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Give This Vroom
Some Room: American Racing Capital, Inc. (OTCBB:AMRA)
By Glenn Wilkins -
AllPennyStocks.com News Reporter
January 17, 2008 (AllPennyStocks.com
Media, Inc.) – It’s fast, loud, and for an increasing section
of the population, exhilarating. The roar of engines powering
cars around a track or over a circuit has caught the public’s
fancy to the point where investors can no longer ignore it.
The sport of motor racing has progressed well past the stage
where a bunch of neighbors working in a man’s garage could
furnish a car able to drive home a champion.
Motor sports now make up the most popular spectator sport in
America, the fastest-growing sport in the world. In the weeks
leading up to the Daytona 500, NASCAR’s first and biggest
event, here are some things to consider: more than 20 million
Americans attend motor sports annually, tens of millions more
follow it on TV, in print and Internet publication. Simply
put, motor racing is big business!
American Racing Capital, Inc.
(OTCBB:AMRA), out of San Diego, hopes to turn this
fiery passion of more and more Americans into a robust balance
sheet for itself, its customers and its investors. The holding
company specializing in motor sports and whose stock trades on
the Over-the-Counter market under the symbol AMRA, acts
through its subsidiaries to acquire financial interests in
auto racing facilities and develop and manage the racetracks
it already owns.
The company’s business also includes motor sports sponsorship
services which are highly specialized and promotional services
in the industry. The programs entail introducing companies to
multiple levels of race team and racetrack sponsorship
activities.
AMRA’s mission, according to its website, is to “help
companies develop and build brand reputation using motor
sports as a revenue-generating opportunity.”
One of the more prominent acquisitions involved an AMRA
subsidiary picking up a 51-per-cent interest in
Tennessee-based LJ&J Enterprises, which owns the Music City
Motorplex in Nashville, the track that has sent dozens of
drivers to NASCAR, more than any other track in the country,
with names like Lee Petty, Donnie and Bobby Allison, Darrell
Waltrip and Sterling Marlin. The new owners also plan to make
the Motorplex as a concert venue during 2008 (after all, this
IS Nashville) with half a dozen events throughout the year.
Lest anyone forget what a lucrative business track ownership
could possibly be, 2007 saw Bruton Smith of Speedway
Motorsports take over New Hampshire Speedway for $340 million.
Certainly, American Racing Capital has not forgotten; indeed,
the company shifted its drive to acquire into overdrive,
exercising its option to purchase Magnolia Motor Speedway in
Columbus, Mississippi. The announcement was made in November,
and amounts to a multi-million-dollar deal for AMRA.
Also on the drawing board is the design and build-out of a
Monte Carlo-style Formula One track in Mexico. A deal closed
during 2006 for AMRA to acquire Driving Concepts
International, an agreement calculated to expand the company’s
core competencies by adding a high-performance driver-training
component.
The men in the driver’s seat at AMRA know whereof they speak.
President Bob Koveleski boasts more than 30 years’ experience
in the marketing and advertising end of the specialty auto
market. His experience also includes a stint at the head of a
racing school at Pocono International Raceway, and steering
the track’s bottom line by bringing in an entourage of
sponsors to promote racing at Pocono. Bob has also done his
share of racing himself, starting with quarter midgets at age
five.
Senior Managing Partner of the company’s MET subsidiary (Motorsports
and Entertainment of Tennessee), Joseph Mattioli also has a
career that spans 35 years of managing and developing motor
sports and entertainment facilities. He joined Koveleski at
AMRA, having worked with him at Pocono, and also has
experience being associated with such tracks as South Boston
Speedway, Music City Motorplex and Washington D.C. Grand Prix.
CFO Steven Pinson, a former Formula Ford racer, comes with 30
years experience in finance, management, real estate and
acquisition.
The cost involved with the wide range of acquisitions in which
the company is involved has kept it in the red for the last
few months. Revenues for the last reporting period, ending
September 30, 2007, checked in at $278,000, but costs
associated with those revenues were about $330,000, leading to
a loss of $52,000. Even so, revenues were up exponentially
from the $5,000 figure from the same quarter the year before.
Just as there is risk involved in taking the wheel of a race
car (or any type of vehicle, for that matter), the performance
of the stock has been volatile over the last 52 weeks. The
peak for the stock experienced the heights of $1.95 (post
1-for-15 reverse split) as New Year celebrants in 2007 rid
themselves of their hangovers. But the remainder of last year
witnessed a slow slide to the point where the price bottomed
out at 30 cents just as the leaves were turning in October. On
January 17th, AMRA stock registered around the 60-cent mark,
which just might make it alluring to bargain hunters taken
with the excitement of motor racing and a company anxious to
turn a profit from this excitement.
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Although the majority of
AllPennyStocks.com reports are independent, it has received
compensation for carrying the report on American Racing
Capital, Inc., the compensation is three thousand five hundred
dollars by a third-party, WallStreet America for its efforts
in presenting the AMRA profile on its web site and
distributing it to its database of subscribers as well as
other services. This creates an inherent
conflict of interest and readers are encouraged to view the
main disclaimer at
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