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from www.smallcapnetwork.com – It is difficult to perceive how FriendFinder Network is a buy for the future. It has fallen by almost half since its initial public offering.

FriendFinder Network went public on Wednesday, May 11, 2011 at $10 a share. It closed Tuesday May 17, 2011 at under six dollars a share. It was up in after hours trading slightly. Any upward bounces like that should be utilized as the opportunity to establish a position to profit when it declines again. The numbers explain why and the story behind them is not pretty.

FriendFinder Network is the publisher of Penthouse Magazine. It also operates numerous websites. It has been trying to go public for three years.

At first, the goal was to raise over $400 million. There were not enough friends to be found to support that. Then last year, it attempted to IPO for $240 million. Same story: not enough friends to find. Finally, FriendFinder Networks was able to raise $50 million.

The biggest asset of the company is goodwill. Annual sales for the last three years have been around $350 million. It has half a billion dollars in debt on the books. Losses each year average about $40 million. A negative article about the stock in The New York Times last Friday has not helped.