Vertical Branding Inc.(fka VBDG)

[riskanalyst]

I've converted to the dark side over the last two days. Hopefully that's a darker shade of green. Made it a 2.5% position, adding 150% from original shares.

I'm in agreement now. Financing problems with growth is not necessarily the worst problem to have. If mgmt does hit their guidance than I guess the risk is priced in at the moment, leaving a good amount of upside. If they seek additional financing outside their receivables financing than margins could be squeezed into low 40's/high 30's. Still good. To meet the lower end of sales guidance they'll need about 25% revenue growth for the last two quarters. They had 15% QtoQ last Q. A 10 fwd PE will be a welcome sight and may be a lot to ask even in this market.