Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
A Body Blow by Daniel Kaplan
Summary: Pink-sheet stock International Fight League (OTC:IFLI) went public in November and trades at about $3 -- down from an IPO value of $8.50. Its sport is a mix of wrestling, boxing and martial arts so rough that it's illegal in some states. The question for investors is whether the sport is a fad, or an up-and-coming wrestling replacement. Fox Cable president Bob Thompson calls says, "It has struck a nice chord between the flash of professional wrestling and the sport of boxing." But the company lost $9.6 million in 2006 on $2.4 million revenues. The company warns it may not have enough insurance if a fighter is killed or severely wounded. And fights of its more popular competitor UFC-Pride are aired on Spike TV. "Given the company's lack of profits and big challenges, the stock is unlikely to rise anytime soon." All said, it's a gamble at best.
Related Links: International Fight League Stock Launches Again (24/7) • 60 Minutes Segment