Parlux Fragrances, Inc. (PARL)

foolishfun4me (< 20) Submitted: 9/20/2008 4:52:10 PM : Start Price: $4.92 PARL Score: -39.95

PARL is my favorite stock pick at the moment. Here is a quick and dirty as to why:

- No debt.
- Book value per share of over $5 with $1 in cash.
- Major fragrance launches as follows: Jessica Simpson - August 2008, Paris Hilton (Fairy Dust) - October 2008, Nicole Miller (Frenzy), January-March 2009, Guess (men) Spring 2009, Queen Latifah Fall 2009, Second Jessica Simpson fragrance Fall 2009 and Nicole Miller Late 2009.
- For the critics, Queen Latifah is a Cover Girl and has her own line called The Queen Collection. Cover Girl is owned by Proctor and Gamble and they know a thing or two about consumer products and marketing.
- A major fashion retailer license signing is expected shortly per the CEO on the last earnings call and the CFO at an investor presentation.
- There are less than 21 million shares outstanding.
- Insider buys include 16k shares by the CEO, 10k shares by the CFO and an exercise and hold by the COO of hundres of thousands of shares.

acctgfin101 (< 20) Submitted: 9/8/2008 3:06:08 PM : Start Price: $6.93 PARL Score: -56.82

Stock saw 202% increase in past few weeks. Low price attributed to accusations of fraudulent accounting activity in 2007, which proved untrue (fell from $16 to $3). Company is under new management and is releasing several new products. Target market is looking for less than designer prices for fragrances. Also, very low debt ratio.

AW2580 (< 20) Submitted: 4/14/2007 9:34:42 PM : Start Price: $5.00 PARL Score: +37.86

No cash flow, too much debt.

NetscribeConsGds (94.46) Submitted: 2/16/2007 7:56:38 AM : Start Price: $6.79 PARL Score: +46.43

Parlux Fragrances is engaged in the creation, design, manufacture, distribution and sale of prestige fragrances and beauty related products, marketed primarily through specialty stores, national department stores and perfumeries on a worldwide basis. The company holds licenses to manufacture and distribute watches, cosmetics and handbags, purses and other small leather goods, and sunglasses as well as to manufacture and sell fragrances.

The life cycle of fragrances has shortened dramatically in recent years. Customer loyalty towards the brand has reduced over the years and customers are experimenting with different brands within a short span. Hence, fragrance players are launching new products at a faster rate to fend off the competition. Companies are incurring huge marketing expenses and undertaking promotional activities, which is affecting the profits of the company. Parlux had delivered impressive topline growth of over 81% for the year ended March 2006 thanks to the brand prowess of Paris Hilton, XOXO and GUESS? fragrances. However, since then Parlux has not been able to deliver strong results owing to 41% surge in advertising costs for period ended June 2006 and lower royalties on non fragrance products that are eroding the bottom lines of the company.

Parlux has received a delisting notice, as it has been quite delinquent in its regulatory filings. Company has announced plans to buyback 10 million shares in order to remain listed. However, they have not initiated any action regarding the same and the woes of delisting still prevail. Sale of slowing Perry Ellis Fragrance brand to Perry Ellis International has generated funds for the company. However, given the above factors, Parlux looks to have lost its momentum and has no solid initiatives that could stimulate further growth. Hence, Parlux Fragrances does not provoke an exciting investment opportunity considering the one-year time.

modj97 (< 20) Submitted: 12/31/2006 8:55:13 AM : Start Price: $5.64 PARL Score: -41.40

Bullish:
http://finance.yahoo.com/charts#chart13:symbol=parl;range=3m;indicator=psar+macd+stochasticfast+rsi;charttype=candlestick;crosshair=cross;logscale=on;source=undefined

RedAlgae (< 20) Submitted: 12/7/2006 9:02:49 PM : Start Price: $5.79 PARL Score: -43.11

With extra 63m in cash from Perry Ellis deal, balance sheet issues are behind them. Will be able to squeeze the 6.3m shares short once buyback starts. Will be able to focus on growth areas (Paris Hilton, Guess, etc.).

ipo07 (< 20) Submitted: 11/28/2006 12:08:08 AM : Start Price: $6.43 PARL Score: -48.72

Current management will lose the proxy fight inside of 3 months. After that, the company should earn $.80-1.20 per share and double from its current price.

razor2k00 (< 20) Submitted: 10/24/2006 3:14:32 PM : Start Price: $6.66 PARL Score: -50.57

Bought into PARL at near basement price, based on our proprietary stock picking algorithm, in September 2006. This is a really funky issue with lots of behind-the-scenes intrigue. There is a huge amount of pressure trying to push the price of this issue up. Our target is $ 12 over next 6 - 12 months.

norrab1 (20.76) Submitted: 10/6/2006 3:13:03 PM : Start Price: $5.74 PARL Score: -46.81

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.

Junkyardhawg1985 (96.54) Submitted: 9/27/2006 7:15:26 PM : Start Price: $5.55 PARL Score: -46.01

Excessive short position that will cover. High growth, low P/B, low enterprise value to revenue.

mpfd33 (66.24) Submitted: 9/13/2006 3:18:15 PM : Start Price: $5.60 PARL Score: -49.62

Hmmm....At this price I need to see this out. Many funky things seem to be happening here. (I did sell some over $37.50 (pre-split)).

FutureHFGuy (< 20) Submitted: 9/13/2006 3:27:43 AM : Start Price: $5.65 PARL Score: -48.47

Sale of Perry Ellis brand provides some capital to shareholders. Operating cash flow should remain positive in the other businesses which you are essentially getting for free. I like free.