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.

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Member Avatar rodessa (33.83) Submitted: 10/19/2011 5:02:31 AM : Outperform Start Price: $3.20 PARL Score: +25.54

Company could be bought in the coming months and the income should benefit of increasing expenses in marketing during the previous quater.

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Member Avatar acctgfin101 (< 20) Submitted: 9/8/2008 3:06:08 PM : Outperform Start Price: $6.93 PARL Score: -79.61

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.

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Member Avatar AW2580 (48.55) Submitted: 4/14/2007 9:34:42 PM : Underperform Start Price: $5.00 PARL Score: +35.92

No cash flow, too much debt.

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Member Avatar NetscribeConsGds (97.97) Submitted: 2/16/2007 7:56:38 AM : Underperform Start Price: $6.79 PARL Score: +60.21

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.

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Member Avatar modj97 (< 20) Submitted: 12/31/2006 8:55:13 AM : Outperform Start Price: $5.64 PARL Score: -46.12

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

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Member Avatar RedAlgae (< 20) Submitted: 12/7/2006 9:02:49 PM : Outperform Start Price: $5.79 PARL Score: -49.98

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.).

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Member Avatar ipo07 (< 20) Submitted: 11/28/2006 12:08:08 AM : Outperform Start Price: $6.43 PARL Score: -63.01

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.

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Member Avatar razor2k00 (< 20) Submitted: 10/24/2006 3:14:32 PM : Outperform Start Price: $6.66 PARL Score: -67.27

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.

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Member Avatar norrab1 (23.45) Submitted: 10/6/2006 3:13:03 PM : Outperform Start Price: $5.74 PARL Score: -56.46

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.

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Member Avatar FutureHFGuy (49.55) Submitted: 9/13/2006 3:27:43 AM : Outperform Start Price: $5.65 PARL Score: -59.02

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.

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Member Avatar XMFSarah (99.30) Submitted: 9/11/2006 3:09:38 PM : Underperform Start Price: $5.82 PARL Score: +64.67

Management just seems too shaky for comfort here.

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