Take it Private! is a new series looking at one company each week that, in my opinion, has no reason for being public. To find these companies, I screen for the following:

• High insider ownership
• A history of solid profitability
• A paltry Price/Earnings and/or Price/Cash Flow multiple, and a reasonable Price/Book ratio.
• A stagnant stock price accompanied by low volume indicating a lack of interest in the stock

My purpose in highlighting these companies? This screen can be a good way to find deep value stocks, especially companies that may be attractive to a strategic buyer, private equity firm or management-led buyout at a premium to the current share price. However, this profile should not be interpreted as a recommendation to buy shares in Playboy Enterprises (NYSE: PLA).

Steven Mallas recently asked What happened to Playboy stock?, and referring to the company's tanking stock price and operational problems wrote that he'd "love to be invited for an extended stay at the Playboy mansion so that I could help solve the company's problems "
As a warning, this stock does not meet many of Take it Private! standards. The company has struggled with profitability and has a substantial debt load. Insiders own 35% of the company's Class B shares, with Hugh himself accounting for just under 28% of that amount. The company's corporate governance is complicated -- and undermined -- by the company's dual-class voting structure with Mr. Hefner controlling about 70% of the Class A stock. So nothing can be done about the company's poor performance without Mr. Hefner's consent. And he seems like too nice of a guy to fire his daughter CEO Christie Hefner.

This brings me to my conclusion: if Hugh wants to run Playboy with his so-far ineffective daughter at the helm without regard for the interests of the company's outside shareholders, he should take it private. That would give him ownership of the Playboy Mansion, which he currently leases from the company. The company's beaten down share price makes the stock an attractive takeover candidate if a turnaround can be executed and, given the strength of the brand, it certainly seems possible.

Playboy's board of directors should do the right thing: either make an offer to take it private or solicit offers from competitors. The pursuit of value creation as a stand-alone public company has been a resounding failure for more than 15 years.