Panthers stock debuts 11/14/1996 The Tampa Tribune Page 7 (Copyright 1996)
Entrepreneur Wayne Huizenga may have scored with the initial public stock sale of his Florida Panthers hockey team, but investors could be heading to the penalty box.
"Part of the stock's appeal is the popularity of the NHL and the Florida Panthers franchise," said Ryan Jacob, research director at the IPO Value Monitor. "But from a fundamental standpoint, there are no earnings on the horizon until at least 1998 or even 1999 - and even that's in question."
Florida Panthers Holding Inc. late Tuesday sold 2.7 million shares for $10 each. The stock opened at $11.50, edged up to $12 and closed at $11 a share on the Nasdaq Stock Market. Another 4.6 million shares will be sold at a small discount to Huizenga's family and to team executives and directors.
It's likely Huizenga's reputation is doing more to attract investor interest than the team's shaky finances.
"If you've got "sports,' "Huizenga' and "Blockbuster' in one story, people want to read it," said Steven Samblis , president of Samblis Financial Corp. in Longwood.
"The fundamentals are weak, but from a perception standpoint, I think the stock will really crank. That's not bad - if you understand what you're looking at. Stocks run for different reasons, and if you understand those
reasons, you can make money."
The Panthers, last season's runner-up in the chase for hockey's Stanley Cup, lost $25.5 million in the fiscal year ended June 30 on revenue of $33 million. Ticket sales totaled 70 percent of the team's revenue. |
