Sunday, February 27, 2011

Sexy Stocks

The adult entertainment business has always been a recession-proof industry. In spite of the 'free' competition from the Internet, many sources say that the industry has been growing by as much as 50% per year. turned up a dozen companies in the sex business, including a couple that own brothels.

The classic adult oriented company, Playboy (PLA) is a New York Stock Exchange company that participates in almost all aspects of the industry including magazines, DVD’s, television shows, documentaries, web entertainment, e-commerce sites, and various Playboy brand products. They also own the Spice TV shows and related products. It is considered to be the largest adult entertainment conglomerate in the world. The company recently generated negative earnings, and revenues for the latest quarter were down 9%. The stock has a price sales ratio of 0.96, and a price earnings growth ratio of 1.12.

New Frontier Media (NOOF) is a Boulder, Colorado based company, traded on NASDAQ, which provides adult entertainment TV networks, cable television video-on-demand, satellite broadcasts, motion pictures and hotel room broadcasts. It trades at 12.2 times forward earnings and a PEG Ratio of 5.15. The price sales ratio is 0.75.

Rick's Cabaret International (RICK) is a Houston, Texas based company which operates adult nightclubs in cities throughout the United States including Houston, New York, Las Vegas, Charlotte, Miami Gardens, and Philadelphia. The stock trades at 11.2 times forward earnings, and has a PEG ratio of 0.32, and a PS ratio of 1.28.

To see the rest of these sexy stocks, check out the free list of adult business stocks at Many of the publicly traded stocks in this business are low cap companies, so caution is urged when considering these.

Disclosure: Author owns RICK. No recommendation expressed or implied.


No comments: