We pick the stocks, we start the research, you ring the register!

3-13-2006 - LBIX- Leading Brands Inc

CURRENT PRICE: $1.81

TYPE OF PLAY: SECTOR STRENGTH/VALUE COMPARISON/EARNINGS and GROWTH POTENTIAL

Leading Brands, Inc. engages in the distribution, sales, merchandising, brand development, brand licensing, and brand management of beverage and food products in North America. It bottles juices and beverages for co-pack customers, private label customers, and the company's licensed and branded products and have developed a coast-to-coast distribution network. When compared to HANS ($100+), JSDA ($6+), and INB ($7+), Leading Brands (LBIX) represents a compelling opportunity for high percent gain on a valuation basis. Their private-branded lines include energy drinks, carbonated soft drinks, and spring water. TrueBlue is a particularly important private brand that is gaining market share each month and is now distributed throughout the USA. This represents a significant advantage in terms of market sensitivity. Their licensed-to-bottle/distribute brands include the well known Fuji water and Hansen's (Symbol: HANS) Monster Drink. This Hansen product is now the #2 best seller behind RedBull for the energy drink market and has propelled HANS stock from $5 to over $100 in the last two years. HANS recently reported a 93% increase in sales for FY 2005 based primarily on their sales of this product of which LBIX is the licensed bottler/distributor. Finally, company CEO Ralph D. McRae recently disclosed that LBIX was experiencing "rather significant growth in virtually all areas of their distribution business" in the monthly newsletter. It was disclosed that LBIX is also now selling into some Asian countries on an informal basis. Based on their unique position as bottler of high-demand products and producer of private-label brands, we feel that LBIX represents a compelling entry at the current level.

LINKS FOR FURTHER READING:
LBIX Hompage
SEC filings for LBIX
General LBIX statistics