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IFL stock goes south fast
By Zach Arnold | April 9, 2007
We remarked on Friday about the recent 5-day IFL stock plunge. This morning, the stock has dropped $1.20 (down 20%) to $4.80/share. It is bouncing back and forth between $4.80 and $5.00/share.
Also, the SSPE (Sun Sports & Entertainment Inc.) stock is heading downwards to $0.13/share. They are the backers of the Texas Art of War MMA show series.
Topics: IFL, Media, MMA, Zach Arnold | 5 Comments » | Permalink | Trackback |
In the rare event that the IFL stock goes below 4 dollars I may buy it…
Even if it goes below $4, the company could be out of business by the end of the year. So any gains you hope to make should be short lived.
I’m sure they knew they were going to lose tons in the first few years. The bigger issue is if MyNetworkTV gets cancelled as a network.
Zach,
Have you looked at the financial statement? They lost over $4 Million in the last quarter of 2006. They have about $16 Million worth of cash (less if you consider the payables they have) and they expect to lose $14 Million in 2007. Unless they sell more stock, they are on pace to be out of business by the end of the year. That is the financial reality of their business.
Yes, they probably expected to lose money, but not half as much as they are. They are taking almost no money in from the TV deal. And every event they put on is losing them lots of money. A company who spends money with no good income is going to fail.
And their TV show tonight was pretty damn good. Two Lindland fights and a few other good ones.