quote:Originally posted by blackpearlbenz: Looking to invest in the IFL but had a few questions. Been away from stocks for awhile opening my own MMA gym.
What is a fair market cap for IFLI?
Were there an additional 50 million shares that were added to the o/s and have they been converted?
Has there been any talk about uplisting?
Nice trade right now...Risky "investment" imo...MM's will run it long enough to unload their shares, then who knows what will happen...I'm a huge MMA fan as well, but you are investing in the company, not the sport...Check out the January 8-K...You may also find the Houston Chronicle article below of interest (the bolded paragraph especially)...JMHO...Good luck with your decision...
Despite financial issues, IFL hopes to continue the fight Team-based MMA league deals with sea of red ink
By STEVE SIEVERT Copyright 2007 Houston Chronicle
TOOLS Email Get section feed Print Subscribe NOW Comments Recommend The International Fight League has taken its best shot. Is it enough to remain a contender in the world of mixed martial arts?
In the past seven months, the 12-team league has attracted the largest crowds to watch MMA events in Oregon, Illinois, Georgia and Washington state. In addition, the 2-year-old league features some of the best young fighters in the sport in heavyweight Ben Rothwell and lightweights Chris Horodecki and Bart Palaszewski.
The league also is bleeding red ink.
Given the IFL's status as a publicly traded company, its financial status is an open book, and so far, it's a rough read. In the first three months of 2007, the company lost $7 million, pushing the league's total losses since it was founded to more than $16 million. The company also reported that its cash balance of $9.2 million at the end of March would not be adequate to fund operations through the end of the year.
"We didn't get into this business to be around for one year and fizzle out," said league co-founder and commissioner Kurt Otto. "We're in the midst of building this business, and we started from nothing. We are spending the money wisely and spending it as if we only have a couple of bucks left."
In its first full season this year, the IFL has made significant progress. The league expanded its television presence by signing a deal with MyNetworkTV, putting the league's weekly IFL Battleground show on a broadcast outlet in 100 million households.
The IFL also put more programming on Fox Sports Net and distributes league content on DVD through Warner Home Video. According to the league, its two TV deals generate an audience of more than 2 million viewers a week.
Getting its fighters in front of fans has not been the issue. Realizing revenue from those efforts is another matter. The league reported revenue of $1.6 million in the first quarter. Staging its four live events during those three months cost $5.6 million.
While the IFL certainly isn't the first startup to struggle in finding its financial footing, it is difficult to see how that cost structure is viable long-term. Investors are skeptical. The league's shares closed Friday at $1, down from a high of $17 a share in January.
"There's extraordinary interest in the sport right now," said IFL co-founder and CEO Gareb Shamus. "Without getting too much into the financial side of it, the great part is that we have a sport that is exploding all over the world."
While Shamus declined to discuss specific steps being taken to shore up operations, the company plans to seek approval from shareholders at its annual meeting later this month to double the number of shares it can issue to raise additional capital. The move is a lifeline to secure much-needed cash.
I remember reading that article. Thanks for posting it again. I am trying to deciede whether the compay is worth a market cap of $100 million dollars (based on todays share price) while bleeding money out the back end. Dont get me wrong, I think it is probably an excellent short term play but I am looking for an 'investment' MMA stock. Guess Ill keep searching or buy IFLI at a lower price. Thanks for your help. Oh and I will probably add a small position tomorrow just for fun.
Posts: 134 | Registered: Apr 2006
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Heres an idea. I just started researching Fairtex which is the number one supplier of MMA equipment etc. They are CONSTANTLY selling out of their equipment, especially things like Thai pole bags. Trust me, I know, I just opened a MMA gym and over half of my equipment was on back order and took weeks to get.
My idea is to find any suppliers that Fairtex uses in Thailand (where all products are made) and find a publically traded stock connected to it. Whether its the company that supplies the stuffing for the bags or the one that suppliers the leather etc, there HAS to be a connection we can find.
Will let you know as I research further.
Posts: 134 | Registered: Apr 2006
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Not to mention they sponsor the soon to be middleweight champ Rich Franklin (one can hope lol)...If you are going to go that route, another company you may want to look into is Century...They make everything from our shields and bags to the Jiu-Jitsu mats we use...Even my mouthpiece is made by Century lol...The other thing they have going for them is the average person can go to a sporting goods store like Dick's and buy their products...
Good luck with your research...Just don't let your love of the sport interfere with your financial judgement..."Never get emotionally attached" I had to learn this the hard way...See BKMP for example...That bag cost me alot more than the one from century and I can't even punch it...lol