Stocks are finicky…they could be up huge tomorrow if the right windfall happens. I am not sure how much you can gauge the MMA scene bu what happens to the IFL stock.

Well, a company’s stock generally goes down if the market as a whole expects that their future profitability is non-existant or that they are going to (continue) lose money for the future. Considering that even their valuation allowance is listed as 100% (which means in tax terms that they don’t expect to gain a profit in a near future to deduct their net losses already accrued from the taxable income – IE: they don’t expect to make a profit anytime soon), I don’t think the market is so confident about keeping the company’s stock given the blatant negative signals found in the Annual Report.

I actually think the 1st quarter ‘07 numbers are going to be worse. Paid attendance and gates for those shows were poor. They increased spending for advertising these events. And they had a bunch of events in this quarter. The 4th Quarter of ‘06 had them losing a little over $4 Million. I wouldn’t be shocked if they lost over $5 Million in 3 months of 2007.

That is exactly what happened. ALL publically exchanged companies must release information and the IFL finally hit their first ‘bump’ in the road where they had to file a report. What was released last week was their annual 10K report. If you read the details behind it, it’s very bad news.