My notes from PHSL & investor relations:

PHSL/General Media is expected to emerge from bankruptcy proceedings shortly with $30M-$50M in working capital.

They expect to rapidly grow sales back to historic levels (PERSONAL OBSERVATION: Kmart did it after their “rebirth” from bankruptcy proceedings).

10Q and annual are being held up because “several chefs” are in the kitchen working on it. Drafts of both are circulating and changes/revisions are being made accordingly. There is A LOT to be said. As per recent PR:

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"The new management of Penthouse is committed to full and accurate disclosure to our shareholders. It is imperative that we provide the most complete information possible on Form 10K and our other public reports, and we have elected to take measured, disciplined steps to this end. Our shareholders will ultimately be the beneficiaries," said Claude Bertin, Executive Vice President and director of Penthouse. Mr. Bertin also noted, "Our majority shareholder and our institutional investors have demonstrated their support for Penthouse this quarter by their substantial financial commitments. Through our reorganization our operations have been intensely scrutinized and we are grateful that the support for Penthouse continues to this day," concluded Mr. Bertin.
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Annual report should show approx. 30M+ in revenue with an operating loss (no brainer-that’s why they filed for bankruptcy protection in October). 10Q will be MUCH better (they could not disclose the meaning of "much").

PHSL/General Media has taken 100 steps forward since October. The only 1 step backward has been the late filings. This however is due to the fact that they want to demonstrate the turn around and future potential in the company (obviously, they had to accomplish certain things first, i.e. Ibill acquisition, additional financing, etc).

Sources believe that 10Q and annual will be released quickly (meaning sooner rather than later). Immediate OTC re-listing will follow.

PHSL/General Media plans to continue publishing. They have turned down several ATTRACTIVE offers to acquire General Media.

They have acquired IBILL which should provide them with approx $30M+ annual revenue.

They have acquired several new financing deals totalling $116M.

They have acquired and are developing new resort property in the Mexican Riviera.

PR EXCERPTS:

…PENTHOUSE HAS DISCLOSED IN RECENT WEEKS DEBT AND EQUITY FINANCING COMMITMENTS TOTALING OVER $116 MILLION THAT IS TO BE PROVIDED TO GENERAL MEDIA AND PENTHOUSE BY ITS MAIN SHAREHOLDER, DR. LUIS ENRIQUE FERNANDO MOLINA, AND SEVERAL INSTITUTIONAL INVESTORS.

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Penthouse International (OTCBB:PHSL), a diversified holding company with operating subsidiaries in adult entertainment and real estate, announced today that its newly formed subsidiary, Media Billing LLC, has acquired from InterCept, Inc. (Nasdaq:ICPT), 100% of the equity of Internet Billing Company LLC. ("iBill"). The transaction, valued at approximately $23.5 million, included a $20.0 million assumption by Penthouse of certain obligations relating to iBill. Penthouse's majority shareholder, and an affiliate of a major U.S. insurance company have provided financial backing in connection with the transaction.

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Audited by Deloitte and Touche as part of the consolidated financial statements of iBill's former parent, InterCept, Inc., iBill reported revenues of $38.0 million and EBITDA of $5.7 million for the year ending December 31, 2003. On a pro forma basis, had iBill been consolidated with Penthouse for the full fiscal year ended December 31, 2003, Penthouse consolidated revenue would have increased by approximately 197%. As a result of this acquisition, Penthouse expects to realize an increase in shareholders' equity of approximately $23.5 million, or $0.09 per share. iBill's financial results will be consolidated into Penthouse in the first quarter of 2004.

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iBill was notified by its processing bank and VISA that it is the first IPSP to be released from the VISA RIS program. As a
result, iBill will no longer be assessed a monthly fee of $100,000, or $1,200,000 annually.

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iBill has entered into contracts to sell its transaction processing services to several new merchants representing
approximately $21.0 million in estimated new incremental revenues over the next twelve months.

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iBill has no corporate or bank debt outstanding. iBill and Penthouse International's real estate assets are unaffected by the current reorganization of General Media and subsidiaries.
Over the last five years, iBill has successfully processed over $2.0 billion in online subscriptions representing tens of millions of consumer transactions. iBill believes that thousands of iBill clients have demonstrated that the Internet is an efficient sales distribution channel for entertainment content. Founded in 1997, iBill has been cash flow positive for the past five years, and has positioned itself as one of the more profitable e-commerce business models born from the dot-com era.

