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jimmenknee

02/28/10 8:20 PM

#30799 RE: Zardiw #30740

JBII: For Newbies: Trading Issues-- Caution Advised:

1. Price is not fundamentally supported:
a. Price/Book Ratio: 18.43
b. Price/Tangible Book Ratio: 39.03
c. Price/Cash Flow: 1280.8
d. Price/Sales Ratio: 68.10

2. Float is not liquid:
a. Bid -to- Ask Spread is large: > 6.5%
b. Turnover Ratio is way below average: 0.27% based on 8 Day Moving Average (~ 47k shares daily) -vs- 1% for liquid floats (JBII would have to trade ~170k shares daily).

3. Significant Share Overhang: Restricted Securities in sizable blocks have been issued in multiple transactions at prices and/or values significantly lower than the current share price. The eventual selling of which will increase the float and place a downward pressure on the stock price.

4. Costs of continued development, growth & acquisition -vs- increased revenue generation unknown in the short-term:
a. Company is currently minimally profitable over 9 months.
b. Significant dilution with Private Placement reportable this quarter.
c. Company is still continuing to develop its recognized primary revenue generator.
d. Company is on an aggressive growth path with current highest revenue producer.
e. Company is actively attempting to acquire additional company(ies)-- not known if they are accretive or dilutive

5. The largest asset on the balance sheet is the "media credits":
a. Signs of their use beginning to appear on websites that have questionable value.
b. Do not know at what rate they are being reduced nor at what true cost to the company WRT a direct agreement with the media provider.

References:
http://ih.advfn.com/p.php?pid=financials&cb=1267396758&symbol=JBII
http://www.sec.gov/Archives/edgar/data/1381105/000121390009003274/f10q0909_jbi.htm
http://www.media4equity.com/index.php?option=com_content&task=view&id=101&Itemid=25
http://about.newsusa.com/corporate/executive_team.asp
http://www.sec.gov/Archives/edgar/data/803097/000100210507000278/form8ksportsquest.htm
http://www.jbiglobal.com/
http://www.alexa.com/siteinfo/copyrightfreecontent.com
http://www.alexa.com/siteinfo/newsusa.com#reviews