PHSL Penthouse-International 02/19/04 Closed @ .103 # Shares traded = 1.4 Million out of 50 Million Shares Suggested entry point = .100 Web site www.penthouse-international.com Discussion: I had previously read that Play Boy Magazine was losing money and that there was speculation that it would go out of business, but then they started to make good money on the internet, and so I looked up their stock to seis $15 a share. On the other hand, Penthouse, which 9 months ago was $2.50 a share is now $0.10 a share. There was talk of bankruptcy, but that has been resolved and they are also going on the internet plus they have bought a large beach front property in Mexico and will be building facilities there. They also have 6 night clubs and are in the process of building 19 more. Their graph appears to have bottomed out at .10 If they go even halfway to their previous $2.50 price, that will be more than a 10 bagger, but I would guess that if they start making money on their various enterprises, that they will easily surpass their previous $2.50 high. If they eventually went to $10/share then $1,000 invested at $0.10/share would be worth $100,000. Whoa, you could buy a lot of tacos for that much money. Maybe even a car or two. P.S. I bought $1,000 at .10/share Here are a few articles about the stock. Penthouse to keep publishing
Bankrupt publisher files reorganization plan for men's magazine that will let it continue.
December 23, 2003: 2:09 PM EST
NEW YORK (CNN/Money) - Penthouse magazine publisher General Media filed its reorganization plan with the bankruptcy court Tuesday, a move it said will allow the continuation of the financially troubled men's magazine.
"We believe the continued publication of Penthouse is now ensured for many years," said a statement from Robert Guccione, chairman and CEO of General Media, Inc., the publisher of the magazine, who has announced plans give up his current post and serve the company as publisher emeritus for the next 10 years. The company said it expects to emerge from bankruptcy court protections by the end of February.
"This Plan of Reorganization will enable us to go forward as a financially viable enterprise with a manageable debt load," Guccione said in its statement. "It also represents an important vote of confidence on the part of our major creditors, whose support has enabled us to pursue this reorganization."
The company said the plan comes from discussions with holders of 89 percent of the company's 15 percent debt due next year. Those creditors would exchange those notes for 100 percent of the reorganized company's common shares along with $27 million in new debt at 13 percent interest rates.
Unsecured creditors, who together are owed $10 million, would receive $2 million in cash and $3 million in new notes.
General Media filed for bankruptcy in August, amid a Securities and Exchange Commission probe into the full-year 2002 and first-quarter 2003 results of its parent company, Penthouse International, as well as its accounting treatment of a Web site management agreement and changes in auditing or accounting services during 2002 and 2003.
Guccione will stay editor of Penthouse, although he will no longer be chairman or CEO of General Media. He also continues to own the majority of the shares of Penthouse International (PHSL: Research, Estimates), which is not included in this bankruptcy filing. But with the reorganization plans, those shares and other shares in the parent will essentially become worthless, owning only an empty shell corporation while control of General Media transfers to the current creditors.
OTC Financial Network Issues Favorable Report on Penthouse International
The Following Is an Investment Opinion Being Issued by National Financial Communications.
NEEDHAM, MA, Feb. 11, 2004 (MARKET WIRE via COMTEX) -- OTC Financial Network, a division of National Financial Communications Corp., announced today that it has issued an InvestorFacts Report on Penthouse International, Inc. (OTC BB: PHSL). The report on Penthouse International, a diversified holding company with operating subsidiaries in adult entertainment and real estate, includes a profile of the Company's business segments, diversified operating strategy and investment considerations. Interested parties can view the report online at http://www.otcfn.com/phsl/report.html or call 781-444-6100 x629 for reprints.
General Media, 99.5% owned by Penthouse International, has sought bankruptcy protection in order to reorganize its debt. Penthouse International and Del Sol Investments LLC, its real estate subsidiary, have no existing corporate debt. Penthouse International did not file for protection under the Bankruptcy Code and its activities are not subject to Bankruptcy Court supervision.
