Sub-Urban corrected shortly after the last edition, and now appears to be headed back in right direction. I’m sticking with my Suggested Stop Loss for traders of under $.44. On Monday, it blipped down there briefly, but rebounded nicely.
It would appear the first correction for this one has run its course in a day. The stock has a very short�term trading history, so it’s the only way you can look at it.
Here’s the chart:
Notice how the 61.8% retracement level from its initial move up proved the turning point once again. Love those 61.8′s.
For your viewing pleasure, there is a two minute video, packed with trendsetters in pop culture. This is really reflective of where the company is going from a marketing perspective.
To access the video, simply Click Here. Alternatively, copy and paste the following URL into your browser:
http://media.sitestream.com/trilogy-capital_sitestream_com/open/whiteboy_promo.wmv
Until viewing this video, I did not know that Eva Longoria was a White Boy fan. Is there a bigger name in the tabloids these days? There’s a few rap stars as well as other. Check it out.
Comments and questions are welcome.
What am I missing with SUUB? The news they are putting out is good, they are putting the name in front of the target audience and the target audience will spend there last dollar on fast food and cool clothes. So what do the investors not like about this stock?
Editor: The lack of interest is entirely driven by the market at this point- into October, November, December I believe the market will love this stock the way they are going. This is exactly the market environment I was referring to in the May 21 edition entitled “Don’t Say You Weren’t Warned”. You might want to read it again. It should continue to be a low volume, boring market for the forseeable future.
I like what I hear about SUUB, a fad can run wild, but how long do you think it will take for this to catch on. Also have you any knowledge of EQTD?
Editor: I think they will fill a lot of orders for their fall and winter lines of clothing. I think it is already catching on. They seem to know how to work the Pop Culture/viral marketing pretty well. They could get some pretty high profile headliners- this “free” publicity show launch the company. Watch it into the Fall. For the time being, the main thing holding us back is people’s lack of interest in the market.
SUUB announced 7/28 a new order from fashion leader Dr. Jays to carry SUUB’S Mash Culture Lab line in their 19 stores throughout NY and NJ as well as on their online web site.
Their web site is very impressive, offering a long list of fashion lines from all the top named designers / brands.
Dr. Jay’s is well established / successful having been around for 30 years and known as a pioneer in urban and hip-hop fashion.
In addition, SUUB just recently contracted for 5 Virgin Megastores to also carry their line at various high profile stores / locations around the country.
THINGS ARE LOOKING GOOD.
SUUB has blitzed the market with their lines / products and it now appears they are being noticed. Hopefully it will / should pay off well. Fall holiday shopping season is approaching.
Walter F.
Editor: I’m actually pretty excited about this one. I believe we will really get some traction on the stock in the Fall once we get past the summer doldrums. The company should be doing really well with Fall and Holiday lines. If they get the right viral PR going, it could really take off. I believe it’s got a shot at $1 this year.
What would you reply to someone who argue like this:
SUUB seems to be nothing but a little T-shirt company, printing some aggressive logos on those t-shirts, try to sell it expensive to young people and wants that the market believe this is a great investment opportunity. Additional, how will SUUB make international fashion shops believe, that selling those t-shirts will make real revenues?
Thanks.
Editor: Actually, that’s a pretty good descritption of the company. It’s a little more than just t shirts- there are hats, sweatshirts, women’s casual suits, etc. I guess it’s worth pointing out that True Religion was just another boutique denim manufacturer selling a few pairs of jeans expensively to young people with more money than sense. They got hot, viral, and were the stupid overpriced jeans that everyone reading People and Us had to have. The stock went from $.25 to $24 in 18 months. Sure- it’s silly, but if you’ve got the hot pop culture product, you can sell millions of dollars in high margin product. SUUB seems to have the themes to get hot. That’s the risk. However, the stuff is being worn by some high profile pop culture stars, and they are getting orders from the right places. Fred Segal, Virgin Megastores, etc.
why no volume on SUUB suddenly. Hasn’t moved in days. What’s happening?
Editor: Just the August doldrums- low or no volume everywhere this time of the year. It will pick up in the Fall. If you like the company, look for bargain basement prices in September. I don’t know if it will drop, but it is the worst month of the year, ahead of the best quarter of the year.
