Second, never catch a falling knife. Just look at the chart, is it falling? Don’t buy. Wait until it stops falling, then buy. Don’t catch falling knives, let them hit the ground, then bounce, then settle – then buy.

Third, you are probably leaving the stock at the absolute worst time. NOW is the time to buy, not then. That is, if you think it’s a good value …

There are so many things that smell in this package that the U.S. Attorney would have a field day if he wasn’t proccupied with politics. The problem isn’t terrorism; it’s government! If you are a shareholder and believe that you have been defrauded, sue! Not just the company, but the regulators and the U.S. Attorney and demand that they do their duty as regulators and law enforcement officers.

The government claims that it has the right and obligation to protect investors — compel them to do so by getting a lawyer conversant with our security laws and our constitution to compel them! Oh, and expect to spend money before winning, which you will if you stay the course.

Where is the agreement to sell the Perry Ellis rights? Where are the personal financial statements of the clowns that are managing Parlux? What compensation do they derive from all their related companies? Where are the auditors? Their silence is deafening.

I am NOT altogether negative on Parlux. Excuse the typo. Thanks

Like you men, I would like to see a little more conservatism on the management team, lets get this accounting together and move forward. I am altogether negative on this company’s prospects. With or without these related companies, Parlux seems to have a nice composition of proven brand names and new and exciting emerging brands. One must really consider the work and effort involved in getting a Hilton contract like that, she could use anyone but Parlux arranged that deal. Perry Ellis, Guess, XOXO and others are serious brands. They will sell well for XMAS and Valentines day, so friends, I am not sure who would short now or not cover at this point, but I will end with this GREED has gotten the best of some smart investors and they went a little to heavy on their enthusiasm for this good story. The institutions are going to settle this, not the court of public opinion.

While I hope I will make some money on this, it is a risky play which could pay off or put me in the house of pain with the rest of the herd. To be continued….

Speaking of scams. The recent trading in BB stock ACTC is a perfect case of the insiders/market makers bagging the public big time.

They knew full well on the day they ran this to 1.90 , then 2.40 on the open the next day, that there would be huge diluition and a repricing of options. The repricing of options, a dubious practice at best, was certainly leaked to the market makers.

They were very happy to short stock into this , knowing they would be able to cover any shares. Stock is now down 50% + from the highs, in just two days.

I read the articles about the whole mess before I bought any shares. I also watched the shares go from 16 bucks to over 36 bucks and then come back down to 25 bucks before I ever made a buy. I also noted that the company bought back shares with excess profit and was alittle concerned about the warrants but since the insiders were not selling shares I bought anyway.

Once I bought shares I watched as the short interest increased and the price kept going down. I was going to take losses myself but the CEO came in and stated he was going to take the company private at 29 bucks a share. Call it greed or call it confidence based on knowledge that the fundamentals were still in place. The media coverage intensified and alot of negative information came out. The share price tanked but I was looking for a little pop to exit the trade. The CEO withdrew because of another offer that the company confirmed. This prompted me to hold the shares and wait to see about the other offers. There was not way to find out information about the offer and the company was not telling the investors anything. The accounting issues could be understood as Sarbanes Oxley has reaked havoc on lots of growing companies period. I understood the cost associated with it so I was optimistic since Deloitte and Touche was doing the accounting. They signed off on the 10K. They are also working on the current 10Q. It must be more difficult then any of us can understand or there truly is a problem with the company that happened in the past 3 months? The company finally tell us they have received an offer for the PERRY ELLIS brand and we then find out the numbers were going to alot less then projected because of known expenses that were buried in the 100 plus page 10K. This is wrong for the company to bury information after they have already sold shares in the markets during the same time frame. That is why the share price is down and has not recovered. The guys running the company knew they were going to have some big expenses to launch the new line of handbads and cosmetics. I believe if they would have told the investors how much money they needed to spend and projected the costs to the EPS the whole matter would have not resulted in share price decline. It was the management of the company trying to hide some known expenses from the shareholders or short sellers that resulted in the share price destruction. I am way down on alot of shares as I avg into the losses and then doubled down on the shares when the accouting was signed off on. I had to sell some shares for big losses just to keep afloat. I still have shares as I belive they will recover but I cannot see the company every fully regaining trust in the market place in the future if they feel the need to hide or bury expenses so the average investors cannot figure it out.

I guess I am guilty too of being a little greedy based on known information. It is the unknowns that got me. It is hard to always assume that high short interest in a company is always a sign that stocks are going to go down. There were no options on the stock and it very well could be that big holders are boxing there position by taking a long and short position.

Good luck with your shares we are in the same boat.

There’s been a lot of crazy things going on at Parlux Fragrances. Join me on my wild ride with this stock and learn from my experience….

I don’t know enough to rule out fraud, but it feels more like incompetence than fraud. So I’m holding on until at least the Q is filed…