Newsletter

Viral Fashions-Hollywood Sets The Trend

June 26, 2006
Volume VII, Issue 53
Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

To OTC Journal Members:
 

Viral Fashions- Hollywood Sets The Trend

Here's the formula- take a hot, trendy fashion line. Get a few Hollywood stars to wear it. Get their pictures plastered all over the vapid, tabloid magazines America can't seem to get enough of, and watch sales soar. Personally, I don't give a rat's backside about Brad and Angelina, Tom and Katie, Mandy, JLo, or Hillary. However, it appears I am in the minority. Apparently, what they look like, say, and wear is very important to America. If I can find profitable investment ideas in the microcap space based on what they are wearing, I am going to take an interest.

It worked for True Religion. You are looking at the chart of a struggling clothing manufacturer- until June of '04. A few Hollywood stars started wearing their jeans. The company got some ink. All of a sudden, every teenage girl and her youth obsessed mom had to have these jeans. 

The company started out as a "cult story"- only available in a few high end boutique locations. Fast forward 18 months. Demand swells. Orders come in. High end department stores start carrying the product. One year later- Barney's, Sak's, Nordstrom, Bloomingdale's, Urban Outfitters, etc. All retailers who carry the product.

Look at what it did for the stock. The company came off the canvas as a sub $1 issue on the bulletin board, and voila, a mere 18 months later- $24 on the NASDAQ National Market. Right up there with the big boys.

Here's a small, relatively unknown company that hopes to follow in the footsteps of True Religion. How far have they made it?- Their designer clothing is beginning to find its way to the pages of the tabloids draped on some of Hollywood's hottest stars. Their Fall line will be featured in the hottest Hollywood boutique. Pictures below and news below:
 

Sub-Urban Brands (OTC BB: SUUB); Found in Hollywood and In the Tabloids

Pop Culture is huge. The hottest and most viral web site, MYSpace.com sold to Fox Interactive for $580 million. Critics thought it was a ridiculous price at the time. However, cross marketing genius Fox knew that by leveraging the billions of eyeballs that inhabit MYSpace with its mind boggling 33 million members, 15 million daily unique logins, and nearly 30 billion monthly page views, they could get a return on investment. The value of MYSpace is now estimated to be in the billions as Fox has cross marketed the MYSpace audience with American Idol and several other of its properties. Who knew a television show could create 50 million text message in one evening? Fox- the cross marketing genius.

The new information age has been embraced by the 16 to 24 demographic. Information on the latest, hottest, trendiest products travels fast with this bunch. It is known as "Viral Marketing", and crosses all the new digital information technologies. Cell phones, text messaging, blackberries, IM on the computer. Want to punish your teenager? Take away his or her cell phone. 

Sub-Urban brands understands viral marketing, as is set on making its mark with a clever new brand. 

Does it get any hotter than Jessica Alba? Here's a full page on Jessica found in a past edition of the highly respected an venerable "Star" Magazine (that was sarcasm for those who didn't get it). 

Note the "Whiteboy" tank top. This is the hot new trendy line from clothing manufacturer and designer label of Sub-Urban products. Get ready to start seeing "Whiteboy" everywhere. 

Here's rocker Tommy Lee with his WhiteBoy tank top. The company is currently focused on two brands- The WhiteBoy hip, urban line, and their products with the "Rooster" logo.

Inspired by the energy and vigor of youth, urban and music culture, Sub-Urban is initially focused on creating a family of non-competing brands for its key target consumer, 40 million 15-24 year olds. Sub-Urban's current portfolio of trademarked apparel and accessory brands includes WHITEBOY for Men, WHITEBOY for Women and BLACK JESUS (street wear) and PYT (for younger girls). Consistent with the company's high growth strategies, the Company will be actively marketing these brand offerings to Japan, Canada, Australia and 25 European countries.

Here's some more images with the WhiteBoy line. Movie star Brittany Murphy is wearing the WhiteBoy Terry Zip suit. How about Don Cheadle- red hot off 2005 big box office hit "Crash".

Don Cheadle is adorned with a WhiteBoy t-shirt in this picture. The 15 to 24 demographic eats this stuff up. 

Today, just after the market closed, Sub-Urban took the first big step towards retail acceptance. Sub-Urban announced it has executed a milestone order with prominent national fashion retailer Fred Segal to carry the Company's flagship WHITEBOY® clothing line.

Fred Segal is considered Hollywood's ultra swank boutique. Visit www.seeing-stars.com/Shop/FredSegal.shtml. On the first page of the web site, Winona Ryder, Jennifer Aniston, Leonardo DiCaprio, Gwyneth Paltrow, Ben Affleck, Salma Hayek, Meg Ryan, Alicia Silverstone, George Clooney, Denise  Richards, Bette Midler, Samuel L. Jackson, Farah Fawcett, Alanis Morrissette, Rod Stewart, Chris Rock, Rachel Hunter, Nicole Kidman, Clare Danes, Jerry O'Connell, Madonna & Seal are all mentioned as regular customers.

The stars are starting to wear it. The highest profile boutique in Hollywood is going to carry it. Seems like the first steps are in place for a "viral" market hopefully akin to True Religion.

