I have to admit, I completely missed this move. I usually keep tabs on Playboy (NYSE: PLA)'s stock action. Not very close tabs, truthfully, but I do check in somewhat regularly. I was shocked when I saw how low the stock had recently dropped. Back in the first week of May, when I reported on the adult-entertainment entity's earnings, the stock was trading around $7.25. As of Thursday's close, the stock was priced at $5.85 per share. The 52-week low now stands at $5.52. TheStreet.com recently cursed the stock to sell status.

That's a steep move in such a short period of time, and now I have to ask myself: Is the stock a trade? I mean, a thought that immediately came to my mind upon seeing the current share price was that the Wall Street movers and shakers may have overshot on the selling here.

But then, other thoughts came to mind such as how badly the company has been doing. Also, as Zac Bissonnette recently pointed out, pornography isn't really recession-proof at all in this age of the Internet. Seekers of adult entertainment have seen their wallets benefit from the proliferation of the clip culture as expressed by sites like YouTube and its more porn-friendly counterparts.

Playboy not only needs to get its publishing house in order, it needs to figure out new business lines to propel growth. I've suggested before that the production of mainstream movies might be in order, similar to what World Wrestling Entertainment (NYSE: WWE) is doing with its WWE Films unit. Perhaps it should work on more mainstream reality shows, going beyond material like Girls Next Door by producing programs not related to the Playboy brand. Maybe a toned-down version of the magazine a la Maxim and Stuff should be attempted. Remember, some of Playboy's thunder has been stolen by the "lad mags."

I'd love to be invited for an extended stay at the Playboy mansion so that I could help solve the company's problems (as one might guess, this isn't the first time I've made that particular offer), but whether that happens or not, I think I'm going to pass on picking up shares of Playboy at these levels. My gut is telling me the price could go lower. I'm not against speculative value buying all the time, but with Playboy, I'll have to go with my colleague Timothy Sykes' technical philosophy in regard to stock trading. Sometimes, the chart is all you need to see.

Playboy's stock will get sexy again at some point, I'm sure. Question is... when?

Disclosure: I don't own any company mentioned here, but positions can change at any time.