Shares in the Indians have "plunged" 61% from 15 in
June to 5 13/16 as of last week, and team Owner Richard
Jacobs has seen the value of his team "shrink to around"
$110M, compared to the MLB Rangers who were sold this year
for $250M and the Dodgers who were purchased for $311M,
according to Andrew Barry of BARRON'S. Barry notes that at
$110M, the team has a current value that is less than the
$130M in franchise fees paid by the D'Backs and Devil Rays.
Indians CFO Ken Stefanov: "Our current share price is
ludicrous. We've been incorrectly labeled a souvenir
stock." The Indians' earnings this year "are likely to
trail" '97 due to their elimination in the ALCS and the
absence of the one-time franchise fees which they collected
from the two new teams last year. But the team has said
"that appreciation in the value of the shares more likely
will be driven by enhanced franchise value rather than
earnings growth." This means investors "probably will have
to wait for a sale of the team by the 73-year-old Jacobs to
get a payoff." But Barry concluded, "Even with the
uncertainty over when the team will be sold, the Indians'
stock seems awfully low for a take in one of baseball's
better franchises" (BARRON'S, 10/26 issue). After the
Barron's piece, shares of Indians stock "surged" 1 3/16, or
20%, to 7 yesterday (WALL STREET JOURNAL, 10/27).
