Shares of Parlux (NASDAQ: PARL) are up around 16% today on just one bit of news. No, the company didn't report a great quarter, and no private equity firm has made a bid. Instead, the manufacturer and market of perfume lines including Maria Sharapova, Paris Hilton, and Royal Copenhagen has signed a deal with Jessica Simpson to launch a fragrance bearing the former Newlyweds star's name. Financial terms have not been disclosed, and that's a key point for investors to remember.

In licensing deals, most of the benefit of the name aggregates to the owner of the name. Ms. Simpson will likely receive a hefty chunk of the profits from the product's sales, leaving Parlux in a manufacturing, marketing, and logistics role. As exciting as all the company's lines are, Parlux has lost money over the last 12 months, and its stock has plunged from an all-time high of over $16 to its current price of around $5.20. Interestingly, the stock hit a 3-year low yesterday.

I'm surprised at how positively the market is reacting to this bit of news. In the wake of her high-profile split with Nick Lachey, the flop of Dukes of Hazzard, and her last album A Public Affair, most of the headlines she's generated lately have been about her relationship with John Mayer.

As one Amazon.com reviewer put it, "Her 15 minutes are ticking." For now, the Jessica Simpson deal is helping sell Parlux stock. But will she be able to sell Parlux perfume?

Parlux soars on deal with Jessica Simpson -- Will anyone buy? originally appeared on BloggingStocks on Wed, 27 Jun 2007 13:50:00 EST. Please see our terms for use of feeds.