Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (80455)	6/23/1999 5:28:00 PM
From: kendall harmon	Respond to of 119973

RACN-this one takes a strong stomach but the company is now trading around book value and the analyst cited expects a rebound. Racing Champions Shares Fall on 2nd-Qtr Loss Warning (Update2) (Updates with closing share activity.) Glen Ellyn, Illinois, June 23 (Bloomberg) -- Racing Champions Corp. shares fell 60 percent after the maker of Nascar die-cast replicas warned of a second-quarter loss on slower sales. Glen Ellyn, Illinois-based Racing Champions fell 10 3/16 to 6 11/16 in trading of 9.3 million shares, more than 82 times the three-month daily average. The company said it expects a second-quarter loss of 30 cents to 35 cents a share, excluding a charge. It blamed slower sales growth for its die-cast replicas compared to last year, the 50th anniversary of the National Association for Stock Car Auto Racing, or Nascar. It also cited weak direct-marketing sales. News of an expected loss caught investors by surprise, an analyst said. The company was expected to earn 17 cents for the quarter, the average estimate of six analysts surveyed by First Call Corp. ''(Nascar) has been touted as such a great industry by the media, and to have them come out with this earnings announcement caught people off-guard,'' said Eric Wold, an analyst with First Security Van Kasper. The stock experienced a run-up on optimism about the Nascar popularity, he said. The company also said it's taking a $6 million charge for the quarter related to its April acquisition of Ertl Co., one of the country's top model kit makers. Wold said he expects sales of Nascar memorabilia to pull out of its slump as new track construction and the addition of new races to the Nascar circuit increases enthusiasm for the sport. Racing Champions also makes and markets Nascar souvenirs, Press Pass trading cards and AMT model hobby kits.