A "plunging stock price, class-action lawsuits and
executive departures have punctuated the end" of '99 for
Action Performance, according to Bill Koenig of the
INDIANAPOLIS STAR. But company Founder & CEO Fred Wagenhals
said that Action's "basic business -- marketing die-cast
models of race cars, apparel and other collectibles -- is
sound." Wagenhals: "Sometimes you need to get your
(expletive) kicked to get back to basics. I went back to
basics." The drop in Action's stock price from a high of
around $37 in July to its current price of around $11 has
"spurred speculation" that the company might be "ripe for a
sale." But Wagenhals said, "We're certainly not interested
in selling our company at these prices. The company never
has been for sale." Despite the company's recent struggles,
Wagenhals said that the company's revenue will grow by 15%-
20% in FY 2000, as he expects to "announce additional
licensing deals with racing teams." While he hopes to see a
diversification of Action's products, Wagenhals expects that
NASCAR collectibles "will still make up about" 70% of
Action's revenues. Banc of America Securities analyst Gary
Cooper said that while the demand for NASCAR products
remains strong, "he has concerns about Action's ability to
quickly design and distribute die-cast cars, which are
manufactured in China" (INDIANAPOLIS STAR, 12/30).
