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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:, 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

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


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.

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