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No. of Recommendations: 13
Look into PARL (Parlux Fragances) that makes (under license) designer fragrance brands of Perry Ellis, Ocean Pacific, Beverly Hills, and JOCKEY.

5.80 of BV/share (price to book of 0.56)
No Debt
4.42 Price/FCF
Total Common Shares Outstanding (past 5 years, in million shares)
8.55 9.98 9.97 10.27 13.81 (major share repurchases)

I grant profit margin and ROE has been far from ideal, but it's a cheap company that has been a target for acquisition not too long ago.

And then things get truly sickening:


Ilia Lekach, CEO got 500,000 LEAPS (expiration 2012) accounting for 71.4% of options granted (and some 6% of outstanding shares)

Frank A. Buttacavoli, COO/CFO got 200,000 LEAPS (expiration 2012) accounting for (you guessed it) 28.6% of options granted.

Mr Lekach has 30,9% of the company and the 2 together hold 2,118,000 options. Considering the 8,55 million shares outstanding, it shouldn't be long for them to take over the company thru (in part) excessive option grantng.

I forgot to mention that Lekach himself, made a tender offer for the company, after which he and the company was promptly sued in a class-action suit.

In all excitment, I forgot to mention that if there's change in management, the golden parachute is assured by among other things a doubled salary and options.

So it all comes down to a simple strategy: drive share prices down by acting irresponsible, use cash flow to reduce float, grant yourself more and more options, and take over the company.

Truly disgusting.

-< CB >-

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