Stock Alert for Belltower Entertainment Corp. (BTOW)

Belltower Entertainment Corp. (OTCBB: BTOW)

Entertainment Corp. (BTOW), formerly Britton International Inc., is engaged in the production, as an independent filmmaker, and in distribution of feature length and shorter length movies. The Company owns a 20% interest in a literary composition and completed film project called Stuck, which it acquired from Prodigy Pictures Inc. The Company focuses on developing two film projects, named Dance the Green and A Kid for Christmas. The Company’s wholly owned subsidiaries include Calico Entertainment Group, Y2K Productions Inc. and 3A Productions Corp. On September 5, 2008, the Company acquired CaliCo Entertainment Group Inc. (CaliCo). On September 15, 2008, Britton International Inc. acquired 100% interest in Belltower Entertainment Corp.

The Company is based in Studio City, California.

Share Statistics (8-Jun-10)			FY 2007	FY 2008	% Chg	Q4 2008	Q4 2009	% Chg
Symbol	BTOW	Revenue, $Mn	36.0K	0.0M	100.0%	0.0M	0.0M	0.0%
Current price	$0.22	Gross marg.	11.1%	n/a	n/a	n/a	n/a	n/a
52wk Range:	$0.40-0.10	Oper. Margin	-197.2%	-n/m	n/a	-n/m	-n/m	n/a
Avg Vol (3m):	61,189	Net margin	-200.0%	-n/m	n/a	-n/m	-n/m	n/a
Market Cap.	10.72M
Dil. Shares Outst.	42.1M	EPS, $	0.00	0.00	0.0%	0.00	0.00	0.0%

Source: Reuters.com, SEC Filings.

Financial Summary

Liquidity

As of January 31, 2010, BTOW had total assets of $472,027 and total liabilities of $481,316 and it had a negative net worth of $(9,289). As of April 30, 2009, it had total assets of $258,811 and total liabilities of $475,244 and a negative net worth of ($216,433). As of January 31, 2010, it had a cash balance of $10,360, and as of April 30, 2009, had a cash balance of $9,724.

BTOW has had no revenues for the nine-month periods ended January 31, 2010, and January 31, 2009. It has an accumulated deficit from inception through January 31, 2010, of $9,289 and as of April 30, 2009, of $216,433.

At January 31, 2010, and April 30, 2009, BTOW had a related party shareholder loan outstanding of $63,195. This loan is uncollateralized, accrues interest at 5% per annum and has no fixed repayment date. As of January 31, 2010, and April 30, 2009, there was $9,246 and $6,857 in accrued interest due, respectively.

As of January 31, 2010, and April 30, 2009, BTOW also had a non interest bearing related party shareholder loan outstanding of $296,816 and $325,042, respectively, owed to a director and officer of the Company.

Additional Financing after January 31, 2010:

Between January 31, 2010, and the date hereof, BTOW sold and issued or agreed to sell and issue 5,555,500 shares of its shares of common stock to fifteen (15) purchasers, for cash or in cancellation of indebtedness, at $.10 per share. The sale and issuance of the shares is exempt from registration under the Securities Act of 1933, as amended. Each of the issuees or proposed issuees have acquired or will acquire the shares for investment and not with a view to distribution to the public. All of these shares have been or will be issued for investment purposes in a “private transaction” and are or will be “restricted” shares as defined in Rule 144 under the Securities Act of 1933, as amended.

Financial Strength (8-Jun-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.02	1.37	0.63	0.81
Current Ratio (MRQ)	0.02	1.50	0.77	0.96
Long-Term Debt to Equity (MRQ)	–	33.30	22.96	133.71
Total Debt to Equity (MRQ)	–	41.96	37.75	199.57

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=BTOW.OB

Investment Highlights

BTOW recently announced that it has received the completed first draft screenplay for the Company’s feature film entitled “Smokescreen” and will begin pre-production on the film project this summer in the United States and South America.

The Company acquired the motion picture, literary and life rights to produce “Smokescreen,” based on Robert Sabbag’s best-selling book of the same name, in August of 2009 and will work closely with the book’s main subject, Allen Long, who will act as consultant and co-producer on the film.

The Company has been in talks with a Major South American distributor and production partner and will be scouting locations in Colombia and Puerto Rico this summer, with filming to commence this winter.