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Penthouse International (OTCBB:PHSL) (FWB:PHSL.FK), a diversified holding company with operating subsidiaries in adult entertainment, Internet transaction processing and real estate, announced today that its 99.5% subsidiary, General Media, has agreed to license the Penthouse trademark for use on several existing adult night clubs owned by VCG Holding Corporation (OTCBB:VCGH). General Media will be paid monthly licensing fees based on a percentage of gross revenue of the Penthouse Clubs. Capital expenditures to convert the clubs will be born by VCG.
Penthouse International (OTCBB:PHSL), a diversified holding company with operating subsidiaries in adult entertainment and real estate, announced today that is has closed a $4.0 million private placement of convertible preferred stock to Mercator Advisory Group, LLC, through its designated funds, the Mercator Momentum Fund and the Mercator Momentum Fund III, both accredited institutional investors…

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In May 2004, Penthouse entered into an agreement with Access LLC to provide content to third generation (3G) mobile phones in Europe. Access is providing content to be distributed on the T-Mobile network, representing 440 million mobile phone users. Penthouse will share in the gross revenue of this venture.

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General Media has also completed the renegotiation of the lease on its corporate headquarters in Manhattan resulting in an annual rent reduction exceeding $1,000,000.

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IN SHORT, HAVE FAITH. A CHANGE IS GONNA COME, SOON!

Beware MM games!

Brand, this is one of my favorite stocks for 2004. And heres why.

If you will kindly take a look at the chart for PHSL, you will see that it was priced around 2.50 per share, and then their subsidiary, General Media, went bankrupt. They are currently restructuring the entire company, and once out of bankruptcy, the stock should see a very very dramatic increase in price. But here is the main thing that makes this security a buy anywhere near current levels.

The internet killed the porn publishing business. Why buy a magazine when you can go online and download movies? What PHSL has done, is made a significant shift in focus. They have shifted from their publishing to their online sector. The main acquisition that shows this is IBILL. If you dont know what IBILL is, consider it the paypal of internet porn. Many many porn websites all across the net use IBILL to bill their clients discretely. This is a huuuge industry and it is only gaining steam.

Now look at their last PR from Friday. They were delisted from the OTCBB because they were late with their 10K filings. This is due to the bankruptcy reorganization, a switch in auditors, and the many new exciting acquisitions. But the most important part of the press release on Friday is near the end.

"Penthouse also announced three additional business developments since March 31, 2004:
-- iBill was notified by its processing bank and VISA that it is
the first IPSP to be released from the VISA RIS program. As a
result, iBill will no longer be assessed a monthly fee of
$100,000, or $1,200,000 annually.

-- iBill has entered into contracts to sell its transaction
processing services to several new merchants representing
approximately $21.0 million in estimated new incremental
revenues over the next twelve months.

-- In May 2004, Penthouse entered into an agreement with Access
LLC to provide content to third generation (3G) mobile phones
in Europe. Access is providing content to be distributed on
the T-Mobile network, representing 440 million mobile phone
users. Penthouse will share in the gross revenue of this
venture. "

As shown by these three developments, IBILL is growing very quickly with millions and millions in revenue. And the mobile phone deal to provide content(I assume pornographic movies/pictures) could be absolutely huge. I strongly believe that once this company files their report and heads back to the OTCBB, it should see a very nice increase and price.

Further, once the judge speaks in July, and hopefully clears the General Media bankruptcy case, the security should see another very nice increase. This holdings company looks to be acquiring the necessary tools for future growth, which is why I see the share price eclipsing the 52 week high in due time. Also note that the Penthouse common stock is not of the company that is bankrupt. It is simply one subsidiary that is under the trading symbol PHSL.

As for the near term, I think we might see a decline to around .12 per share in the coming week until they file their 10K. I think this is an amazing buying opportunity for a short term(2-3 weeks) or long term(6-12 months) play.

Oops, forgot to add that I own this stock. I dont like posting things without disclosing my position. I have 31,000 shares averaged at .20 per share.

I had to create a new thread with a title that is indicative of the current situation. It is a sleeping giant that is about to awaken and investors need to know this.

I'm with you on this one (and have been for a few months). MM's are dragging it down as far as they can. Given the current circumstances, I say good.

I am accumulating on this one. We will have to use G-Force rankings to describe the force of this rebound once it begins.

For crying outloud, WHO DOESN'T KNOW PENTHOUSE! At these prices, it's a steal!

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IMHO - GLTA - Reductio Ad Absurdum