Geoffrey Eiten, president of National Financial Communications Corp., stated, "Through General Media's flagship magazine PENTHOUSE, the Company has accumulated a proprietary library of adult content consisting of approximately one million high quality, still photographic images and more than 90 original motion picture titles. Subject to General Media's emergence from reorganization, immediate availability of content is being leveraged to scale up its website and enter into partnerships with third party distributors. In addition, the General Media growth plans include opening roughly 25 gentlemen's nightclubs in the U.S. during 2004."
Eiten concluded, "With a diversified growth strategy that calls for penetrating multiple sales verticals, such as online and real estate, Penthouse is poised to enter a new phase of dynamic, long-term growth. Provided subsidiary General Media successfully emerges from its plan for restructuring, Penthouse is positioned for a major turnaround, delivering solid potential for appreciating shareholder value."
About Penthouse International, Inc.
Penthouse International, Inc., through its 99.5% owned subsidiaries General Media, Inc. and Del Sol Investments LLC, is a brand-driven global entertainment business founded in 1965 by Robert C. Guccione. General Media's flagship PENTHOUSE brand is one of the most recognized consumer brands in the world and is widely identified with premium entertainment for adult audiences. General Media caters to men's interests through various trademarked publications, movies, the Internet, location-based live entertainment clubs and consumer product licenses. General Media licenses the PENTHOUSE trademarks to third parties worldwide in exchange for recurring royalty payments.
CashcowMag.com Is Bullish on Penthouse International Inc.
NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by CashcowMag.com.
KELOWNA, BC, Feb. 18, 2004 (MARKET WIRE via COMTEX) -- CashcowMag.com announced today that it was bullish on Penthouse International Inc. (OTC BB: PHSL).
By initiating a change in direction Penthouse International Inc. may be poised for significant growth and substantial profits. The asset value, multiple revenue generating income streams and the Penthouse brand name make this company an attractive investment opportunity to consider.
PENTHOUSE INTERNATIONAL, INC. (OTC BB: PHSL) is one of the most recognized consumer brands in the world and is widely identified with premium entertainment for adult audiences. The company caters to men's interests including several trademarked publications, movies, the internet, location-based live entertainment clubs and consumer product licenses. General Media, of which Penthouse International owns 99.5%, licenses the PENTHOUSE trademarks to third parties worldwide in exchange for recurring royalty payments. With a focus on diversification, Penthouse recently acquired Del Sol Investment LLC, a Mexican real estate development company that holds or has rights to 370 acres of land with oceanfront property in Zihuatanejo, State of Guerrero, Mexico. This property, independently valued at $107M, will be developed to accommodate at least two beachfront hotel resort complexes, one 18-hole championship golf course and 2,500 residential units.
The Company's subsidiary General Media sought voluntary bankruptcy protection on August 12, 2003 in order to reorganize its debt and obtain a $6 million debtor-in-possession credit facility to continue normal operations throughout a restructuring period. The company estimates that it will complete its restructuring and emerge from Chapter 11 by the end of February 2004. Penthouse did not file for protection under the Bankruptcy Code and its activities are not subject to Bankruptcy Court Supervision. As for internet presence, PENTHOUSE.com is highly-trafficked and should become an increasingly important revenue-generating asset in 2004 and beyond. Multiple revenue streams can be driven including fees for subscription services, e-commerce, advertising, and sponsorships. Beginning in the third quarter of 2002, General Media licensed its trademarks to select adult entertainment clubs in consideration for a percentage of gross revenues. The Company now operates six nightclubs and has an additional 19 licenses that are pending approval by the Court. Nightclubs represent an emerging, high-growth business segment for the Company, particularly due to its impact on ancillary services. With a diversified growth strategy Penthouse is entering a new phase to build dynamic, long-term growth and at current levels, delivers solid potential for appreciating shareholder value.
For a full report on Penthouse International Inc. visit: http://www.cashcowmag.com/ticker_phsl.html
For additional information, reference is made to publicly available documents filed with the bankruptcy court to determine the most current status of all matters related to the bankruptcy case of General Media. The website of the Bankruptcy Court is www.nysb.uscourts.gov.
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