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Interesting Financial view of NASCAR

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  • Interesting Financial view of NASCAR

    http://seekingalpha.com/article/2275...p?source=yahoo

    It's a very interesting article that doesn't get caught up in what makes NASCAR popular or why it's in decline nor is it punctuated with personal attacks. Like most things really are, it's about the money.

    Two things for any Indycar fan, and maybe Randy Bernard to see, is:

    It costs about the same to run a racetrack and a race day event no matter how many people show up.
    Looking at how ISC does next year after the loss of all IndyCar events could open some eyes about the circumstances that would have to occur for a return to any of them. If they do much better without the series would have to greatly improve for ISC to want it to return.

    In my opinion, ISCA offers the best investment option. I do not like Speedway Motorsports (SMI) because of its higher debt levels and more aggressive partially debt-fueled expansion in the face of declining NASCAR popularity.
    That's the wagon you've tied your horse to, we'll see how it goes.

    Maybe most telling no mention in all that analysis of ISC's fortunes on what having races other than NASCAR meant to that company in the past or the loss of will mean in the future. Absolutely no mention of IndyCar at all. Makes you wonder if it had any financial impact on ISC at all. And does it have any impact on SMI?
    "You can't arrest those guys, they're folk heroes"
    "They're criminals"
    "Well most folk heroes started out as criminals"

  • #2
    I believe the money matters. It's not like you can pay'em in cash so that they could "hide" the service like a boot-leg contractor.

    Example soft numbers. A million or 2 may not matter much to the books when you add it to 20 million, but the lack of 1 or 2 million matters when you are looking at say, 15 million.

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    • #3
      Let me put it this way. The guy might know something or then again he might be full of b.s. He has no real track record in investments. He's a recent grad. from Drexel and his SIM, LLC is about to turn 1 year old. In my book it doesn't qualify him as much of an investment specialist.


      Ben Strubel is a 2009 Graduate of Drexel University with a Master of Business Administration in Investment Management. Ben founded Strubel Investment Management, LLC ("SIM") in October of 2009. Prior to founding SIM Ben worked for several years in the Information technology field at a Fortune 1000 company.

      Trading frequency: Infrequent
      Tara was the name of our cat.

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      • #4
        Absolutely no mention of IndyCar at all. Makes you wonder if it had any financial impact on ISC at all. And does it have any impact on SMI?
        The big OW hit on ISC was about ten years ago. The drop from 1999 peaks for ISC's value mirrors the death of its major league OW events at the former Penske Motorsports tracks.
        Racing ain't much, but workin's nothing. Richard Tharp

        Lying was a no-brainer for me. Robin Miller

        "I thought they booed [Danica] because she was being a complete jerk, but then they applauded for A.J. Foyt. Now I'm just confused."

        The real world sucks. Ed McCullough

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        • #5
          Very interesting insights.
          Thanks Z28
          Quando Omni Flunkus Moritati

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          • #6
            It costs about the same to run a racetrack and a race day event no matter how many people show up.
            Well, DUH! Obviously your costs are the same... but how well do you offset the costs and make a profit?
            "It is a besetting vice of democracies to substitute public opinion for law. This is the usual form in which masses of men exhibit their tyranny." - James Fenimore Cooper

            "One man with courage is a majority." - Thomas Jefferson

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