Stock Alert for International Building Technologies Group. Inc. (INBG)

International Building Technologies Group Inc. (OTCBB: INBG)

International Building Technologies Group Inc. (INBG) is in the business of manufacturing, marketing and providing equipment and materials to the building and construction industries. The Company is a developer and provider of a panel based building technology. The Company’s panel technology offers greater strength and resistance to winds and hurricanes, as well as providing a sustainable building solution that does not utilize timber, provides high insulation values and is resistant to bugs, mold and rot.

The Company is based in City of Industry, California.

Share Statistics (03-June-10)			FY2007	FY2008	% Chg	Q4 2008	Q4 2009	% Chg
Symbol	INBG	Revenue, $Mn	0.0M	0.0M	0.0%	0.0M	0.0M	0.0%
Current price	$0.0009	Gross marg.	n/a	n/a	n/a	n/a	n/a	n/a
52wk Range:	$0.0012-0.0001	Oper. margin	-n/m	-n/m	n/a	-n/m	-n/m	n/a
Avg Vol (3m):	n/a	Net margin	-n/m	-n/m	n/a	-n/m	-n/m	n/a
Market Cap.	2.27M
Dil. Shares Outst.	2.7B	EPS, $	0.00	0.00	0.0%	0.00	0.00	0.0%

Source: Reuters.com, SEC Filings.

Financial Summary

Since discontinuing the prior business and re-entering the development stage as of April 1, 2007, the Company’s results of operations has changed. There are no revenues during the current development stage as INBG is in the process of starting its manufacturing process.

For the quarter ended March 31, 2010, operating expenses for current operations totaled $118,570, which is more than the quarter ended March 31, 2009′s, operating expenses of $94,999. The increase of $23,571 in operating expenses between quarters ended 2010 and 2009 was mostly attributed to the increases in the officer’s salary and professional fees.

The most significant change in results of operations is the change in interest expense. As of March 31, 2010, interest expense was $29,025 and as of March 31, 2009, interest expense was $198,462. The $169,437 drop in interest expense was due to the change in beneficial conversion feature of the notes. There is also a significant change in the fair value of derivative. As of March 31, 2010, change in fair value of derivative resulting in an increment from $80,755 to $736,994. The increase of $656,239 in the fair value of derivative is resulted from the liability of derivative were more than that at March 31, 2010. The change in the fair value of derivative is resulted from the common stock equivalents of the Company on all convertible debentures and preferred stock exceeded the total common stock available for issuance by approximately 68,162,400,428 shares. CEO Kenneth Yeung holds 2 million shares of Series C Preferred Stock that are convertible into 54,421,768,707 common shares of the Company. Unless and until there is enough authorized common stock available to cover all common stock equivalents, Yeung will not convert any of his preferred shares. Furthermore, the stock is only convertible upon management’s discretion. Management currently does not intend on converting such stock. Also, warrant options are not included in common stock equivalents since the exercise price of $0.25 for the warrant exceeded the fair value of common stock of $0.0001 per share on March 31, 2010. The remaining common stock equivalent of 13,740,631,721 shares has been accounted for as a derivative liability. The fair value of the derivative of $1,054,713 was determined by utilizing the Black-Scholes valuation model.

LIQUIDITY AND CAPITAL RESOURCES

INBGs future success and viability is primarily dependent upon its ability to increase operating cash flows and develop new business opportunities.

During the next 12 months, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission (SEC), and the payment of expenses associated with reviewing or investigating any potential business ventures.

Additionally, INBG may experience a cash shortfall and be required to raise additional capital. In the three months ended March 31, 2010, the Company relied on funds from the sale of shares of stock and loans from our shareholders to finance its operations and growth. Management may raise additional capital through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that INBG will be able to obtain such financing. Failure to do so could have a material and adverse affect upon INBG and its shareholders.

Financial Strength (3-Jun-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.00	1.22	0.63	0.80
Current Ratio (MRQ)	0.00	1.65	0.77	0.96
Long-Term Debt to Equity (MRQ)	–	46.31	22.79	133.65
Total Debt to Equity (MRQ)	–	62.93	37.45	199.98

Source: Reuters.com, SEC Filings.

Analyst Consensus

No chart available.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=INBG.OB

Investment Highlights

IBT TECHNOLOGY

The IBT Technology system is 30% more resistant when it comes to seismic movement when compared to the traditional block system.

Hurricanes

The IBT technology has a structural capacity to withstand hurricane-like winds up to 180 km per hour (112 mph).

Fires

The IBT Technology can undertake fire exposure for more than one and a half hours.

Insulation

The expanded polystyrene in the IBT technology system has an acoustic insulation capacity that is four times higher than the traditional block system and thermal insulation that can isolate heat eight times more than constructions using the traditional block system.

Environmental Safety

Raw materials used in the manufacturing of expanded polystyrene do not expel toxic fumes.

Advantages

Versatile Design and Use:
Complete architectural freedom and flexibility, sound barrier, security and property walls exterior and interior wall systems, roof systems, flat and pitched. This technology can be used for multi-storey buildings, walls and floors.

Spectacular Visual Appeal:
No evidence of prefabrication after application of concrete, which can have a variety of finishes, smooth to heavily textured.

Environment Friendly and Energy Saving:
No wood or timber products used. Thermal insulation allows for a cooler internal environment. Air conditioning bills are considerably lower.

Cost Saving:
Significant decreases in on-site construction for time effective use of labor and simplicity of erection.

The Company’s technology is applicable for residential homes, schools, high rise buildings, churches, apartments, mining shafts, hospitals, fences and walls, vacation lodges, medical care centers and community buildings.

Source: http://www.ibtgi.com/

Technical Analysis

Source: http://stockcharts.com

INBG’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, INBG is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for INBG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above zero which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jun-3-2010	symbol	Share, $	$ Mn	2010	2011	2010	2011
Micheal Baker Corp.	BKR	35.50	316.21M	13.85	n/a	0.72	n/a
URS Corp.	URS	44.02	3.65B	12.46	n/a	0.39	n/a
Trinity Industries Inc.	TRN	21.95	1.74B	n/a	n/a	0.64	n/a
Construction Services Median			1.90B	13.15	n/a	30.58	n/a
Intl. Building Tech. Group Inc.	INBG	0.0009	2.27M	n/a	n/a	n/a	n/a

Source: Thomson Financial

http://www.thomson.com/financial/financial.jsp

Insider Trading Activity

NET SHARES PURCHASE ACTIVITYInside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	n/a
Sales	n/a	n/a
Net Shares Purchased (Sold)	n/a	n/a
Total Insider Shares Held	n/a	n/a
% Net Shares Purchased (Sold)	n/a	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	n/a
% Change in Institutional Shares Held	n/a

http://www.thomson.com/financial/financial.jsp

Source: Yahoo Finance

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