Market News First (www.mn1.com) sent field reporter Megan Eaks to Texas Stadium today to film the frenzy surrounding the American Idol auditions. Capturing the demographic and the heart of the 40 million viewers is a constant media pursuit. At MN1.com we have written several articles on small-cap company CKXE, the company behind the scenes, as part of our normal market coverage of stocks under $1 billion market cap. Stay tuned for additional coverage of the Dallas auditions and analysis of the stock as we think this is a unique way to anticipate the upcoming American Idol season.
CKX Inc. (NASDAQ: CKXE) was founded in 2005 by CKX Chairman and Chief Executive Officer Robert F. X. Sillerman, and shortly after, acquired 19 Entertainment from Simon Fuller, creator of American Idol for $200 million.
The company is engaged in the ownership, development and commercial utilization of entertainment content, and owns the licensing rights to the name, image and likeness of Elvis Presley; the operations of Graceland; and an 80 percent interest in similar licensing agreements of Muhammad Ali. The company also owns a share of the rights to American Idol as well as its Pop Idol in Great Britain. Priscilla Presley, among others, sits on the board as chairperson of Elvis Presley Enterprises.
So why haven’t you heard about CKXE? The entertainment industry is booming – why isn’t there a stampede of investors ready to cash-in on CKXE success? Based on information from the most recently filed 10K for fiscal year ended Dec. 31, 2006, the company has over $36 million cash-on-hand, a book value of $371 million, revenues of $210 million and a net income of over $7 million – it seems all the company needs is some star power … Oh, they already have that? Well maybe some street power to boot then.
The company has controlling interests in many media entities that have captivated the public eye, now the stock needs to captivate Wall Street analysts. The only three analysts covering the stock are Craig-Hallum, Cathay and Bear Sterns; CKXE could use a little more attention from some of the big boys, which could attract the attention to the stock that shareholders are looking for.
The company recently launched an advertising campaign to promote the longevity of Elvis Presley and to promote the brand status of Graceland. According to a press release, the campaign will cross all media channels – from broadcast to billboards. But is the campaign to preserve the Elvis legacy or to toss the stock on the street?
Analysts estimate the company may pull in about 21 cents per share in 2007, 28 cents in 2008, and estimate growth at 162.5 percent this year. Though the company isn’t backed with much of an earnings history … it is backed by “The King” and “The Greatest of All Time.”
About Dallas
When most people think of Dallas, they think of amazing barbeque, humidity, the famous TV show by the same name, and the Dallas Cowboys. This would be discounting its huge industrial and financial clout as well as the amazing architecture and trendy art neighborhoods within the city. While oil and cotton were once at the core of Dallas, it’s now considered a great place to go see art and museums … and hopefully for seeing some great singers when there for the Season Seven American Idol auditions!
Venue
Location: Texas Stadium, 2401 E Airport Freeway, Irving, Texas 75062
Lineup/Registration: No one will be allowed to line up prior to 6 a.m., August 4, 2007. Registration begins August 4, 2007 and continues to the morning of August 6.
Actual Auditions: August 6, 2007 / Approximate Start Time: 8 a.m. Line Up: GATE 4 / Look for the “Front of Line” banner.
Parking: $5 Per Car, Per Day / Be prepared to pay for parking each time you park as there are no in or out privileges.
