Penthouse to Offer $250m IPO

[gonzo]

Originally Posted by ali25extreme

Your balls are crystal? Sweet! ...

They have been a little cloudy as of late though.

[miz_wright]

... that barely even qualifies as a small-cap stock, and most funds won't bother touching it in quantity.

So... Um... Who's gonna buy it? Volume's incredibly low in the adult public offerings, and the p/e is generally wacked.

[RawAlex]

Considering that Penthouse (previous company) went tits up in a pretty serious way, and that most print magazine and news companies are suffering greatly due to loss of advertising revenue... I think this one is all wish and very little reality.

I will say this: if they have 250 million of debt on their books against less than 400 million gross revenue, they are probably having a tough time moving ahead, and certainly getting that debt off the books would be a move to make the company financially much more sound.

I think that taking the company public again is part of the deal with Andrew on all of this: Pay us $X now, and give us X millions of shares in the new public offering of penthouse at a significantly lower price than the intial offering. Let us make out money by slowly but surely selling off our interests.

Andrew always wanted to take AFF public, but knew that a pure internet porn play wasn't going to float. Putting under the Penthouse name makes it also palatable to a larger group of investors, the same ones that would buy Playboy stock.

[gonzo]

Originally Posted by RawAlex

Putting under the Penthouse name makes it also palatable to a larger group of investors, the same ones that would buy Playboy stock.

I have a large chunk of Playboy stock and I wouldnt even consider the new den of thieves at Penthouse.

Not even Earl Miller can save this one.

[Toby]

What will happen to the stock price when AFF gets sued for actively supporting content piracy? Being a publicly held company may actually make it easier to get them to settle rather than spend years in court.

[Hell Puppy]

I'm sure they think with the insane valuation that Facebook has, they should be able to see some hefty valuation based on AFF.

Going public gives you some interesting finance and buy out options. Anyone have anything they wanna sell for a fraction of what it's worth a ton of highly speculative stock?

I haven't looked at the IPO or crunched the numbers for the simple reason I wouldn't touch them with a 10 foot pole. In my opinion, the principles involved have a bit of a reputation for short term thinking....I dont see them wanting to build and grow so much as cash out what they already have. Investors at some point could potentially be left holding the bag.