Investing to Wealth

Red Branch Technologies (OTC PK: RBTI)

Red Branch Technologies (RBTI) provides sustainable-energy-powered solutions meeting commercial, industrial, municipal and federal requirements for site security, materials control, emergency communications, water purification and similar on-site applications. The Company simultaneously manages multiple renewable energy sources, and offers security products for military and law enforcement applications where cost/performance represents a critical selection factor. The application areas include Explosive Ordinance Disposal (EOD) robots, vehicular inspection and Unmanned Aerial Vehicles (UAVs).

Source: Reuters.com, SEC Filings. Fiscal year ending

Financial Summary

Revenue and gross profit/(loss) for the three months ended September 30, 2009, was $0 and $0, respectively. The Company recognizes revenue when product is delivered. Normal profit margins on Company products range from 30% to 50% on average sales of units.

Total operating expense for the three months ended September 30, 2009, was $104,015. The majority of this expense was consulting fees, salaries and rent.

For the three months ended September, 30, 2009, the company incurred a one-time charge of $280,000 reflecting the convertible debt assumption and subsequent share issuance on the divestiture of its’ former wholly owned subsidiary now known as Red Branch Solutions Inc. (Nevada).

The result of the above was a net loss for the three months ended September 30, 2009, of $384,015. The majority of the loss was, as described above, was consulting fees, salaries, rent and the one-time charge for the divestiture.

Source: PinkSheets.com

Analyst Consensus

No consensus analysis data available.

Investment Highlights

The Company has secured core-level relationships with several partners to establish bi-directional equity agreements between the core company and RBTI. The Company succeeds from equity appreciation of the companies by revenue derived from strategic relationships and major sales opportunities.

Core partnerships include:

• White Door Inc. - Specialists in mobile security solutions featuring innovative power management integrating renewable energy resources; wind, solar, fuel cells and advanced battery technology. White Door solutions address security needs for:
  • Emergency response communications and surveillance
  • Perimeter protection
  • Forward operating area support
  • Mobile water purification and desalination
• Level 4 Group LLC - Specializes in the homeland security, defense, law enforcement and commercial security markets. They assist product based businesses with the creation, analysis and execution of their business plans; get-to-market and commercialization strategies; and sales acceleration. L4G also work with portfolio companies to ensure debt and equity capital is available to execute their business strategy.
• Mission Critical Solutions - Represents a diversified technology company focusing on manufacturing, assembly and engineering that serves the needs of government, military, first responders and Homeland Security with a principal emphasis on renewable and portable power solutions. The company resides in an economic hub zone in western PA and has over 60 engineering personnel as well as world-class circuit board design and manufacturing facilities.
• Carley Enterprises - Provides capital to a portfolio of new ventures through public and private funding mechanisms. The company focuses on emerging technology companies in healthcare, biotech, security and energy.
• J.C. Watts Partners - Represents clients before domestic and international governments providing targeted, streamlined consulting services. Our team enables our clients to strategically promote their interests through political, advocacy, legislative and regulatory processes in Washington, D.C.
• Whitemarsh Capital Advisors - Provides investment banking services for early stage companies.

The Company recently announced a letter of Intent with Green Power Inc., in which RBTI will acquire a 40% stake in the wireless products and solutions company. No further details of the agreement were released.

Though shares set a new 52-week high when they soared 400%, from $.04 to $.17 in the last month, there’s no obvious source fueling the move. The lack of public information should keep you on your toes - while we don’t make trading recommendations, you should take caution trading RBTI.

Technical Analysis

Insider Trading Activity

Source: Yahoo Finance

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