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Old 09-22-2007
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Willy Willy is offline
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Default Deal Skeptics

Jon Asher, Jeff Burk, and many posting members here are not the only ones who have expressed skeptisism over the NHRA/HDP deal.
For whatever it's worth, read more on the Message Board here.

http://finance.yahoo.com/q?s=HDP
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Old 09-22-2007
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Default More information

There is alot to wade through in SEC Filing 14A, but interesting bits can be found.

http://google.brand.edgar-online.com...0971&Type=HTML

Expect higher ticket prices.
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Old 09-22-2007
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I know there are alot of rights they are buying, but the basic package of office buildings, 4 prime race tracks and property is worth the selling price. The same goofs from nhra are gonna run the show. They will probably lease the properties to people for a set rate and start recouping their money. If they choose to do anything that hasnt been done lately promoting old footage, shirts, licensed products its all money they can make on top of the deal. I really doubt a huge corporation is gonna be too closely involved in running the tracks. Someone will lease them, run them, take the responsibility and be the first to be sued when something bad happens. Otherwise people will just start suing a huge corporation who would decide to close them down and start planting condo's.

Regardless, it is beyond anyones control. If you want to start buying up stock in HD to get a say in what happens, I guess thats all you can do.
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Old 09-22-2007
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Quote:
Originally Posted by Willy
Jon Asher, Jeff Burk, and many posting members here are not the only ones who have expressed skeptisism over the NHRA/HDP deal.
For whatever it's worth, read more on the Message Board here.

http://finance.yahoo.com/q?s=HDP
What I found interesting was the guy saying he contacted both NHRA and HD on behalf of a client who was a potential contingency sponsor, and has yet to hear back from either. That doesn't sound right to me, because I've always gotten relatively prompt answers back on my e-mails. But if true, it makes you wonder what is going on.

I just can't get excited about this deal. For reasons I've said before. But I know if I was buying NHRA, I sure would have made a showing at Indy, if not all of the events, after the announcement was made. If for no other reason than to get to know as many people involved as possible. Hell, why wouldn't you buy a ticket and sit in the stands anonymously at a race, and get a feel for what the fans are about? I guess that would make too much sense.
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Old 09-22-2007
anotheridiot anotheridiot is offline
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the only reason they would sit in the stands would be to see how long they sat there, how were they dressed, and where did they go when they left their seat.

This is not Bruton buying the nhra because he loves the sport, he wants to carry on the tradition and keep racing going.

This is a corporation that would probably just like to see the bottom line at the end of an event and a paper trail.

A corporation buying a non profit deal has never been able to show a profit is got to be the fishiest situation in any deal anytime. Its like a corporation buying your local church. A corporation buying the Jerry Lewis labor day telethon. The first question is why and the next question is how and the third question is the IRS coming down on the nhra that has been non profit for so long just to turn into a 125 million dollar payday.
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Old 09-22-2007
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Quote:
Originally Posted by anotheridiot
the only reason they would sit in the stands would be to see how long they sat there, how were they dressed, and where did they go when they left their seat.

This is not Bruton buying the nhra because he loves the sport, he wants to carry on the tradition and keep racing going.

This is a corporation that would probably just like to see the bottom line at the end of an event and a paper trail.

A corporation buying a non profit deal has never been able to show a profit is got to be the fishiest situation in any deal anytime. Its like a corporation buying your local church. A corporation buying the Jerry Lewis labor day telethon. The first question is why and the next question is how and the third question is the IRS coming down on the nhra that has been non profit for so long just to turn into a 125 million dollar payday.
Don't know about the IRS, but remember, HD isn't buying the NHRA, just it's professional assets, real estate, and broadcast rights. NHRA could always have sold real estate and other assets. And since the non-profit NHRA will remain, it shouldn't be an issue. But I don't know.

As for the other, you know the answer. If they were interested in the sport, they would be all over the place, trying to see how to make it better. And that would include sitting with some fans, and just experiencing what they experience. Better equals more fans, and more money which should equal more profit, for HD.

According to "the Agent", Compton has a five year deal with HD Partners to be CEO. So maybe THAT's why they feel they don't need to actually go to the events. And, while leaving current NHRA management in place makes perfect sense, in the short term, it doesn't make sense not to be more visible, if you actually care about what you are buying. And that "IF" is really the whole question isn't it?
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Old 09-22-2007
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Quote:
Originally Posted by anotheridiot
Regardless, it is beyond anyones control. If you want to start buying up stock in HD to get a say in what happens, I guess thats all you can do.
One could buy, as I suppose there is some potential in the short term. But looking at the 1 yr chart shows that this thing trades relatively flat, with the exception being a .20 spike after the announcement, a big drop of .30 in the recent market downturn, and since, a steady climb up to around $7.50. Right where it was before the announcement.
Now the filing that I refered to was released a week and a half ago. Outside investors have had plenty of time to digest this, and so far haven't stepped up. Volume has been very low in recent months.
By the way, as an individual investor you would have a vote. But it's the insiders and institutions that have the final say.
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