ORLANDO, Florida, March 9, 2007 (PRIME NEWSWIRE) -- 2007-RedChip Companies, Inc., announced today that the latest edition of CEO Dave Gentry's RedChip Blog is available now at www.RedChip.com.
Below are some excerpts from today's blog:
"You've got to hand it to the merchant bankers behind the AeroGrow (OTCBB:AGWI) deal. They executed a brilliant reverse merger and a funding at $5.00 raising over $8 million for the Company. It's only been trading since January, 2007. The stock closed at $6.30 on Thursday, down 3 percent. The stock is currently trading 25 x book value (mrq) and 9 x sales (ttm). The Company reported a net loss of (8,389,893) on $6.7 million in revenues for the nine months ended December 31, 2006. They sell a dirt-free aeroponic kit, the AeroGarden(tm), that grows "fresh herbs, salad greens, tomatoes, chili peppers, strawberries and more indoors, year-round, so simply and easily that no green thumb is required." Revolutionary indeed. The technology has been praised in major magazines and talk-shows. Williams- Sonoma(r) is now carrying the AeroGarden(tm); the testimonials from chefs and housewives are overwhelmingly positive. They have sold over 100,000 units of the AeroGarden(tm) in their first year of commercialization at $149.00 each. And they have a built-in recurring revenue stream selling plant seeds to buyers of their AeroGardens(tm).
But the Company is burning cash faster than they can package and ship their dirt-less indoor tomato making machines. AeroGrow spent $6.5 million operating their company for the nine months ended December 31, 2006. No one-time non-cash charges here, just $0.90 per share in losses. In this case, it takes a lot of green to make greens. Can this company make money selling revolutionary salad gardens? The verdict is still out.
Now, let's compare AeroGrow with Vertical Branding (OTC BB: VBDG) a consumer products, branding, marketing, and distribution company. Like AGWI, Vertical Branding uses television, online media, print advertising as well as traditional retail distribution to market its products. And VBDG, like AGWI also has a mega-hit product. It's called the Hercules Hook(tm), used for hanging pictures, shelves, and just about anything. It's a twisted wiry piece of art that can hold up to 75 pounds without putting a nail in the wall. That's right, while AeroGrow's hit product uses "no dirt," Vertical Branding's hit product uses "no nails." One of the largest retailers in the world recently placed a $2 million order for this hot-selling picture hanger.
The Company sold 100,000 units in the month of January alone. Now homemakers can hang their heaviest pictures in seconds, giving them more time to enjoy their home grown aeroponic strawberries. Life is good in 21st century America. Both AWGI and VBDG's products have been featured on Good Morning America and praised as a homemaker's dream. The Hercules Hook(tm) received its highest award, an "A" rating.
Before I continue, let's make sure I am properly disclosed. Vertical Branding is a RedChip Visibility client. To view disclosures please visit: http://www.redchip.com/visibility/investor.asp?symbol=VBDG&show=disclaimer. To view the RedChip Report, please visit: http://www.redchip.com/visibility/investor.asp?symbol=VBDG. Am I biased? You bet I am. But probably not anymore biased than the investor relations firm who represented NutriSystem Inc. (NASDAQ GS: NTRI) in 2002 when the stock was trading at $0.67. The stock appreciated to $56.00 in just three years. That rocket-ship changed a lot of a lot of lives and made the world a better place for a lot of people.
To read the RedChip Blog in its entirety please visit: http://www.redchip.com/independent/blog.asp?from=home_ad.
About RedChip Companies, Inc.
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