….and in the ‘worst months of the year’, as you write correctly, Sub Urban are not able to deliver the Quartely Report, thus SUUB now is a PinkSheet! Without any notice….while they release every like crap they do to pump the stock. This is extremely annoying in my opinion. If SUUB, just listed since one quarter of a year, starts to ‘satify’ shareholder like this I am not impressed.
Editor: Here’s my thought for you. SUUB is highly speculative and doesn’t have a history of serious revenues. They seem to have done a pretty good job getting this trendy crap on some pretty high profile people. They have also managed to get orders from some very pop culture, high end, boutique type stores. If they can manage to make this brand “viral” with GenX, the company could do very well. If they don’t, this thing will bomb. Therefore, if you aren’t willing to stay in just sell the stock and move on. This speculative bet is not for you. I don’t know why you think it is in the Pink Sheets or why they can’t file the Q. It is not in the pinks, and they have filed their Q, which is meaningless at this time. Their first revs will come from Holiday seasonal shipping.
Thanks for your reply. But, sorry, yesterday SUUB definitively has been in the PinkSheets with SUUBE and I didn’t get any rates at OTC! Thus my frustration should be understandable. Maybe you didn’t have a look at it yesterday. But your arguments are useful. Thanks!
Editor: I’m not sure where you are getting your info. If it traded on the Pinks, it was very brief. As I write this reply, it is bid twice at $.35, offered once at $.40, and shows up on Yahoo! under the .OB symbol. That is a bb stock. Nevertheless, I share your frustration as well on the lack of interest.
Just a question: Yesterday SUUB increase 17% by 200 (!) shares – today SUUB decreases 23% again by 200 (!) shares. What kind of game is this, neither looking like short selling nor MM games nor selling of a pennystock gamler? Thanks for an idea.
Editor: This stock is extremely thinly traded at this point in time. Thinly traded stocks tend to make volatile moves on no volume. It’s pretty meaningless. Until this stock begins trading some volume again, you really can’t tell anything about what’s going on. It should pick up in the Fall as news starts to develop.
Even with all the recent promotional hype / press releases about SUUB’s new contracts with EMI Music Publishing, delivery orders to Fred Segal stores, milestone orders from Retail Apparel and Active Wearhouse, and shipments to Virgin Megastores and Dr. Jay’s, this stock does not get noticed.
Not only does the stock not get noticed, it moves 20% or more in either direction with only 200 lousy shares out of 166 million shares being traded.
I do concur with you that the stock should go up ( hopefully ) as we enter into the fall holiday season, but this is painful to watch. I used to get excited when reading SUUB’s press releases regarding new ventures / prospects falling into place for the company but not anymore. I do not understand what it will take for this company to get noticed by the general public and investors.
I am just a little bewildered and letting off some steam.
Okay, now I feel better.
Thanks / Walter
Editor: Every observation you made is absolutely true. I believe the issue is more market related. Micros are just quiet right now. The good news- the company is doing what it said it would. A little faith and patience are the order of the day.
Sorry, but Walthers observation is not absolutely true: But obviously many potential buyer are still not informed that SUUB made an reverse split! Thus they have only approx. 49 million shares outstanding (but not 166 m!). Of those 49 million ONLY 14.5 million are in the free float – the rest is in the hands of insider!
That is great in my opinion and I believe that one day SUUB will rock also because of lack of I&O.
It would be good to correct this wrong numbers at as many financial websites as possible to get the right picture of the marketcap…. which in this case is still low with approx. $ 16 million only !!!
Maybe the wrong numbers are holding back buyers also right now!?
Editor: I don’t believe market cap and shares I&O are what’s holding this stock back. First, the company has stalled in its efforts to get the word out to investors. Second and far more important is the visibility- You might have noticed that in the transition the company did zero sales in the June quarter. While they have announced a number of seemingly transformational orders, they have not announced any quantities or revenue levels. Until they do, I don’t believe the stock will get any traction. However, I don’t mind. Accumulate it while it is quiet and no one wants it. When the new line gets “viral” and starts getting some PR, things will change.
Can you give an interpretation of this part of the latest 8-k?
“….From August 28, 2006 to September 18, 2006, to obtain funding for working capital, Sub-Urban Brands, Inc. (the “Company”) entered into securities purchase agreements (the “Agreement”) with accredited investors (the “Investors”) for the sale of $300,000 in the principal amount of 10% Subordinated Promissory Note (the “Note”) and 373,500 common stock purchase warrants (“Warrants”) exercisable at $0.40…..”
