SwingTrade Member Forum

[MikeDDKing]

VBDG thoughts....

Here are my latest thoughts on VBDG....

Q3 was an improvement over Q2. I expect Q4 to be a further improvement over Q3 with earnings in the $0.01/share ballpark and possibly higher. I think Q1 will be a further improvement beyond Q4.

Here are the reasons I think VBDG will continue to have improving quarters:

1. Retail sales have been growing tremendously in 2008 while transactional sales slowed. The drop in transactional sales was consciously chosen by VBDG due to escalating advertising rates. Because of the massive drop in advertising rates, transactional sales will rebound in a huge way while retail sales will continue to move higher. This will grow VBDG's revenue and earnings.

2. Margins will be improving in Q4 and beyond because of the drop in oil prices and the increase in value of the US dollar.

3. VBDG has been undertaking efforts to further reduce costs which will improve earnings.

4. Sales of MyPlace are going like gangbusters in Q4. VBDG just announced a $1M Q4 reorder presumably from Bed, Bath, and Beyond.

5. A massive number new products are being introduced. Here is a list of new products that VBDG has specifically named.

- Heated Ice Scraper (Q4 introduction) 
 - MyPlace Cozy (Q1 introduction) 
 - Genius Air (web site running already!) 
 - Nicer Dicer (2009) 
 - ECOBALLS -| 
 - EcoSavR   |- These are being tested already 
 - Detect   -| 
 - MyPlace Cozy (Q1 introduction) 
 - MyPlace Couch Potato 
 - MyPlace Ultra 

More DD can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=10478

Mike