Playboy has taken a beating, but truth be told I just don't see them disappearing. Lets face it; if they made it all the way to now (and I mean through the recession) I think it's safe to say that they will still be around for a bit. Besides that, this magazine is read by everyone from husbands to their children who come across them, and I don't think consumers nor investors will let them die.
So could this be a great deal right now? Maybe, let's look into it just a bit.
- Playboy (PLA)
- They're restructuring right now. Since the beginning of 2008 Playboy has been surprising earnings... to the down side. February 18, 2010 alone was -0.83 vs. the estimate of only -0.01; wowzers. This is necessary.
- What's interesting is that while they have been reporting horrendous earnings the price of a share of stock in PLA has risen over 200%. (I told you consumers and investors won't let them go)
- Robert Campbell was recently designated as being the company's new "Principal Financial Officer" (CFO). He's been with Playboy since 1992 so he is bound to know what needs to be changed to get back to the good.
- They're open to selling. This means a premium paid on the stock if it were to happen in the future and a nice gap up. Now (or soon) would be the time for an outside investor to snag it up while its trading at 3.44 a share for a total Market Cap of $115 million; they already missed its low of 1.03.
- Krames
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