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URL:  http://boards.fool.com/it-looks-good-to-me-but-what-do-you-like-about-atn-16939277.aspx

Subject:  Re: Followers rise... Date:  3/22/2002  1:04 PM
Author:  zarin100 Number:  16 of 25

It looks good to me but what do you like about ATN and it's future?

Hi there!
Yes, not only it looks good, it's been performing even better. What I like about it? It's been the number one merchandiser and licensor in NASCAR. High margins that indicate little-to-no competition, dominant market share, apparently competent management. Though,at this point I can't state that I know the business inside out. The balance sheet is strong, they've got quality earnings as well. It's a cash cow.
During recent recovery they seem to have cut costs, implemented strong controls,eliminated slow-moving inventory and refocused on our core strengths (they also rewarded managemant team accordingly, f.Wagenhals's,CEO bonus for 2001 was $1million. But that I guess, is a part of SG&A costs).

TRhe future outlook is quite optimistic consider increasing popularity of NASCAR. Brand name (or names) is in place, who hasn't heard of D.Earnhardt and son? Although, as Ben Graham stated "Obvious prospects for physical growth in a business do not translate into obvious profits for investors.."

And, do you know what all the legal fuss is about in some of the earlier posts (i.e. Are you conerned about it?)

No, I'm not concerned about it. In fact on Feb28,02 ATN released an article claiming: "As a result of the new agreement, Speedway and Action have agreed that all prior issues have been fully resolved and that the pending lawsuit filed earlier by Speedway's racetracks will be dismissed.

Bill Brooks, VP of Speedway Motorsports, said, "We are pleased to put this matter behind us and to be able to continue our mutually beneficial business relationshipwith Action"."

I still think it's not cheap right now. PE might be a little lower that its estimated growth rate, but I'll hold off and expect better levels to buy in on this. It's a tune in later one. Love the performance though. Might qualify as a turnaround.

Also if you're a fan of Foolish8 criteria, really like DYII, it should qualify....

Foolishly,
MP

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