
CHICAGO, IL (NAMC) - The adult nightclub/entertainment business is often associated with the seedy side of business, but in reality it can be a profitable venture if you check your moral standings at the door. The adult nightclub business has gone from the private sector to the public side and the average joe can actually buy a piece of the pie in the open market.
Playboy Enterprises (NYSE: PLA) is by far the most respected and well known adult entertainment empire, from television to magazines/product lines, Hugh Hefner has left no stone unturned. Now this has laid the groundwork for the likes of companies such as Rick's Cabaret International (NASDAQ: RICK) and VCG Holding Corp. (AMEX: PTT) to grab market share more rapidly by being publicly traded entities.
VCG itself just received a notice from the American Stock Exchange stating that the Company is now in compliance with the AMEX listing requirements.
Both VCG and Rick's are trading in the same range, between $6 and $10, and neither has been above $15 in the past 52 weeks or so. With the rollercoaster ride that the global markets have been going through as of late and the dim view of investors for the immediate future of the market, believe it or not these two adult nightclub companies may begin to pick up the pace in the profit column.
In times of unsteadiness people look for an escape from reality if only for a few hours, granted a good movie or a night out may do the trick, but for countless others a few hours in an adult nightclub may do the trick for them.
So in short, VCG Holding and Rick's Cabaret may be two stocks to watch as we head into the final stretch for 2007. Also keeping a close eye on Playboy may be the the cherry on the publicly traded adult entertainment pie.
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