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5:08 pm
February 4, 2010
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Jae Jun
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I'm in the process of writing something on PARL. I don't agree with the overall article.
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1:06 pm
February 4, 2010
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Ryan B
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| Member | posts 21 |
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5:40 pm
February 1, 2010
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Ryan B
| | Toronto | |
| Member | posts 21 |
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Parlux Appoints New Chairman and CEO
As I wasn't a fan of previous management team (mainly the CEO) and I tend to get nervous when a sudden change in the executive team takes places, specifically the CEO, I will be selling my position and taking a small loss. :(
Press Release:
"Parlux Fragrances, Inc. (Nasdaq:PARL) announced today that Mr. Neil J. Katz has resigned from his position as Chairman and Chief Executive Officer of the Company due to philosophical differences regarding the future direction of the Company. Mr. Katz had held this position since July 2007, and has been instrumental in acquiring a number of new licenses during this period. Mr. Katz, who is expected to remain with the Company as a Director and consultant, stated, "A number of opportunities have arisen which require my attention. Parlux is a fine company, and I anticipate being able to assist the Company during this transition and in the future."
The Board announced that Mr. Frederick E. Purches, founder of the Company, and previous Chairman, has assumed the position of Chairman and Chief Executive Officer. Mr. Purches, who was previously President and CEO of Helena Rubinstein/Giorgio Armani Fragrances before founding Parlux, and has served as a consultant to Parlux for several years, said, "The Company has a knowledgeable, experienced staff of devoted employees, and I am pleased to take a more active role in Parlux's future growth and its return to profitability."
http://www.sec.gov/Archives/ed…..elease.htm
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3:48 am
November 21, 2009
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Jae Jun
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Basically, the company is going to issue 30-40million shares. Current shares outstanding is 20m so they are going to dilute it by more than 2 times.
It's called dilution where you now own less and less of the shareholder's equity.
The 2nd proposal is interesting. They ware issuing warrants 1m to Rihanna or her company and another 1m to Kanye West. Another 6m to a couple of others as well. All at prices of $5 which means the company probably thinks they are worth about $5.
Not too keen on the big share dilution…
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3:55 am
November 20, 2009
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Zefiro50
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SEC Link: http://www.sec.gov/Archives/ed…..c231689720
Hi,
PARL has recently released a proxy statement regarding their current financial credit tightness
I was wondering what the 2nd proposals is and how it will affect the shareholder's value?
Proposal No. 2 Warrant Issuance Proposal
Thanks.
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8:36 pm
October 21, 2009
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Ryan B
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| Member | posts 21 |
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Floris I concur. I think we have a similar thought process on this particular investment. If another more lucrative idea comes along and I need some additional capital, I will not hesitate to sell off my small position in the company.
Jae I agree, operates in a very touch segment.
The company recently added to its product mix by adding some big headliners. I heard recently that Oprah Winfrey recently complimented Jay-z on his cologne on her TV show. (Which can’t hurt ;))
Assets should work as a back stop to the company. Definitely not a long-term hold (1-3yrs) and not more than 5%.
I believe this to be a low-risk, high-uncertainty business – "heads, I win; tails I don't lose much" Mohnish Pabrai
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6:22 pm
October 21, 2009
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Jae Jun
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Considering the risk and opportunity, I would probably classify it as another IGOI type investment.
Bad business and economics but cheap enough to profit.
IGOI recently released earnings and they weren't good, so it's dropped back down to my sell price. This was expected considering their product.
PARL would be similar. So if PARL is at least 20% below liquidation value, and not just Net Asset Value, then it may be a pretty good short term opportunity with a small amount of capital.
Certainly wouldn't be putting 10% or more into it.
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1:53 pm
October 21, 2009
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Floris
| | Rotterdam, Netherlands | |
| Member | posts 30 |
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Post edited 5:56 pm – October 21, 2009 by Floris
Hey there,
I had a look at this stock 3 months ago. I passed because there were better deals out there back then. Considering it hasnt risen since then, and the rest of the opportunities have, I don't think its a bad investment. There is a massive amount of net working capital backstopping any further losses in the future and one fragrance could become popular and turn this company around. There is a lot of uncertainty (which is nice) and a lot of assets to increase the MoS.
As it stands it isnt a great company. If you were to invest in such a stock Id recommend pairing it with a couple (say 3-4) stocks trading at similar levels (good luck with todays prices), to capture the uncertainty effect while limiting the downside by placing multiple bets. This is not a stock you should put 50% of your portfolio in, but a small diversified portfolio of low priced value plays would probably yield satisfactory results.
Thats just my two cents,
Reg,
Floris
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12:47 am
October 19, 2009
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Ryan B
| | Toronto | |
| Member | posts 21 |
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Parlux Fragrance
Please read this write-up by Barel Karsan for a good and quick overview on this particular value play: http://www.barelkarsan.com/200…..value.html
Quick points:
$MIL
Cash 6.6
A/R 30.7
Inventory 66.7
Total Current Liabilities 26.2
No Long-term debt
Market cap $39 Million
Currently negative owner earnings, but slowly improving
Experienced CEO is now in control of the company, Previous CEO destroyed shareholder value.
I will complete a more thorough report on this company when time permits.
Any and all thoughts/analysis would be appreciated
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