Five Dumbest Things on Wall Street: Dec. 19

PacSun's Pinhead Pen Pal

The CEO of athletic apparel retailer Adrenalina(AENA.OB Quote) needs to put down his pen and pick up a brain.

The moronic letters from Adrenalina CEO Ilia Lekach to Pacific Sunwear(PSUN Quote) CEO Sally Kasaks offering to buy PacSun have wasted everyone's time.

In the most recent letter, written in late November but released this Monday, Lekach withdrew his offer to purchase the teen retailer for $5 a share, or what was a 72% premium at the time. Lekach cited PacSun's "precipitous stock decline", as well as "the Board's refusal to meet with us," for pulling his pricey bid. Does he think anyone cares?

Lekach originally proposed the $296 million merger in an October missive to Kasaks, but was immediately rejected by PacSun's board on the grounds that it was not in the best interest of shareholders. He then raised the bid, but PacSun still said no.

At this point, you may be wondering if Kasaks and the PacSun board may have soaked up too much of that strong California sun in rejecting a seemingly juicy offer while their own shares languish under $2 and same store sales plummet.

But dig a little bit deeper and it's clear that Kasaks and Co. are quite right to ignore the delusional Lekach.

PacSun has 813 stores and 124 outlets. Adrenalina has just three. PacSun had sales of $324 million in the third quarter alone, while Adrenalina only managed to bring in $4.5 million over the last 12 months. PacSun has a market cap of $113 million and Adrenalina is worth $14 million. So there is no way Lekach's guppy can swallow such a big fish.

Kasaks finally responded to Lekach on Monday, by letter of course, telling him that his antics only serve to "distract" PacSun's employees. He should have saved on the stamp and sent Lekach a three word e-mail: Stop Being Stupid.

Dumb-o-meter score: 75 -- Adrenalina's next product should be a sporty dunce cap for its CEO.