Vertical Branding Inc. reported strong Q2 results with revenues increasing 286% from $2.3 million in Q2 2006 to $8.6 million, while gross margins also improved. Red Chips believes that the company’s revenue growth and margin expansion has been caused by strong sales of its products.
In Agust of this year, Vertical Branding announced a strategic alliance with a leading international sales and distribution company to market and distribute its ZORBEEZ brand product line in over 40 countries around the globe. The agreement is an example of the company’s strategy to utilize multiple channels of distribution.
In RedChip’s analyst report, the research firm stated, “VBDG has demonstrated its ability to successfully cultivate and distribute products through various channels and continues to deliver solid top and bottom line growth. Sound fundamentals, a savvy management team, and current price levels make VBDG a compelling investment opportunity. We are maintaining a “Buy” rating and assigning a new twelve month price target of $1.70 based on 1x trailing twelve months revenues which is more in line with the peer group.
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