Parlux Fragrances, Inc. (NASDAQ:PARL)

CAPS Rating: No stars

The Company is engaged in the creation, design, manufacture, and distribution and sale of prestige fragrances and beauty related products.

Recs

3
Player Avatar norrab1 (24.51) Submitted: 10/6/2006 3:13:03 PM : Outperform Start Price: $5.74 PARL Score: -53.13

Parlux goes under the category of "This can't possibly get any worse". According to YF, it is now selling at a 5 forward P/E and a unity P/B ratio. Everyone knows this is one of the worst-managed companies around, but the selling has been overdone by a wide margin. Here's what I mean: Parlux is sitting at a $100 million market cap with a deal on the table to sell their Perry Ellis line for $140 million. Hello! PE is roughly 40% of the business, so if you do a little math and apply that price multiple to the rest of the business, you have a net asset value of around $300 million, or $18/share! Granted, I realize the economics aren't that simple, but it stands to reason that the company should be valued at at least half that price, bad management or not. There is blood in the streets, but when the deal goes through, shorts will be running for the exits.

Member Avatar thebigbeaty (< 20) Submitted: 8/26/2008 9:30:00 PM
Recs: 0

EVER HEARD OF HANNA MONTANA! PARLUX WILL RECIEVE ITS SECOUND UPGRADE ON WED.! THE BUYING POWER OF NINE TO SIXTEEN YEAR OLD GIRLS SHOULD NOT BE UNDER ESTIMATED! HANNAH MONTANA A HUGE CHILD STAR CRANKS OUT MILLIONS EVERY DAY AND THE PROFIT MARGIN ON CHEAP PERFUME IS HUGE! THIS COMPANY IS GROWING AND CHRISTMAS ORDERS ARE OFF THE HOOK!

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