Knobias ClipReport (6-28-2007)

Submitted from Knobias ClipReport

Summer trading has begun as has the summer media menu. With elections still some time away and no one missing or on trial at the moment, the slow season has taken hold of both arenas. Trading has become extremely thin with traders piling into the latest low float, hot name. News headlines have begun to scratch and grasp at anything that could possibly grab national attention.

The latest headlines, whether you like it or not, has been the Paris Hilton saga which will undoubtedly come to a head with a Larry King live interview Wednesday night. With the first interview since being released from jail, though being completely absurd, will make national headlines and be the talk of many in media during Thursday.

This aspect gives way to the latest theory of celebrity trading. Hilton has been firmly entrenched as spokesman and marketer of Parlux Fragrances Inc. (PARL). The Company is engaged in the creation, design, manufacture, distribution and sale of prestige fragrances and beauty related products marketed primarily through specialty stores, national department stores and perfumeries on a worldwide basis.

Hilton, who has a signature line of fragrances, lotions, and watches marketed by the Company, could cause a movement in the stock if there is mention of the Company’s products.

Parlux shares on Wednesday saw an increase in interest on news that the Company had signed a global licensing agreement with Jessica Simpson to launch her signature fragrance which will debut in July 2008. Shares were up 7.5% on the news and were possibly helped by early entrants hoping for price spikes due to the Hilton interview.

Another public company was also in the news which could have an effect on its share value. World Wrestling Entertainment (WWE) which last week staged the death of founder/chairman, Vince McMahon, was struck by tragedy when former wrestling champion, Chris Benoit, was involved in the murder and subsequent suicide of his family.

The Company, which came under fire from the staged death of Vince, was now under even more scrutiny following the latest wrestler’s death. The athletes involved in the sport have long been suspected of illegal steroid use and painkillers to help them look and perform their best on one of the most grueling schedules in all of sports and entertainment.

More scrutiny could come about if the toxicology reports on Benoit show steroids were in his system at the time of the tragedy. Ratings could suffer while advertisers move their business from WWE to other time slots or television stations all together. Congressional hearings could also come about, which in itself is incredible they haven’t happened already with the number of wrestler deaths related to the performance enhancer especially considering Major League Baseball’s recent cleanup.

Donald Trump’s name has also been in the limelight. The reality television star and real estate mogul’s company Trump Entertainment Resorts (TRMP) has been reportedly put up for sale. Dennis Gomes and Morris Bailey are bidding on the Company and have noted that the talks are progressing.

Trump has been noted as saying that he will not accept anything lower than the low $20’s for the Company which owns and operates three casino hotel properties in Atlantic City, New Jersey: Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino. Morgan Stanley, the largest shareholder, noted that it would not consider anything below $17 a share.

Gomes and Bailey along with Bear Stearns have noted that $11 a share was a reasonable offer considering the circumstances hampering the casino’s profitability. The valuation could impede the sale which is already seen as a having a remote chance by many investors.

In any event, the latest media headlines have given traders opportunities to capitalize. With Hilton’s interview, shares of Parlux have a considerable chance to build on Wednesday’s move. WWE shares could continue to come under pressure with further information regarding the recent tragedy and possible reform, while Trump’s latest casino sale might cause someone to get fired. These headlines are certainly some that investors would be wise to watch.