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Reflections On Adults Only Media Stocks

My definition of adults only media stocks would be producers and/or distributers of adult related material registered under US Code 18-22-57, with a custodian of records. There are probably only so many ways to package this type of material; so, establishing a true competitive edge could be difficult. Examples of these companies, in my opinion, could be Private Media Group and FriendFinder Networks. When I attempt to look at the financial data for these types of names, I recognize nothing meaningful to me as regards tangible asset valuations or measurable profitability, again in my opinion. However, if there would be value to be found, I would begin to look in the intangible category, as these companies most likely would continue to own some rights in whatever they produce.

New Frontier Media would be another example, but it looks like they were bought out. Here, I believe there could have been value to be had in its distribution network.

As in many speculative pursuits, beauty could be in the eye of the beholder.

When I shift gears to Playboy Enterprises, you are dealing in a totally different world - this is an established media company with meaningful financial statistics and relatively traditional management. Playboy was taken private several years ago, but I used to own the stock, and like the company.

As in many speculative pursuits, beauty could be in the eye of the beholder.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.