...To write about smut.
KIDDING. There actually is a reason to talk about Playboy (PLA) today.
Playboy (PLA) shares are up 26% on serious volume, trading about 1.6million shares not even halfway through the day. Rumors are flying that the company may sell itself to Iconix Brands (ICON).
In the most recent quarter, Playboy demonstrated much improved operating performance in all three segments, at least from a margin perspective:
But the actual magazine results are HORRIBLE -->>3rd quarter revenue for the domestic magazine were down 44%, a huge "downside acceleration" compared to the 9month period drop of 22%.
Iconix is usually quite savvy about picking up great brands from motivated sellers (recently, they took Ecko off the hands of its idiot founder whose profligate spending led him towards insolvency). But the market is voting with its feet today, and they're not of the opinion that there's much value left for a purchaser of Playboy. ICON shares are off 4.5%.
Copyright 2009 AlphaNinja