Friday, May 22, 2009

Playboy Who will Pay a 300% Premium

Playboy (NYSE:PLA) is shopping itself for $300 million but trades at $100 million. Tough to justify the premium. Hefner says he would not let it go for anything less. Hef you are an old man who has lived well and hard. You are around 80 and will probably pass away in a few years. Your estate will have to settle for less just to pay the taxes. You are disrespecting the other shareholders by your intransigence. Does the board not play a role here? The stock has dropped dramatically. The last few bus drivers did not create shareholder value. When will the remaining shareholders sue? Wealth has been destroyed not created.