There’s a very interesting article today about how strip clubs are over-looked and under-valued. I’m not sure I necessarily agree with that point of view but there are some interesting points to consider.

* They’re recession proof. (along with barber shops and fast food joints)

* They have very low overheads.
The strippers pay for the luxury of working at strip-joints so there are no employee salaries or payroll taxes to worry about. Just rent and electricity!

* The have multiple profit points
First there’s the entrance charge that runs $20 or more. Then comes the food and drinks. Even if they aren’t allowed to provide alcohol, they charge steep fees for providing glasses and ice if the customers bring their own booze. Also they rent out room for private dances. According to the article that can run around $400-$500.

But the one thing that can’t be denied is the terrific performance of 2 stocks mentioned in the
article. Ricks Cabaret Intl Inc (RICK) went from $7 to $11(baring todays market performance) in 6 months and VCG Holding Corp(PTT) went from under $3 to over $12 in the same time!!!!

You can read the whole article at MarketWatch.com.