Development (Pink Sheets:IBDI) has been in oversold territory since getting delisted from the AMEX earlier this year. Technically, the stock has formed a double bottom. The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.
Interactive Brand Development (Pink Sheets:IBDI) could be the turnaround play of the year. One of the worst performing stocks on the AMEX in 2004, IBDI can now be found trading in the Pink Sheets. Interactive Brand Development (Pink Sheets:IBDI) has restructured itself in to a digital media company that owns and operates a P2P Payment Network used to cross sell high margin premium content and interactive services to their user community and to broadband enabled homes worldwide. Their interests include household names such as Penthouse, Internet Billing Company (iBill), XTV Networks, gkard, and iBidUSA.com.
Additionally, IBDI owns 35% of Penthouse Media Group (PMGI), publisher of Penthouse magazine. Marc Bell and Daniel Staton will manage and operate PMGI. Mr. Bell served as Chairman and CEO of Globix Corporation, a publicly traded ISP. Dan Staton founded the forerunner of Duke Realty Investments, Inc. (NYSE:DRE) and serves on the Board of Directors of Public Storage (NYSE:PSA). Staton described Penthouse as "hardcore, awful" and has turned it into something edgy, political, "a lot softer." The group has toned down Penthouse's content making it like Playboy (NYSE:PLA) and Maxim while rebuilding the distribution network among retailers to boost circulation. They're also looking to extend the Penthouse brand into cable TV, the Internet, and licensing deals.
Interactive Brand Development (Pink Sheets:IBDI) recently engaged Corporate Revitalization Partners LLC to assist IBD in the management of its subsidiary, Internet Billing Company ("iBill"). CRP has been in the public eye since they were engaged by Management Specialties (AMEX:MSS) on June 20, 2002. MSS stock price, then at $2.45, subsequently rebounded to a recent high of $28.30!
The market tends to emotionally overreact in both directions. The stock had probably traded up a little too quickly to deserve an $8.00 price last year, but has now dropped back down to a very favorable entry level and looks to be oversold.
The stock could be ripe for a bounce because it has now held its current level for a couple of months, and the volume has dropped off significantly. Note the volume bars at the bottom of the chart. They peak when the stock hit its high, and begin dropping off as the volume drops. This volume component tells us the supply from sellers is probably exhausted, and the stock is ready to bounce. In addition, the chart tells us that we are starting to see some buyers coming back in. You can see this in the sharp increase in volume in recent weeks. This could show more evidence of a high probability entry point.
Yesterday IBDI contributed to the turn around picture by announcing a summary of their 10-K. One of the most important parts of the release is that total assets reported for the year end December 2004 are $50,113,435. Total liabilities are $12.2 million, $9.5 million of in connection with the issuance of 5-year, 10% convertible notes, due in September 2009. Total shareholder equity reported from the period ended December 31, 2004 is $37,890,556, leading us to believe that there could be some significant value here.
The purpose of this document is to introduce the reader to OTCStockReview.com and the Interactive Brand Development. This document contains public information about the Companies profiled in this email. The document does not contain all the relevant material information necessary to evaluate the Companies profiled in this report and is not to be considered an offer to buy, sell, hold and/or otherwise trade in the securities of the companies profiled in this email. OTC Stock Review is compensated $5,000 a month, from a third party, to perform investor relations services for Interactive Brand Development. OTC Stock Review, as a result of a contract for services with Interactive Brand Development, shall receive 50,000 restricted IBD common shares, per quarter, as compensation for providing investor relation consulting services. You can view our complete disclaimer at OTCStockReview.com Disclaimer.