Indians stock takes hit

January 23, 2009
Back to TopCommentsE-mailPrintBookmark and Share
rowdieDespite year-over-year revenue gains and robust earnings, it appears the economy might have finally caught up with the Indianapolis Indians. For years, this AAA baseball franchise has steamed along with solid attendance and $1 million plus annual profits. Profits for 2008 were $1.23 million.

But now, stock brokers making a market in Indians stock are showing less confidence in this franchise’s thinly traded stock. The franchise too, has pulled back the reins on its stock buyback offer. While the Indians board reduced its stock buyback price from the $21,832 per share it offered last year to $21,328 it's offering this year, market makers are pulling back much harder.

Even though the stock has traded at a 52-week high of $25,000 and a 52-week low of $23,250, market makers are currently only offering between $17,500 and $17,250 per share. Since there are 767 outstanding shares remaining, that puts a paltry price tag of $13.4 million on the entire franchise. The team's buyback offer price puts a $16.4 million value on the franchise.

Two factors would seem to put Indians stock in strong favor. First, the team has been a consistent financial winner, despite economic downturns. This coming season will no doubt be a stern test. Second, since the franchise is retiring all shares it acquires, it would stand to reason that the value of the remaining shares would increase since they become a larger slice of the pie.

Sports business experts said when market and consumer confidence returns, the team’s value will be at least $25 million, putting the share price at more than $32,500. Until then, the market makers are likely to continue their low ball offers.
ADVERTISEMENT
  • I think the stock is still worth an easy $25,000 per share from what I've seen of the financials. Interestingly, Forbes just put out a report about how many pro franchise values are over-estimated. But I still think the Indians is a very solid buy, certainly at $21,000 or $22,000.
  • No wonder the stock is taking a hit... if the guy in the picture is the CFO, they won't last the summer.
  • Anyone look at their 401K lately? Doesn't seem to hard to believe the stock of the Indians is falling like every other one.

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. I am a Lyft driver who is a licensed CDL professional driver. ALL Lyft drivers take pride in providing quality service to the Indianapolis and surrounding areas, and we take the safety of our passengers and the public seriously.(passengers are required to put seat belts on when they get in our cars) We do go through background checks, driving records are checked as are the personal cars we drive, (these are OUR private cars we use) Unlike taxi cabs and their drivers Lyft (and yes Uber) provide passengers with a clean car inside and out, a friendly and courteous driver, and who is dressed appropriately and is groomed appropriately. I go so far as to offer mints, candy and/or small bottle of water to the my customers. It's a mutual respect between driver and passenger. With Best Regards

  2. to be the big fish in the little pond of IRL midwest racin' when yer up against Racin' Gardner

  3. In the first sentance "As a resident of one of these new Carmel Apartments the issue the local governments need to discuss are build quality & price." need a way to edit

  4. As a resident of one of these new Carmel Apartments the issue the local governments need to discuss is build quality & price. First none of these places is worth $1100 for a one bedroom. Downtown Carmel or Keystone at the Crossing in Indy. It doesn't matter. All require you to get in your car to get just about anywhere you need to go. I'm in one of the Carmel apartments now where after just 2.5 short years one of the kitchen cabinet doors is crooked and lawn and property maintenance seems to be lacking my old Indianapolis apartment which cost $300 less. This is one of the new star apartments. As they keep building throughout the area "deals" will start popping up creating shoppers. If your property is falling apart after year 3 what will it look like after year 5 or 10??? Why would one stay here if they could move to a new Broad Ripple in 2 to 3 years or another part of the Far Northside?? The complexes aren't going to let the "poor" move in without local permission so that's not that problem, but it the occupancy rate drops suddenly because the "Young" people moved back to Indy then look out.

  5. Why are you so concerned about Ace hardware? I don't understand why anyone goes there! Every time ive gone in the past, they don't have what I need and I end up going to the big box stores. I understand the service aspect and that they try to be helpful but if they are going to survive I think they might need to carry more specialty parts.

ADVERTISEMENT