Iconix Brand Group, Inc. (ICON)

JAJR (90.22) Submitted: 4/04/08 11:41 AM : Start Price: $18.96 ICON Score: 17.03

They bought a lot of brands over the past 2 years at full value. Their business model certainly insulates them relative to bricks and mortar retailers in a recession but they will suffer but their relative multiple differential overcompensates for this. Some licenscees will go bankrupt. Also many of the license purchase deals assumed escalating rolyalties as sales grew (too justify the high acquisition prices and the targets will never be hit in the current environment.

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