Steel Partners Goes Porno With New Frontier Media (NOOF)

The MicroCap Speculator submits: When James Altucher first started writing columns about activist hedge fund Steel Partners early this year in his excellent column on RealMoney.com, I set up an alert to let me know whenever Steel Partners filed anything with the SEC. (You can do the same if you are a subscriber to 10kwizard.com or any of its competitors.)

I received an alert that Steel Partners filed a Form 4 regarding its position in New Frontier Meida (NOOF). NOOF is a major provider of adult material via pay-per-view (PPV) and video-on-demand (VOD). To a much lesser extent, it also sells porn over the Internet. Generally when Steel Partners gets involved in a company, they press management to trim expenses and explore strategic alternatives. On August 16, 2005, New Frontier announced that it hired an advisor to do just that.

The November 1st filing indicates that Steel Partners has increased its NOOF position by roughly 300,000 shares. I don't have an exact calculation but I am guessing that Steel Partners now accounts for around 13 or 14% of outstanding shares. Clearly this is a vote of confidence. It is good news for NOOF shareholders, who have taken a drubbing over the last 9 months.

I'll keep an eye one this one (the stock not the product, in case my wife is reading!)

DISCLOSURE: I have no position in NOOF. Not a recommendation to buy or sell any security. For informational and educational purposes only.

Related:

• Other articles about NOOF.
• The complete list of media stocks covered by The Media Stock Blog.
• A list of full conference call transcripts available on the Seeking Alpha Network.

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