I expected to find a lot of fools talking about RACN's stock plunge to around $7.00. I just got in long at $7.00 a share. My primary reason is more than a pure investment. The 'ERTL' Company, Racing Champions recent acquisiton, is the primary supplier for my business. I am an ERTL Distributor. I want to own the stock for many business reasons. Here's a little insider market info:ERTL is a great company and sports the finest line of diecast collectable cars and trucks in the world. If you want to learn more about ERTL go to www.ertltoys.com . Ertl also is the number one manufacturer of plastic model kits in the US under the famous AMT brand. ERTL had sales of $175 million in 1998. Racing Champions is coming off a banner year that was fed largely by the 50th anniversary of NASCAR. In 1999, we do not have all the news and hype we had in 1998 and must settle back into the normal moderately growing Nascar Collectable market. ERTL provides much needed synergy and diversification for RACN. Part of RACN's second quarter loss is due to a 6 million dollar restructuring charge related to ERTL. I cannot resist the stock at $7.00. My perspective is as a customer of ERTL and a close watcher of the Die- cast collectable marketplace. If some of you have insights on things like quality of management at RACN. I'd love to hear it. I have a lot more to say about this marketplace if anyone out there is listening.
I bought in at 6 47/64 (weird number) for different reasons. NASCAR is booming. And its cable contract is apparently about to expire, allowing the major networks to start bidding. I've been told (this is an unsubstantiated rumor) that the networks are hoping to start a weekly race broadcast similar in style to Monday Night Football. Something like the Wednesday Night Race. Sounds like more great exposure to me!All speculation aside, I wanted some exposure to NASCAR-related companies. So I started tracking RACN. I had no idea it was about to fall 60%. But when it did, I jumped. If this sport keeps booming like it does, NASCAR collectibles may end up on a similar footing as hockey or basketball cards/memorabilia.
<<I have a lot more to say about this marketplace if anyone out there is listening.>>Roundup, thanks for the post, and yes I'm interested in your thoughts...
Yes please tell us more.Every body on the Yahoo board is talking sh-t.Don't know what to think.There is talk of sell out, or something.I don't believe it my self, seems like a good time to fill up on a dip, bound to come back to 10+.
Ok Racing Fools, Racing Acquisitions a New York based holding company has offered $10.00 a share for outstanding common stock of Racing Champions. Racing Acquisitions is a New York Holding company formed specifically to acquire RACN. Deal is subject to due diligence by both parties. Trading in RACN was halted today a $7 3/4. Congratulations to those of you who jumped in at $7.Jack
I can't believe my luck! Only the second stock I ever purchased, and it leaps within days. Too bad I only could afford a hundred shares. =)I intended to LTBH this one. But a 50% gain is where I set my sell point. Fool on.C
The board of directors rejected the offer of $10 a share. According to business wire they said offer was "wholly inadequate"
RACN's rejection of the Racing Acquisitions offer of $10 is predictable given the stock was trading in the $18 range in the last couple of weeks. RACN's board now has increased pressure to raise the stock value above the current levels, or conversely a potential suitor will have to raise the stakes. Either scenario looks good for RACN at this juncture IMHO.
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