Is Parlux About to be Swallowed?
In case you didn't hear, Paris Hilton now moves markets.Wedbush Morgan raised Parlux Fragrances (PARL) to a strong buy this morning. The international designer of prestige beauty products and license holder for Paris Hilton perfume said on Tuesday that it expects full year 2006 earnings per share to be more than double prior-year levels on strong sales of its Perry Ellis and Paris Hilton fragrances. Wedbush reiterated its $43 price target on Parlux, which popped more than 7% in brisk afternoon trade.
Here is why you should be buying PARL hand over fist: The Moby Dick of hedge funds, SAC Capital (run by "I-make-fuck you money" Steve Cohen) owns a ton of this stock. He is buying more but no one knows why. We think we do.
Our not-so-reliable sources tell us that Parlux may be in talks with Avon (AVP). PARL's market cap is $258M. Avon, which has over $1.2B in cash sitting on the books, could snap up Parlux and never break a sweat. Add to this the fact that 63% of PARL's miniscule 7M float is being shorted and you have a stock just asking to double overnight.
Okay, okay. We know what you're saying: PARL's CEO dumped over $11M worth of stock in February. To which we say: Who cares? Stevie makes $11M a day! We'll see you at $45, our 6 month price target for PARL. See, Paris: all those green-and-white hotel trysts paid off after all.
Got news tips or inside information? Don't forget that beginning today, you can AIM your anonymous info to screen name "catablastmedia." Tips, dirt, and smoking gun documents can also be emailed to feedback@catablast.com.
<< Home