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.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (22882)	1/25/1999 12:40:00 PM
From: Paul Butler	Read Replies (1) \| Respond to of 120523

Jenna, Archie McAllaster talked about PAW in Barron's roundtable over the weekend. He's thinking $20, they're up $2 to around $11 today. As for your call of 25 cents, does look like a one-time occurence...are they selling off assets? Thanks, Paul MacAllaster: I should have brought a puck with me to illustrate this next idea. A Big Board stock called Florida Panthers Holdings. The Florida Panthers were offered to the public at $10 when the company was just the hockey team. The stock ran to 32 or 33. Then [H. Wayne] Huizenga, who controls it, started to buy hotels and marinas in Florida. He has three or four hotels, around Boca Raton and over in Naples. He acquired all that while the stock was in the high 20s, buying the resorts for stock. Florida Panthers stock is now about 9. He had his first profitable year last year, four cents a share. I would say '99 earnings should be 25-30 cents. The hockey team is still in there, but now it is only a small part of Florida Panthers Holdings. However, the hockey team has a brand new stadium that holds 19,000 fans, which was put up by the county down there. The team gets the extras. So the hockey team, which lost about $8 million last year, ought to make maybe $8-$10 million this year. Black: I've been in that stadium. Very comfortable. MacAllaster: My other point is that this company shows a book value of something over $400 million, has about 33 million shares outstanding. So the book is $12-$13 a share. At 9, the stock is almost trading at its low, which I believe was 7 1/8 last year. They have also let it be known that, within the next two years, they will probably spin out the hockey team. I would say the hockey team is worth perhaps $4 a share, just on an earnings basis. Zulauf: Where does the hockey team make money? On tickets? MacAllaster: Also on parking, concessions. They have everything, basically. Television rights, too. Huizenga actually owns the sports channel down there in Florida. I think it's also worth mentioning that while they show a book value of $12-plus a share, I'd say their real estate alone is easily worth $16 or $17 a share, the hockey team is worth $4. So I'd say the stock is worth $20.