Toronto Escorts

Owner of adultery website pushes for IPO

oil&gas

Well-known member
Apr 16, 2002
12,224
1,621
113
Ghawar
http://globeinvestor.com/servlet/story/GI.20100124.escenic_1442473/GIStory/

Andrew Willis and Boyd Erman Sunday, January 24, 2010

Adultery enabler Ashley Madison may be too hot for the streetcar, but
not for the stock market.

Avid Life Media Inc., the parent company of dating websites such as
CougarLife.com , EstablishedMen.com and the notorious AshleyMadison.com
, a site for people seeking extramarital relationships, is raising
$60-million and is pushing for a listing on the Toronto Stock Exchange,
sources say. It's one of at least seven Canadian technology companies
that could make its debut on public markets in coming months as investors
rekindle a long-dormant interest in growth stocks.

Avid Life is in the final stages of a process that would see it begin
trading on a Canadian stock exchange in a matter of weeks. The move comes
just a month after the Toronto Transit Commission spurned a $200,000 ad
campaign from the company that would have seen a number of its streetcars
sporting the slogan, “Life is short. Have an affair” and the Ashley
Madison website address.

Even Bay Street, with its well-documented zeal for any money-making idea,
is struggling with the idea of backing a company premised on breaking
one of the Ten Commandments. A number of investment dealers declined
to join what is being described as an “entertaining” sales campaign
run by Avid Life's bankers at GMP Capital Inc.

One financier who passed on the deal said that, while the company is
sound, after talking to institutional investors his firm decided: “A
lot of customers won't want to buy it.”

GMP's pitch to investors seeks to play down the Ashley Madison connection
by noting that the site accounts for just 15 per cent of Avid Media's
sales.

Those who can get past the idea of infidelity will find a profitable
digital media business.

Avid Life posted $30-million of sales and $8-million of earnings before
interest, taxes, depreciation and amortization (or EBITDA) in 2009. The
latter number was a four-fold increase from 2008, according to documents
used to market the deal.

Avid Life will use part of the money it raises in a private placement to
acquire privately held Moxy Media, an online advertising sales company
based in Guelph, Ont., that runs more than 300 websites.

The merger would create a far larger, and more diverse, media company.

Moxy reported sales of $192-million and $27-million of EBITDA in 2009,
according to documents used to market the deal. After the takeover, Avid
Life will list on the TSX Venture Exchange or Toronto Stock Exchange by
staging a reverse takeover of a shell company.

Avid Life is trying to win over investors who are showing new-found
interest in small-to-medium-sized technology stocks after a two-year
dry spell for initial public offerings.

The recent burst of IPO activity reflects institutional and individual
investors shifting their portfolios from defensive holdings such as
bonds and into companies that promise strong growth.

Three mid-sized Canadian tech companies are targeting IPOs that include
listings on U.S. stock exchanges.

Ottawa's Mitel Networks is close to completing a $230-million
(U.S.) offering.

Next up are Smart Technologies ULC, a Calgary-based maker of digital
whiteboards, and Toronto-based ViXS Systems Inc., which builds networking
equipment for multimedia.
 

21pro

Crotch Sniffer
Oct 22, 2003
7,830
1
0
Caledon East
prime candidate for private undisclosed investment from big companies. kinda like the porn industry in the late 90s to 2005ish when GE, GM, WM and MS all privately owned each of Vivid, Wicked, New Sensations and Digital Playground. but, that is not what the company organizers want...

It will be Moxy Media that gets the IPO listing...

Moxy Media is a company that hires the best of York University's leading Creative Advertising program each year.
 

hinz

New member
Nov 27, 2006
5,672
1
0
Given the piracy of free porn, amateur and pro on the net, the pricing power is "capped" for the Vivid of the world and I believe CNBC has already mentioned porn industry is not recession-proof in this Great Recession.

I would be very hesitant to speculate on any "porn/adult/sin" related IPOs or stocks, the majority of which are small cap and not very liquid. Owning gambling stocks give you more bang for a buck.

Having said that, you could try the following quasi-porn stocks if you are so inclined to,

JNJ-King of KY Jelly
PFE-Viagra
LLY-Cialis
LTD:Remember Victoria's Secret and La Senza?
CHD-Remember Trojan?
RICK-a small cap, consumer discretionary stock masquerade as "strip clubs". The company has "lower" overhead since the majority of the "talents" are "self-employed/not under company's payroll" and hence not much expense on funding DC plan and health care. The only weakness one could think of would be "clients" may not have that much discretion money/assess to credit to spend on both "talents" and expensive priced food and wine at the locations.

And don't forget the execution risk to acquire/buyout and integrate "mom and pop" strip clubs.

The stock could be a bargain when it's under USD$ 8 per share and who knows this concept could be transformed as franchaise like Timmy's or McDonalds in the future, even closet Real Estate play? :rolleyes:

Disclousure: Not a shareholder of JNJ, CHD, LLY, LTD and RICK
 
Last edited:
Ashley Madison
Toronto Escorts