Forbes.com

Markets Stock Focus: Adult Entertainment Companies


"The adult entertainment industry usually is not badly affected by a wider slowdown," says David Brenner, equity analyst at Ladenburg Thalmann. "The business is recession-resistant....."

That's because adult entertainment products are relatively inexpensive and largely purchased on impulse, according to Brenner's colleague, Robert Routh...

Adult entertainment businesses can expect to see their market capitalizations at least triple over the next five to seven years, according to Routh. One reason is that the industry is becoming more socially accepted, he says, citing AT&T's distribution of the Hot Network to digital cable customers as an example....