Sub-Urban has really taken off in the early going- much to my surprise. The audience for this recent RTO is growing surprisingly rapidly.
I figured market conditions would moderate people’s appetite for this stock. However, investors are grasping the theme quite quickly, and realize the viral nature of trendy clothing worn by the stars. In today’s press release, movie star Britney Murphy gushes about her capri pants: “I love them, I never want to take them off. I want them in every color.” I would make them in twenty so colors so Brittany has to wear them every day.
The initial presentation went out after the close on Tuesday. The stock closed at $.35 that day. As I write today’s BLOG, the stock is trading at $.60- nearly a double in an awfully brief period of time. Amazing considering the current market.
Perhaps the J Crew IPO had something to do with investor appetite for this stock. J Crew came public yesterday. J Crew (NYSE: JCG) was priced at $20, and is already trading at $25. Events like this will put a charge into an entire sector.
There is a correction in the initial presentation. I stated “ 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”. This statement is incorrect. In fact, it was not a distribution agreement. It was a purchase order. A minor correction, but nevertheless we want to have the facts straight.
Here’s the chart- short term as it is:
As you can see, this stock has blasted off in the early going. It is capturing the attention of investors who know the potential of viral marketing to the “MASH” generation.
So far so good. If you don’t own it and want to, perhaps a little patience might be in order.
Comments and questions are welcome.
I think you might have picked a winner with this one.
Editor: In the early going, it would certainly appear that way.
Looks good to me. I bought 5,000 on 6/27 at $0.43 and sold all on 6/29 at $0.62. So far, so good. The last 3 days this week right after the market closed, SUUB has come out with news / releases / promotions regarding their produt line. The news / press releases are like a blitz, they are keeping the momentum moving. But maybe it is time to just sit back for a few days and see where it goes from here. Thanks / Walt
Editor: Great trade Walt. Hopefully the stock will give you another favorable entry point. I think it could find it’s way to $1 out in front of holiday buying season.
The CEO said at the interview at http://www.wallst.net, that the company “currently is kicking off a private rate” to capitalize the company for the next 3 to 5 years. I think they need some millions to pay all costs and production of clothes for the next 12 months until the company makes real revenues. I hope this doesn’t mean that they offer a private placement of, for example, 40 million shares at .50 to have $20 million available!!! Would be a tremendious dilution of, all in all, more than 80 million shares.
To avoid such a dilution I prefer the company gets a private loan insteed of “printing” new shares.
Any idea?
Editor: I would say it is much more likely a financing would come in the form of equity vs. debt. While I agree debt is less dillutive, equity allows them to have a stronger balance sheet. I can’t comment if I like an equity financing until I see the terms. Some are well structured for investors-some not. For example, I don’t like the terms of the debt deals for either HDY or TLPE- however, others have been for favorable. As soon as they ink something, I will have comments.
Looks tasty to me I placed an order for the opening bell.
Right now I watching WTVN looking to make some real money soon.
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Editor: Good luck with it.
What do you make of the recent downtrend on this stock? I noted that they have shipped their first orders but I haven’t seen any income figures. Are you still upbeat on SUUB?
Thanks
Tim Porter
Editor: Tim- yes- I still really like this one. The issue relates more to the market in general. Investors simply are not buying microcaps at this time, despite the larger market’s propensity to move up. When the microcap switch flips on, this stock should start behaving a lot better. The company is definately headed in the right direction.Â