Although we didn’t catch the shares at their lowest price, Omni Ventures Inc. (Pinksheets: OMVE) has been on an absolute tear since our penny stock alert. OMVE wholly owns PRVCY Couture Inc. and is up 441% since the March 7th alert and still going. PRVCY is poised for massive growth in the apparel market which will drive the price of OMVE higher with some quoting $12 per share based on PRVCY jeans becoming one of America’s top denim apparel brands.
The apparel market is valued at more than $200 Billion annually with more than 7% annual growth. Selling your products to Target and Sears will get you sales, no doubt, but when some of the top celebrities like Jennifer Lopez, Kim Kardashian, Jessica Alba, Eva Longoria, Katy Perry, Paris Hilton, Taylor Swift, Lindsay Lohan, Mark Wahlberg and Ashton Kutchner are all sporting your PRVCY jeans and brand name, the PRVCY Couture brand name, chances are that OMVE stock price will be the one to benefit from it.
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Consider the recent explosion Joe’s Jeans (Nasdaq: JOEZ) had when they reported their Q1 2012 earnings. JOEZ, on of the Nasdaq penny stocks, went from $0.61 to $1.56 from late February to mid-April, a 155% gain. JOEZ closed int he last trading session at $1.35. And how about True Religion Apparel that has a $681.72 million market capitalization.
With similar apparel manufacturers like True Religion Apparel (Nasdaq: TRLG) and Seven For All Man Kind nearing $1 Billion in value, the PRVCY owned brand of OMVE is extremely well positioned to take advantage of an already profit-bursting market. For example: TRLG reported revenue of nearly $420 million in fiscal 2011, an increase of 15.4% compared to fiscal 2010. (see TRLG 10-K here)
Luxury apparel markets represent unique advantages such as high profit margins thanks in part to premium pricing, lower marketing costs due to a less crowded market sector and relative invelnerability to recession since demand for luxury items continues to grow in spite of economic fluctuations. While many brands try to get their products onto celebrities and fail miserably, OMVE‘s PRVCY brand has a proven celebrity following.
OMVE Stock Snap Shot:
Market Cap: 57.33M
52 Week High
52 Week Low
5 Day History:
Percent Change: 38.16%
Moving Average: 0.482
Average Volume: 1,721,185
10 Day Stock History:
Percent Change: 112.55%
Moving Average: 0.4165
Average Volume: 2,475,874
Shares Outstanding: 109.20M
Last Trading Session:
Average Trade Size: 4,885
How OMVE came to acquire PRVCY:
PRVCY Couture, Inc. is a wholly-owned subsidiary of OMVE. PRVCY was incorporated in the State of Nevada on December 7, 2010 to receive the assets defined by OMVE as the “Diamond Decision Assets” and to engage in the manufacture and sale of men’s and women’s clothing. The assets purchased were inventory, equipment, customer lists, domain names, websites, copyrighted materials, and trademarks. The purchase price to be paid by Omni Ventures to Agile for the assets was 16.5 million shares of OMVE common stock and a $325,000 senior secured promissory note to Agile due November 14, 2011, bearing interest at 9% that was secured by substantially all assets of Omni Ventures.
Management completed a valuation of the consideration paid and the assets acquired and determined that, based on the fair value of the assets acquired as the more reliable measure, the total value of the assets acquired was $569,088 and the value assigned to the shares paid was $0.0976 per share. In accordance with ASC 805-50-30 for acquisition of assets rather than a business, OMVE used the relative fair value method of allocating the fair value to the assets acquired. Furthermore, since the valuation method used the fair value of the assets acquired as the more reliable measure, 14 million of the 16.5 million common shares paid were expensed as $1,366,892 of transaction costs.
Hence why we decided that when we saw OMVE trading at the same price level as the acquisition price, alerts had to be sent out about the penny stock of Omni Ventures Inc.
OMVE Historical Stock Prices Since Mar. 7 Alert
Recent OMVE News:
April 25: announced that PRVCY Couture product line will be available to the Army and Air Force Exchange Service (AAFES). (see here)
April 23: announced that Michael Berk, celebrated Emmy and Golden Globe nominated producer, writer and director, will co-chair the Advisory Board of PRVCY Couture. (see here)
April 17: announced that the former wife of Charlie Sheen, Denise Richards, has tweeted about her new PRVCY jeans to an estimated 2 million followers on Twitter. (see here)
April 16: President of OMVE, Mr. Christian Wicks, will be attending sales-related meetings in New York and Chicago to expand the sales and marketing of PRVCY Premium denim brand as well as the development of additional offerings. (see here)
March 20: announced that PRVCY Couture has completed the restructuring of its senior management team, implemented new production and sales policies, as well as upgraded its operational infrastructure to insure the continued production and sales of its PRVCY Premium denim products and tops.
Bottom Line: Last year, 71% of Americans bought at least one pair of jeans even in the economically depressed consditions the retail market excperienced. Considering the global brand marketing plans of OMVE for their PRVCY jeans, there are tens of millions of possible buyers of this Hollywood trend setting fashion line.
OMVE is a must add to the list of penny stocks to watch. As you can see from the table above, we may not have sent out the alert for OMVE being the best penny stock picks of the week at the lowest point, but we hit the nail on the head with a stock that has gained and held better than SNPK, RSRS, SEFE, LUXR, and even JOEZ since March 7th. 441% gains and counting.