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Adult Entertainment: Gaming The Sweet Spot

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If adult entertainment makes you think of back rooms and seedy stores think again! The porn business is nearly as mainstream as must see TV.

And with close to $15 billion on the line you can’t blame Corporate America for looking for a piece of the action.

In fact, cable and satellite TV operators seem eager to profit from porn’s popularity. From on-demand offerings to new HD channel selections big media is making money off the after hours action.

You might say, with erotic hits accessible at the touch of a button, cable and satellite operators are hitting the sweet spot.

But all good things come to an end.

And with a bountiful selection of free content on the Internet some pundits worry that pay-for-porn providers may see a letdown where it counts – on the bottom line

Considering size matters -- the size of your profits—all week the Fast Money gang will game the companies who make big bucks by peddling pleasure!

First stop - the cable companies.

I think Cablevision is probably the best cable operator out there, says Guy Adami. Considering they offer a Triple Play package they conceivably profit from people watching soft porn on cable, downloading adult content on the Internet and/or calling those sexy chat lines.

Looking at the stock, I like it above $19; otherwise it's a buy at $16.50, says Adami. I really think this stock could pop, especially if they spin-off MSG.

Want more adult fun? Then don’t miss the CNBC’s original "Porn: Business Of Pleasure" premiering on Wednesday, July 15th at 9p and hosted by Melissa Lee.


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Trader disclosure: On July 7th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (BAC) Preferred; Finerman Owns (BAC) Preferred; Finerman's Firm Is Short (BAC); Finerman Owns (RIG), (TBT); Finerman's Firm Owns (FCN), (MSFT), (NOK), (PBR), (RIG), (TBT), (WMT), (PLCE); Seymour Owns (AA), (AAPL), (BAC), (BX), (EEM), (FXI), (F), (NUE); Seymour's Firm Owns (MBT); Seymour's Firm Is Short (PBR), (PTR); Najarian Owns (COST), (DNDN), (GS), (MS), (V), (WFC), (HK); Najarian Is Short (NVDIA); Najarian Owns (AAPL) Calls

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