Stock Alert for Lannett Company Inc. (LCI) " />

Stock Alert for The Brainy Brands Company (TBBC)

The Brainy Brands Company Inc. (TBBC) engages in the development and marketing of an extensive library of early childhood learning products, including a full range of puzzles, books, games, toys and audio-visual materials for the U.S. market and international marketplace. The Company’s strategy is to support its existing line of high quality educational toys, media, and activities and develop new product and offerings optimizing new technologies, delivery systems, and advances in early childhood education.

TBBC is headquartered in Suwanee, Georgia.

Share Statistics (01-June-11)
Symbol TBBC
Current price $1.35
52wk Range: $1.11-$1.63
Avg Vol (3m): 613,783
Market Cap. 44.14M
Shares Outstanding 32.70M

Source: Reuters.com, SEC Filings.

Investment Highlights

TBBC saw its shares drop over 14% on high volume yesterday on no news released. The stock traded near its 52-week high of $1.63 during the day, only to close at $1.35. About 3.41 million shares have traded hands during the session, versus the 10-day average volume of 1.72 million. TBBC is currently trading above its 50-day moving average of $1.31 and above its 200-day moving average $1.31.

TBBC designs, develops and markets tried and true, technology-based early education tools.  These tools include DVDs, CDs, books, games, puzzles and toys for children between the ages of nine months and five years. These products introduce logical and creative concepts to the youngest viewers and basics like ABCs, animals and art to preschoolers. The Bilingual Baby series exposes young children to languages such as Spanish, French, Greek, German, Italian, Japanese, Russian, Portuguese, Dutch, Swedish and Hebrew.  The Company sells these products domestically and internationally.

The Company claims to be a pioneer of children’s educational videos since 1995. Its products have won more than 75 awards from prominent educational, media and family organizations, including the Dove Foundation, Parenting magazine and Dr. Toy.

The Company on Tuesday said it has introduced its new Brainy Baby “Bundle Pack” product line at the 7th annual BookExpo America last week. The Company’s new Bundle Packs, as stated by TBBC CEO John Benfield, addresses two very important issues: First, the Company has simplified the purchase decision for its consumers by offering parents a collection of low competitively priced bundle packs that put singularly focused learning media in a single package that is perfectly sized for gift giving. Secondly, the Bundle Packs resolve its Specialty Toy Retailers issues with shelf space and multiple and disjointed placement within their stores.

Also recently, the Company announced that it launched its new packaging of its Brainy Baby product line. It stated that it has revamped its entire product line including toys, games and puzzles by taking a more comprehensive approach to early childhood education and incorporating both modern technology and old-fashioned products that suit every parent and child’s needs.

Visit TBBC at thebrainybrandscompany.com

Financial Summary

For the three months ended March 31, 2011, and 2010, the Company reported a net loss of $1.48 million, or $0.05 per share, and net loss of $177,491, or $0.02 per share, respectively.

The Company reported working capital of $199,631 as of March 31, 2011, compared with working capital of $1,566,740 at December 31, 2010, representing a drop of about $1.37 million. The decrease is primarily attributable to the Company raising capital in November 2010 through a convertible note. The Company used a majority of the capital raise to retool the product line and to begin to market the retooled product line.

Net cash used for operating activities for the three months ended March 31, 2011, and 2010, was $1.06 million and $465,368, respectively. Net cash used for investing activities for the three months ended March 31 2011, and 2010, was $23,608 and $-, respectively. The Company purchased trade booth equipment during the three months ended March 31, 2011.

Net cash obtained through all financing activities for the three months ended March 31, 2011, was $333,532, as compared to $465,757 for the three months ended March 31, 2010.

TBBC stated that it continues to explore potential expansion opportunities in the industry in order to boost sales, while leveraging distribution systems to consolidate lower costs. The Company needs to continue to raise money in order execute the business plan.

Source: Form 10-Q for TBBC

Analyst Consensus

No recommendation data available.

Technical Analysis


Source: http://stockcharts.com

TBBC 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.

Comparative Analysis

No direct competitor comparison.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *