Porn Should I or shouldnt I

Am i the only one wondering why Adult Shop hasnt climbed since its last announcement? Just a bad market for announcements? Small Cap gone cashflow positive with high growth rate, increasing cash in bank etc?

Looking over the booksover the last two years. The turn around is quite spectacular. They have gone from bleeding money fast, to cashflow positive with a high growth rate. Now cashed up and looking to expand.

What has happened seems simple reading between the lines of Malcom Day. It seems that selling adult products online and through a number of retail outlets is not quite as lucrative as internet porn sites. Although the company has been discrete about the nature of its websites, I would have to assume that the real money isnt coming from search engines. The company, through its subsidery "Today's Success" announces they have aquired more websites of undisclosed nature....the company starts finding a source of much cash.

The ethics are debatable, however after watching I have finally comitted some cash to the first speculative share in 3 years. This one though is cashflow positve and actually undervalued because it is small cap, not over valued. Also been noting small caps outperforming blue chips on US markets for a few months now. as for the ethics, plenty of buyers out there, so doubt my smaller stake will make a huge diff.

excerpt from announcement of 30th april

AdultShop.com Limited today released its cash flow statement for the
third quarter 2001/2002. The Company posted a positive net operating
cash flow of A$5.772 million

ONGOING GROWTH AND STRONG PERFORMANCE

The increase in net operating cash inflow is a result of:

* the successful implementation of various growth opportunities in
the online entertainment business;

* a general improvement in business trading conditions across the
whole AdultShop.com group.

OUTLOOK

The third consecutive quarter of increasing positive operating cash
flows has reinforced the success of the sales initiatives applied in
the online entertainment division. The Directors of AdultShop.com
expect the strong positive cash flows generated by Today's Success to
continue in the coming quarters.

Malcolm Day, Chief Executive Officer of AdultShop.com Limited,
stated: "As planned, the increase in cash reserves will enable the
Company to allocate cash resources to internal growth opportunities,
particularly in the area of online entertainment, and review
potential acquisitions." He added: "The path to financial and
operating success has been clearly set out and management are highly
motivated to fully capitalise on the available opportunities."


For further details or comment, please contact:

Malcolm Day Released by:
CHIEF EXECUTIVE OFFICER Nancy Hackett
AdultShop.com Limited INVESTOR RELATIONS MANAGER
Phone: 61 8 9227 6777 Phone: 61 8 9227 6777
Email: [email protected] Email: [email protected]