Bold-faced names in the filings…

April 7, 2010

While we don’t usually pay much attention to companies under $250M in market cap, there was something about the 10-K filed by tiny Industry Concept Holdings (INHL) that caught our attention. It wasn’t just because it was filed late on Friday on a day when the market was closed, though that certainly piqued our initial interest. But as we started to skim the filing, we realized that it seemed to have more in common with Page Six or People Magazine than the typical dry SEC filing.

That’s because the filing was a virtual panoply of bold-faced names. Brad Pitt and Angelina Jolie were mentioned in the filing when the company noted that “One of Brad Pitt and Angelina Jolie’s toddlers wore Primp in the 2008 —People magazine spread, the most expensive celebrity photo in the magazine’s history.” So too was Sasha Obama, who the filing notes wore “a Primp hoodie for her first day of school following the move to the White House.” So too was Jessica Simpson, who currently hosts the VH-1 reality show, “The Price of Beauty”. Keep in mind that the biggest names normally found in most SEC filings are former Senators, Members of Congress, or Governors who, once they leave office, often find their way into some lucrative board of directors gig. And it’s hard to compare Tommy Thompson’s star-power to that of Brad Pitt, no matter how hard one tries.

Still, just like the annoying person at the cocktail party that insists on dropping A-list names to prove their self-worth, dropping A-list names in an SEC filing seems to be about as effective, at least judging by the company’s stock, which appears to have last traded on Feb. 10. Which just goes to show you: name-dropping will only get you so far.

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