ORLANDO, Fla., June 6, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc. announced that it has issued a Vertical Branding Inc. (OTCBB:VBDG) research update.
Tony Telan, MBA, RedChip Research Analyst, wrote in the report:
"First quarter results, notably EBITDA $1.3 million and net income $492,000, affirm our position that the Company is executing well on its business model and will continue to experience robust growth. The first quarter of 2007 marks the Company's second consecutive quarterly profit. Earnings per share for the quarter were $0.02 compared to a loss of $0.07 per share for the same quarter of 2006.
We have revised our valuation model, giving the Company a multiple of 4 x FY 2007 estimated sales of $39.8 million, arriving at a share price of $7.12. We applied a 32x forward P/E multiple, which is the average P/E of our industry comparisons. Based on a 32x FY 2007 estimated fully diluted EPS of $0.17, we arrived at a price of $5.44. We took an average and established a 12 month target price of $6.28 and then discounted this target price by 25 percent yielding a 12 new month price-target of $4.71.
In summary, we believe that VBDG offers a compelling investment opportunity. As detailed above, we expect the Company to deliver on our estimated 2007 revenue and earnings projections. Our twelve month price target of $4.71 is significantly higher than the current price and offers patient investors an opportunity for triple digit gains. We have met with management several times over the last six months and it is clear that they are a focused, disciplined team intent on delivering consistent earnings and revenue growth, and becoming a major player in the direct consumer marketing and branding distribution industry."
To receive a complimentary copy of the RedChip Visibility research update for VBDG, please visit: http://www.redchip.com/visibility/about.asp?page=requestVBDG_Q1_2007.
About RedChip Companies, Inc.
RedChip Companies is an international small-cap research and financial public relations firm with offices in Beijing and Orlando and affiliates in New York and San Diego. RedChip delivers measurable results for its clients through its extensive international market expertise as well as its comprehensive platform of products: RedChip Research(tm), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences held throughout the United States, and RedChip Radio(tm). To learn more about RedChip's products and services please visit:
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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.