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Stocks A / Action Performance Companies
|Subject: Re: Followers rise...||Date: 3/26/2002 5:15 PM|
|Author: foolarado||Number: 19 of 25|
I was curious about that dip in profits and stock price also. I read all of the SEC filings and listened to the conference calls to figure it out.
As best as I can make out ATN attempted to market their products through a website which they developed. This was timed co-incidently with the beginning of the .com bust. Their website and the investment tanked causing a huge write off ( I seem to remember $3.5 million, but look for the numbers in the fy2000 report). This made most of the difference between profit and loss. ATN then did a management housecleaning and dumped it's web enterprise.
Now ATN has a web presence, goracing.com, which is managed by QVC which is turning into a profitable arrangement for both.
Companies make mistakes all the time, sometimes very expensive ones. Good companies/management recover, learn and move on. It appears this is what ATN has done.
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