NOOF: What's the inside track? Gonzo? Anybody?

[EmporerEJ]

OK boys and Girls....why did NOOF take a great big shit at the end of August, dribble on down, and is now trading close to it's 52 week low? Beyond the piss poor earnings statement?

I know somebody out there knows what's going on. Spill it.

Baby needs a new pair of shoes!

[gonzo]

Andrew Conru says he wants to retire when hes 40 which is Feb 2008.

[RawAlex]

A drop in revenue from pay-per-view movies cut into New Frontier Media Inc.'s profits in its second quarter.

The Boulder company (NASDAQ: NOOF) closed the second quarter of its fiscal year on Sept. 30. New Frontier Media produces and distributes adult movies.

The company's largest revenue source -- from pay-per-view entertainment -- declined by 33 percent, to $5 million, from last year. New Frontier said a renegotiated agreement with a "key" customer in October 2006 means the company is getting less money from "our historical revenue split."

New Frontier Media did not identify the customer.

The 33 percent drop in pay-per-view revenue pushed the company's total revenue down to $12.4 million from $16.2 million a year earlier. For the first six months of the fiscal year, revenue dropped to $25.3 million from $32.4 million a year earlier.

New Frontier Media said profits fell to $2.1 million in the second quarter from $3.6 million a year earlier. For the first half of the fiscal year, profits declined to $3.6 million from $7.2 million a year earlier.

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Revenue took a shitkicking, and as a result profits dropped in half. It would appear that deal that they redid the revenue split on apparently significantly impacted revenue.

[Hell Puppy]

NOOF has been pretty quiet for a long time. Only real noise they've made this year is a deal to do Penthouse TV. Gee...seems a lot of activity for Penthouse this year despite rumors of being broke a couple of years ago...hmmm.... Some angels there perhaps?

Just evaluating NOOF as I would any other stock, it looks undervalued, and looks to be a good buy at $5 or less.

In this sector though, I like Playboy better, it's a good buy anytime it dips below $10. Much stronger brand name, and they've been actively at least attempting to grow in the new media segment. Easy to sit back and criticize their moves, but being a public company makes anything they do a slippery slope.

[EmporerEJ]

Thanks guys....good points....

Looking at its chart, I see it shit-cans every few years in Nov-Dec. It's doing it again. If it follows this pattern, it should hit $1-1.50 before rolling back up to a respectable 8-10 dollars.

And if Gonzo's on the nose, maybe that's exactly what's happening here.

I'm just wondering.....looks like a fairly safe buy unless it goes to crap in February on exit?

[EmporerEJ]

Originally Posted by Hell Puppy

NOOF has been pretty quiet for a long time. Only real noise they've made this year is a deal to do Penthouse TV. Gee...seems a lot of activity for Penthouse this year despite rumors of being broke a couple of years ago...hmmm.... Some angels there perhaps?

Just evaluating NOOF as I would any other stock, it looks undervalued, and looks to be a good buy at $5 or less.

You're thinking the 4 year resistance level? The only thing that worries me is it's dipped below that for the first time in that period. I was hoping there was a specific, temporal event, that caused it.

[EmporerEJ]

Originally Posted by Hell Puppy

In this sector though, I like Playboy better, it's a good buy anytime it dips below $10. Much stronger brand name, and they've been actively at least attempting to grow in the new media segment. Easy to sit back and criticize their moves, but being a public company makes anything they do a slippery slope.

I see what you mean about Playboy. Near the bottom at a fairly predictable roll. But do you like it better because it's arguably a more stable and well known company? Or something else?

For my investment dollar, it would seem I have more profit potential with NOOF?

[RawAlex]

Originally Posted by Hell Puppy

NOOF has been pretty quiet for a long time. Only real noise they've made this year is a deal to do Penthouse TV. Gee...seems a lot of activity for Penthouse this year despite rumors of being broke a couple of years ago...hmmm.... Some angels there perhaps?

Not sure about that, but there has been an extraordinary amount of traffic of Lincoln town cars going in and out of their offices recently. Perhaps some VIPs are visiting?

[EmporerEJ]

Originally Posted by RawAlex

Not sure about that, but there has been an extraordinary amount of traffic of Lincoln town cars going in and out of their offices recently. Perhaps some VIPs are visiting?

Got an eyeball on their building do you??

[RawAlex]

Originally Posted by EmporerEJ

Got an eyeball on their building do you??

I got the ear of the man who know they guy who has the phone number of the girl who has acces to the camera that keeps an eye on the building...

[EmporerEJ]

So, to revive an old thread, rather than make a new one-

Now, come last annual conference, in August, New Frontier Media announced the plans for a stock buy back program, since the stock is in the crapper.

Guess what...that's just what they are doing. As the stock drops, along with their earnings, they are buying back chunks of stock. They recently lost one of three channels on Direct TV, and earnings are down across the board on all departments.
(They also don't seem to want to talk about this)

The Direct to consumer division, which includes their website ten.com, has been losing money steadily for several years now.

Thoughts? Analysis?
Anyone want to discuss deeper?