According to SEC filings there are 46 million shares Issued and Outstanding- the vast majority of which are owned by the officers, directors, and investors. As found in the SEC filings, here's how the company describes itself:

"We intend to support the WHITEBOY® brand with a well-researched marketing strategy: We have spent the better part of two years studying the reaction by potential consumers and believe that the brand must be supported by an image-based multi-faceted marketing campaign. We believe that trend setting actors, musicians, professional athletes and other celebrities have begun to adopt the WHITEBOY® brand and that our brand has also been accepted in both the hip-hop and board sports communities. One of the keys to our success is being able to project a single image to our target market that readily defines the “WHITEBOY®” brand. This image will include the “Cock Camo” and it will be complimented with the tag line “Get Cocky”. The “Get Cocky” slogan and “Cock CAMO” image will be supported by a multiple media campaign aimed at:

  • Driving consumer demand by demonstrating the appeal the brand has with leading trendsetters and tastemakers within the “Mash” market;
  • Educating the retail buying community that “WHITEBOY®” is a leader in the “Mash” market and that its designs and irreverent attitude is what typifies the “Mash” market; and,
  • Focusing on defining to our target market the attitude and style of the brand and drawing attention from “Whiteboy” ® as a provocative word."
There's not much to look at for trading history. The company hit the public markets about one month ago via an RTO, and has since traded between $.30 and the low end and $.50 at the high end. The stock's history prior to that time is meaningless.

Between the tabloids and Fred Segal, this one might just become red hot. Here's today's news release for your review:
 

Sub-Urban Brands Executes Milestone Order to Launch WHITEBOY Clothing Line with Prominent Fashion Retailer 

Fred Segal Validates Company's High-Growth Strategy to Capitalize on Global Youth Consumer Marketplace 

LOS ANGELES - June 27, 2006--Sub-Urban Brands, Inc. (OTCBB:SUUB - News), a multi-brand apparel company pursuing explosive revenue growth in the global fashion industry, has secured a milestone order with prominent fashion retailer Fred Segal to carry the Company's flagship premium WHITEBOY® clothing line. Launching with Los Angeles-area based Fred Segal, a trendsetting fashion retailer, further validates core elements of Sub-Urban's strategic business model to capitalize on the multibillion-dollar worldwide youth market.

Fred Segal will sell WHITEBOY's new Fall/Winter 2006 collection of men's clothing at its prominent Santa Monica , Calif. , location. Retail fashion industry stylists and buyers for the largest retail and department store companies, as well as fashion-conscious consumers, look to Fred Segal to identify new trends and styles. As a result, the Fred Segal stores frequently serve as an international showcase and launch pad for the world's most successful brands.

“It is important that the worldwide investment community understand that Sub-Urban, as a cutting-edge multi-brand company, is committed to a high growth, high revenue business model,” said Joseph Shortal, Chief Executive Officer of Sub-Urban Brands. “The launch with Fred Segal is a major business milestone in Sub-Urban's strategy to establish our brands in the forefront of the powerful youth consumer marketplace, to generate significant growth in revenues and earnings, both in the U.S. and internationally.”

Through its various brands, Sub-Urban primarily targets the age 13-29 youth consumer demographic group, which comprises an estimated 40 million-plus consumers in the U.S. alone. The Company is committed to generating high-volume sales by addressing this multibillion-dollar youth market with hip styles inspired by urban and music culture.

Key pieces in the Fall/Winter Sub-Urban collection include the WHITEBOY® premium outerwear featuring the rooster logo as well as graphic Ts and signature cargo pants. Retail price points range from $29-$110.

Leading celebrities and artists in the entertainment and music industry have already adopted Sub-Urban's WHITEBOY® apparel, driving high-profile exposure in worldwide print and electronic media, and firmly establishing the collection's fashion credentials and broad appeal.

About Sub-Urban Brands

Sub-Urban Brands, Inc. is a multi-brand company which designs and markets cutting-edge lifestyle apparel that targets the rapidly-growing multibillion-dollar youth consumer marketplace. The Company pursues robust revenue-generating opportunities within multi-tiered retail markets that leverage multiple brands and market segments to create financial success. Sub-Urban is committed to further expansion and increased shareholder value through both the internal development of intellectual property and acquisition of additional brands, as well as to the establishment of new international marketing alliances that will reinforce its recurring and non-recurring revenue streams. Inspired by the energy and vigor of youth, urban and music culture, Sub-Urban is initially focused on creating a family of non-competing brands for its key target consumer, an estimated 40 million 15-29 year olds. Sub-Urban's current portfolio of trademarked apparel and accessory brands includes WHITEBOY® for Men, WHITEBOY® for Women and BLACK JESUS® streetwear apparel and PYT styles for younger girls. Consistent with the company's high growth strategies, the Company will be actively marketing these brand offerings to Japan , Canada , Australia and 25 European countries. For additional information, please visit www.whiteboy.com. For more investor oriented information about Sub-Urban, visit http://www.trilogy-capital.com/tcp/sub-urban/. For current stock price quotes and news, visit http://www.trilogy-capital.com/tcp/sub-urban/quote.html. To view an Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/sub-urban/factsheet.html.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contacts:
Media and Public Relations
Caroline Rothwell
323-781-2276
Or
Financial Communications
Paul Karon
Trilogy Capital Partners
800-592-6067
paul@trilogy-capital.com

Comments in the BLOG

I finally got the time to post three new BLOGS over the weekend- You can go to the web site and read my thoughts on US Energy (OTC BB: USEI), Commerce Planet (OTC BB: CPNE), and Dexcom (NASDAQ: DXCM). Tomorrow I will posting a comment on the recent financing of HyperDynamics (AMEX: HDY)- Here's a preview- I believe it is the death knell for the stock. At the corporate level, if you don't deliver, it will eventually catch up with you. If the company thought it was good news they would have put out a press release.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.
 
 
 
 

 

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