BTOW also recently announced its entry into commercial direct response marketing production, with the proposed construction of a filming/production facility in Orlando, Florida. The Company will produce commercials intended to market and sell products through direct response marketing.

Potential revenue sources for the company will include production fees from the commercials it will produce in the Florida facility as well as back end profit participation on the products being marketed to the public through the medium of the television commercials the company produces. Direct response companies such as Tele-Brands and Guthy Renker generate in excess of $1.5 billion in sales annually while the industry has seen a 25% growth rate per year over the last 10 years.

BTOW will bill out on average between $20,000 and $50,000 per commercial depending on time and equipment used and will receive an average of 20% back-end profit participation generated from sales of the products it contracts.

BTOW is currently in negotiations with a production partner that will provide television broadcast time as well as product placement and clientele. Direct-response ads like infomercials can be contrasted with normal television commercials because traditional commercials normally do not solicit a direct immediate response from the viewer, but instead try to brand their product in the market place. The facility is rented on a per diem basis usually by the marketer who provides the script, copy, actors and related personal for the production of the infomercial. The facility will also serve as a pre/post production facility for BTOW’s current films under development or production. The Company said it sees the potential for multiple revenue streams as the trend continues upward while more high profile celebrities become involved in this medium of sales and marketing on a regular basis.

The Company will release further details as final negotiations come to a close and a definitive agreement is reached.

The Company believes that the entertainment industry is experiencing major market expansion along with major structural and technological change. Although the industry is dominated by the major studios, the Company believes that there is still opportunity for independent filmmakers in the domestic and foreign markets.

BTOW currently owns a 20% revenue interest in an original literary composition and completed film project called “Stuck” that it acquired from Prodigy Pictures Inc. in 2007; said revenue interest is subject to the repayment of prior financing on the film from the net proceeds from distribution. BTOW’s interest and participation in the investment is passive and it will be relying upon Prodigy Pictures to monitor the investment. Prodigy Pictures currently owns a 40% revenue interest in the film and owns approximately 2% of BTOW’s issued and outstanding common stock.

In addition, BTOW is in the process of developing a production slate of future projects. It is developing a film project currently known as “Dance the Green,” a story of a legendary golfer named Moe Norman. Further, it is in pre-production for a film project currently known as “Little Treasure,” a family comedy, and is also developing a film project currently known as “Smokescreen,” an action-adventure story about marijuana smuggling based upon a Robert Sabbag novel of the same name.

BTOW is currently negotiating for other potential feature film projects. The Company anticipates that any selection of a film project and its participation in the venture may be complex and extremely risky. Further, there can be no assurance that any of its production slate will be completed or if completed, successful. Due to current general economic condition and the shortages of available capital, there is no assurance that the Company will be able to identify and evaluate other suitable film projects.

BTOW intends to use outside financing wherever it is possible for its film projects. This ability will allow the Company to attract higher quality independent projects. Typically, a single purpose entity specific to the film project is established to produce and finance the film. The Company has formed Y2K Productions Inc., 19th Hole Productions LLC and 3A Productions Corp. to serve as these entities. It is in the process of forming Little Treasure Productions LLC for the production of “Little Treasure.” The entity, with the Company or Calico, then contracts with the financing parties and the owners of the film project. BTOW will be competing, however, with other established and well- financed entities. Its competitive advantage is that it will be able to provide the targeted independent project with less production restrictions and a larger ownership in the completed project. It further has had preliminary negotiations, at a favorable cost, with established production facilities in Canada and China. There is no assurance that these negotiations will result in enhancing or increasing its competitive advantage, if any, or result in us utilizing the production facility or completing a film project.

Source: http://www.britton.com/

Technical Analysis

Source: http://stockcharts.com

BTOW is below its 50-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

BTOW is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

BTOW’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below zero, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jun-8-2010	symbol	Share, $	$ Mn	2010	2011	2010	2011
Video Futur Entertainment Grp.	ALVOD	0.25	9.50M	n/a	n/a	1.37	n/a
Genius Products Inc.	GNPR	13.95	1.89M	n/a	n/a	n/a	n/a
iDNA Inc.	IDAI	0.90	1.18M	n/a	n/a	0.11	n/a
Motion Pictures Median			4.19M	n/a	n/a	0.47	n/a
Belltower Entertainment Corp.	BTOW	0.22	10.72M	n/a	n/a	n/a	n/a

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside 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

Source: Yahoo Finance

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.