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Stocks R / Racing Champions Corp.
|Subject: 60% drop? Where is everyone?||Date: 6/25/1999 2:29 AM|
|Author: Roundup||Number: 16 of 35|
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.
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