Thanks.
Editor: Sure- they are borrowing money at 10% and throwing in a warrant that converts at $.40- which really acts like a financing at $.40 when the warrants are converted. Apparently, they need money, which is no surprise. This seems like a pretty good financing to me as long as their is no toxic feature on the debt. There wasn’t any disclosed in the 8k, so it’s probably just straight debt.
With regards to an articel at http://www.switchmagazine.com/skateboardproductreviews/whiteboy.html
I realize only now that the ‘Whiteboy’-production line already exists since Oct. 2005, maybe even earlier. Do you know why only now in winter 2006/2007 we have to expect revenues although already in 2005 SUUB has been producing their new brands? Even Don Cheadle and Tommy Lee have been wearing this brands obviously already before October 2005. Thus, if SUUB has been producing this brands already in 2005 – where are the revenues of this? Well, just wondering. Thanks
Editor:The current public company bought the White Boy and completely revamped the line. I took a few months to expand it. They weren’t really going for new sales or new accounts until they delivered the Fall line, which is greatly expanded. I would like to see some numbers as well.
In June you did this comment: “Editor: The lack of interest is entirely driven by the market at this point- into October, November, December I believe the market will love this stock the way they are going. ” Until now, mid of November, the stockprice still shows no activities and, additional, the company doesn’t release anything anymore as well. Do we have to interpretate that you have been worrying about lack of interest in this stock already in June and that this is the reason why you cover SUUB for 6 months until Dec. 27 only?
By the way, I am also a shareholder of FMLY which you covered as well – meanwhile a disaster. Do we have to fear here also?
Editor: I have reason to believe SUUB is going to get active once again. I know the patience of shareholders has been tested over the past few months, but the company is actually coming along nicely. They are closing in on raising a bunch of capital to move forward more rapidly on a number of fronts. Once completely, I believe you will see renewed enthusiasm for this stock. You cannot compare this one to FMLY – that stock was destroyed by the toxic financings they engaged in which I chronciled in detail. Despite the company’s achievements, I finally through in the towel and told everyone to sell that stock. It happens in the microcap world. If SUUB engages in a similarly toxic financing, I will let everyone know and suggest selling the stock. �
The 10Q is out. In my opinion the numbers do not look like SUUB can avoid toxic financings. I am curious about your comment. Thanks.
Editor: I am going to wait until they actually do something before passing judgement. We’ll see.�
With all respect, I am a little bit astonished that you recommend a stock which you cover 6 months only….but if I would not ask some qeustions you would not have said one word since 4 months. I don’t understand this kind of coverage. As I said, with all respect! Michael
Editor: Michael- they haven’t given me much to talk about as far as hard information. Last quarterly numbers were nothing short of pathetic. They haven’t hit their stride due to lack of capital. They are working feverishly to get adequate financing to move forward, but have yet to hit their stride. Once they really start moving forward, I will have a lot to say.
Taking into account that the CEO promised monthly letters to shareholder – which don’t come – and that SUUB has been pumping news releases into the market at Sept. 14,15,17,18,20,21,22,29 and Oct. 4,5,6,7,9,10 – and since than nothing anymore – I wonder why this doesn’t astonishes you. In my opinion it doesn’t look very trustworthy trying to pump the stock with daily news – and after the shareprice did not react to stop doing even the monthly letter for shareholder. Big words by SUUB in the beginning and now total silence. I guess I know your comment already at December 27 when your coverage ends. Cheers.
Editor: That could indeed be the case. This is clearly not panning out as the company promised early, as you so succinctly point out. I am going to make an effort to contact the company next week and see if I can determine if and when they might be turning the corner.�
After doing some new DD I noticed: SUUB has no IR anymore, SUUB has no companies website anymore (just whiteboy etc.) where the team, directors, news, companies profil etc. can be seen. There is even no chances to get in touch with SUUB. What kind of strange company is this going to be? Would be nice to read some final comments of you before you stop to ‘cover’ this recommendation of yours end of December 2006. Regards
Editor: I believe we’ve all pretty much already come to that conclusion. They were supposed to get a big financing, and it never happened. The investors who promised the capital bailed. It’s a loser. That’s life in the microcap world. Had you bought CPNE, my #1 pick for all of 2006 at $.50, and SUUB, you’d probably be way ahead. Some microcaps are going to be losers. Sell it, take your tax loss, and move on.�
Don’t worry, I have bought some of your picks: FMLY, AMW, XLMG, NWIS, and other. All of them have been real losers. I don’t want to be inpolite as I know everybody is responsible for himself. But taking into account that most of your picks are loser it would be nice if you would not name just this or that gainer you have been able to pick by chance the last years – which can be counted anyway at one hand.
