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IFL 5-day stock plunge
By Zach Arnold | April 6, 2007
The picture from Yahoo Finance says it all. Let’s hope they have better karma for their event tomorrow in Moline, Illinois at Mark of the Quad Cities.
For those of you curious, my article on what the IFL needs to do to change their business strategy around to start building momentum is available at MMA Madness. The core of writers being built up at MMA Madness is pretty good in my estimation.
Topics: All Topics, IFL, Media, MMA, Zach Arnold | 14 Comments » | Permalink | Trackback |
That graph makes me lol.
I profited $40 on the stock around 12 bucks… It went up to 16 and I knew there was no way I was ever going back in 🙂
I got out and if it goes below $4 then I will put some side money in but otherwise I will stick with other stocks, anybody wanna talk stocks email me [email protected]
Looking at the last few months:
Their stock did really well for 3-4 months.
Their IPO was 19.4 million shares at 1.25/share in early December ’06. They hit a high of 17.00/share sometime in January ’07, which is a pretty amazing climb.
Maybe the stock was overvalued, maybe their business model sucked, maybe Wall Street thinks the Zuffa juggernaut is just too much for the IFL to contend with.
[…] IFL 5 Day Stock Plunge […]
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.
Might be mr. I…
More likely it was the report they released a few days ago which showed them losing a fuckload of money.
What he said ^
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.
Nice Screen Name.
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.
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 understand your argument, and it is more then likely completely valid. But what I was contending for is the fact that if the IFL were to make one HUGE announcement tomorrow or someday soon…say Fedor vs Cro Cop or Frank Shamrock vs Sakuraba…some huge announcement…their stock price could go up in value significantly. Stuff can change very quickly.
They were valued at 15.2/share, with 19.2M shares outstanding, thats over $290 Million in market capitalization. I read they at that price they were valued higher than both the Dallas Cowboys and Yankees. This is all pretty ridiculous given that their previous income statements show no revenue in any previous quarters (yes, I said revenue not income!) Plus, its not even like they have good events. With terrible statements and such a high price we should kicking ourselves for not shorting the stock…
Jonathan, i disagree. What’s happening on the front end matters very little to stock traders who are paying attention to the bottom line. The IFL’s stock is a result of traders thinking MMA is the next big thing. What they’re realizing now is it’s not MMA, but UFC.
[…] We remarked on Friday about the recent 5-day IFL stock plunge. This morning, the stock has dropped $1 down (down 16%) to $5/share and is trending downwards. […]