Digital Brand Media and Marketing Group Inc (DBMM)

[justcallmeDD]

Those revs on the 10-Q are only for existing operating units. Bitemark is no longer a going concern it looks like (see note 5). This is actually pretty good news that they can find partners who can provide the same thing Bitemark was supposed to do (although it doesn't reflect that well when a recent acquisition, acquired early September 2010, fails to really produce for you).

The three months ended February 28 had a gross margin of about 51%. For the operations that the business decides to carry forward, we have a gross margin of about 86%. I like that realignment, but I would've rather them never have acquired BMC. In all actuality, for the past nine months, the true revenues are about 1.15 million (look in note 2).

All in all, I had hoped for more, but it was no big surprise numbers-wise. My issue is with the BMC situation. You could tell from the last 10-Q that Stylar/BMC were unprofitable (didn't know which was more/less profitable though), but you would've thought RTG had a plan for turning them around or re-tooling them to fit their strategy. Instead, we see them shed the business altogether. Don't get me wrong, I like the fact that this company is now leaner and meaner, but I just don't like the fact that they recently acquired a company they no longer are continuing with. (Maybe a little more diligence prior to acquiring would've gone a ways? I don't know... businesses change)

Let's hope those out there do not put too much credence on the face value of these financials and we continue to look to the future. Again, strict numbers, we didn't really miss much. We need folks to continue to look forward.

I will end with what I enjoyed most which happens to be in the section that I abhorred the most:

"As RTG has commenced launching its technology products, it has partnered with other companies, like Aderra, who are able to offer exactly the same kind of services, but with an existing track record, customer base and product portfolio. It became apparent to the Company's Board of Directors that, strategically, it would be better to partner with companies to deliver non-core services in order to enable greater focus being applied to RTG's unique selling point, its technology"