Thank you for your very short final comment to SUUB. Good for you, that your are able to take your losers very lightly – some people who have accumulated your picks might not take it so eas – by I know it is very easy to recommend stoplos – that makes free of responsibility.
Good luck with your ‘coverage’.
Editor:� Of course I take it easy and I don’t lose sleep over the losers you identify- you know why? Because everything I write and everything all over the sight reminds you that microcaps are highly risky and there will be losers. If you can’t take that reality, this is not the right end of the market for you. If you don’t the stock that was identified as the number 1 idea over and over for 2006, what am I supposed to do? There are varying degress of risk in all of them- you choose. And, by the way- I do take responsibility- I challenge you to find another microcap newsletter that continues with its follow up like I do- has a BLOG where you can post your thoughts or gets questions answered, or even admits to its mistakes. I am the only one.�
OK, you are right in one point: You are fair enough to post blogs and comments. but I only ask you to do one thing: Re-read your replies to comments at this SUUB blog and ask yourself who has been more enthusiastic about SUUB since you covered this stock: it has been yourself….if you read carefully. And this is the responsibility I am talking about. But I understand that you can’t agree with me. But notice: Regarding responsibilty it is not the quality of my investment behaviour – it is the quality of your recommendations that counts. Of course you want htta people trsut you – this is the basic of this website as otherwise no compnay would be interested in your coverage. I have been reading your journal since years – I should have stopped doing this much earlier. Your paid coverage can not guarantee that you know if any of those companies you cover is good or not. In this case other pennystock trader are as good or as bad as you are.
I think I should open a website like yours to make money.
Good luck.
Editor: If you are unhappy why don’t you simply stop reading and look elsewhere for ideas. I appreciate the dialogue, so if you choose to stick around, keep making submissions even if they are negative. Investors need to be exposed to all sides of these stories. Also- one other thing to keep in mind- I have the advantage and sometime disadvantage of talking directly to the managements of the companies I represent. They tell me things I cannot legally share due to regulations and non disclosure agreements. As such, sometimes I have information that makes me more bullish than you have, and it translates in the writing. Sometimes, those managements simply fail completely to deliver on promised results. In the case of SUUB it was about a promised but not delivered financing. They still claim they are going to get it, but they are out of time as far as I am concerned. And- by the way, if you are in the right stocks and trade them well, you can make money with the OTC Journal. The most important part- the SSL. Use it. This will help us avoid the big losers.
May I write one last comment: I like the otcjournal – this is why I have been reading it for years! In case of SUUB I only criticize that you have been very enthusiastic, than stop comments for months, and finally, months later, when a shareholder like me does negative comments, you call this stock immediately a loser! Why didn’t you tell this a bit earlier to the readers here – why did you wait until someone appears here and wensd his negatice thoughts. why didn’t you tell here : Mr. Freeman works for Oakley since October and is out of SUUB, the links of the SUUB website doesn’t work at all, no DD is possible anymore, the email adress of the CEO is dead, the IR is dead, tec. etc. If you recommend a stock you have to tell this much earlier to your readers. If I would not have tried for days to get in touch with the CEO i would not know till today what is going on at SUUB. But this should be your work for the SUUB Blog as it was not me who recommended this stock at the otcjournal! We all have to make our DD, of course! But you can’t recommend this stock, keep quiet some months and react only becasue I am bad
Hey, that is all I have to criticize – and, whatever you might say, in case of SUUB I believe I am right.
I keep on reading your journal.
All the best for 2007
By the way, as much as I understood the CEO, SUUB is not a loser yet. We iwll see early 2007
Editor: Thanks for your contributions. I can only say the SUUB situation was difficult- once a week there were promises of a change, and it didn’t materialize. Sometimes you go ahead and tell everyone it doesn’t look good, and the next day the company pulls it off. In retrospect, it would have been better had I published a “shot across the bow” for loyal subscribers like you.� For this, I apoligize. I hope you were in the #1 pick of 2006 to make up for SUUB when it was still cheap.