The 504 is for a separate company called Sports Media, that will be partly owned by Chartwell. It is separate from the scholarship compan y (NCRA), the Blue Chip magazine, etc. which are all under Chartwell.
I just found this board, so here's some info:
THe main thing holding back the stock is the release of its audited financials. They are expected within two weeks, accd to company (which I bet means 5 - 6 weeks,the way these things always seem to go).
The company is saying that 50 cents a share is possible by year end, and they hope to see $3 some time in '97. That wouldn't be half bad, I think.
Will it happen? I think they have a lot of good stuff in the works. They just got some financing, and they have a lot of takeovers in the works. ALso, theyhave a deal pending for franchising the NCRA business. They have signed up the same guy who did franchising for Subway, Hard Rock Cafe, and a few others. The guy is major league, and his firm has agreed to work with Chartwell because he sees real potential there. I don't think he'd take on a company he didn't think could make it.
Also, CEO Janice Jones has proven track record, bringing two companies from pennies to around the $10 level in the past, before selling them off. She knows what she's doing. And in start ups, management is 90% of the story.
Have a little patience and I think you could see a great return on this one. I know Jerry Wenger says sell at 25 cents, but I think he means his usual "sell half your position." That is, if you get it at 12 cents and it doubles, sell half to get your money back, and the rest is free. I think that's sensible. But I wouldn't sell it all at 25 cents, because I think the odds of it going substantially higher over 9-15 months are significant. |
