A WHOLE NEW MEANING TO STOCK CAR RACING
A new issue, Speedway Motorsports Inc., debuted on the NYSE
Friday with a "solid push out of the gate," rising 5.5% from its
initial offering of $18/share. The stock closed at $19/share.
In betting on Speedway Motorsports, a company that owns of two
racetracks in NC and GA, "investors appear to be trying to hitch
a ride on the exploding popularity of stock-car racing."
Analysts said they were not surprised by the stock's strong
start, "given the public's passion for the sport. The issue's
staying power is much less certain, however." Steve Samblis,
analyst with Empire Financial Group: "Once the enthusiasts are
gone, I don't think any portfolio managers are going to support
the market. A lot of people are going to be buying a share and
frame it on their walls." The WALL STREET JOURNAL also
chronicles some of the financial problems that have plagued CEO
Bruton Smith in the past (Emory Thomas, WALL STREET JOURNAL,