Playboy Enterprises: Worthless, Part 2

2. PLA Stock is worthless

The price of a company's stock is a genuine indicator of what other people think about that business. It's the ultimate indicator of worth.

In this case, their stock is also worthless.

Playboy trades on the NYSE under the symbol PLA. At least, they used to. Earlier this year, PLA was informed by the exchange that they were in danger of being delisted because their market capitalization had fallen below the $75MM threshold. Delisted...as in...yes, they're a publicly-owned corporation, but on one wants to provide a market for people to buy and sell their worthless stock. PLA took this stinger like any company would: they petitioned the Securities and Exchange Commission to delete any references to the delisting from the annual reports they have to file with the SEC, normally available to the public..

To get a sense of how shitty this company's stock has performed, consider this: the company went public in 1971 with an initial closing price of $23.50. Yesterday, the shitty giant closed at $2.48. TWO FUCKING DOLLARS!!! If you adjusted for inflation, the stock would have to have closed at $62.39 just to maintain the same value it had in 1971. And that even takes into account a virtual two-for-one stock split in 1990, which the company had to perform in order to keep it alfoat.

Assumptions:
average inflation rate of 3.27% over the last 20 years
CPI estimates place a 1971 Dollar worth $5.31 today

Not to mention that the company has never paid a single dividend. Oh, except of the preferred shares Hef got when the company had to recapitalize itself in 1990. Basically, this shitbag had taken his investors for a ride. When he dies, the bunny will mean bubkus--he will effectively be a pronographic Bernard Madoff, who skimmed his company over and over again until he finally left them holding the bag.

Tomorrow: satellite porn and ClubJenna: also worthless