Home > News > Heads Turn for Playboy Shares, Adult Entertainment • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Heads Turn for Playboy Shares, Adult Entertainment

Heads Turn for Playboy Shares, Adult Entertainment
Get XBIZ News
Aug 25, 2004 11:14 AM PDT    Text size: 
NEW YORK — Wall Street analysts are high on porn. And in particular, they see Playboy Enterprises as centerfold-attractive.

Barron’s, the nation’s leading business weekly, wrote this week that more value investors are turning their heads to Playboy.

"Sex sells; in the long run you'll make money at it," says analyst Dennis McAlpine of McAlpine Associates.

Mark Boyar of Boyar Asset Management and a long-time Playboy shareholder has been buying shares because they are trading well below the $22-a-share estimate the company is reportedly worth, Barron's said.

Shares of Chicago-based Playboy were trading Wednesday at $8.73 on the New York Stock Exchange.

"If you tell me I could buy Playboy for $275 million [the current market capitalization], I'd do it day and night," Boyar said.

With a strong brand, solid balance sheet and a time-honored strategy, the 50-year-old Playboy is seen as a winner on Wall Street despite disappointing second-quarter results, leaving the stock hovering above $8, more than 50 percent lower than at the start of the year.

Playboy reported a second-quarter net loss of $8.3 million, or 26 cents a share, worse than the 19-cent loss analysts expected and the year-earlier loss of $900.000, or four cents.

The entertainment unit, which includes the Playboy Channel, saw a 64 percent drop in operating income.

Even though the figures look dim, CEO Hugh Hefner has said the company will show a profit for the year.

McAlpine said that could be just a penny a share, but it would be a dramatic turnaround from 2003's loss of 31 cents a share.

Playboy has been getting mainstream attention this month due to an article on the founders of Google.

The article, which ran in the September issue, prompted the U.S. Securities and Exchange Commission to request additional information about the interview.

After its publication, Google said in a regulatory filing that its founders' involvement in the article may have violated U.S. securities rules governing its then-pending initial public offering.

In related news, Playboy on Wednesday posted to its website an unpublished portion from its interview with Google's founders.

In the excerpt, Google co-founder Larry Page talks about Google's management structure.

A Playboy spokeswoman said that the section was cut from the original piece due to space constraints and that no other significant portions of text were left out of the published article.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

LEGAL PERSPECTIVES

Randazza: Trump Victory, Big Prop 60 Win

On Tuesday afternoon, I boarded a transatlantic flight. Given all of the negativity in the 2016 presidential race, I was delighted that I would be absent for the results. I found both Donald Trump and... More »

Dissecting an $11.9M Affiliate Marketing Judgment

The Federal Trade Commission scored another major win in early October when the 2nd U.S. Circuit Court of Appeals upheld a lower court ruling, requiring LeadClick Media LLC to pay an $11.9 million award. The... More »

Legal Protection for Amateur Shoots

Any adult industry professional who creates video content with actual first-time amateurs will come to an early knowledge that later performer regret is commonplace. Recognized performers who regularly... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec

Everything To Do With Sex Show

Jan 27 - Jan 29
Halifax, Nova Scotia

The European Summit

Mar 04 - Mar 07
Barcelona-Sitges, Spain

The TEA Show

Mar 05 - Mar 06
Hollywood, CA
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!