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Is it a good idea to buy stock when Penthouse has its IPO?
It's a really hard decision.
Penthouse To File For $250 Million IPO
(www.paidcontent.org)
Hell Yeah
Side Score: 3
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Noway
Side Score: 6
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Sex sells. Always has, always will. Every red-blooded male knows about penthouse. How cool would it be to see penthouse on the newsstands and know that you own some of that? Maybe their stock certificate will even have some sexy graphic so I can hang it on the wall.
Side: Hell Yeah
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Aside from the novelty factor, Penthouse doesn't have much of a draw. It lacks the long-term interest that the higher quality magazines, like Playboy, commands of its readers. The only money to be made is if by some chance it jumps on the day of IPO and you dump it. There's a reason they're looking to resolve "indebtedness" and investors don't generally seek growth opportunities in companies that lose money. If I want to see random dirty parts, I'm going to the internet where they move and are generally getting crammed with strange objects. I read Playboy for the articles and contrary to popular belief, you have to have actual readers to make money for your investors.
Side: Noway
According to the press release: “The net proceeds of the offering will be used primarily to discharge existing indebtedness. The size, nature and manner of the offering are subject to change.” Doesn't sound like a growth opportunity to me. But, then again, Penthouse does have a brilliant track record for growing things.
Side: Noway
Wow, so many puns in such a short time, well done Loudacris!
I've heard through various media outlets that Penthouse has given up their more hardcore visuals in lieu of being more tasteful. If they're trying to play that game vs Playboy, I see some shrinkage in its near future. Side: Noway
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