Dale Jarrett Racing Adventure starts it’s IR engine
For years Dale Jarrett Racing Adventure (OTCBB DJRT) has quietly yet steadily built its core business, providing the NASCAR experience to folks like you and I, from the ground up. Without the usual fanfare associated with stocks trading on the bulletin board, they have suffered the usual growing pains including the economic downturn of 911 a year or so after launching their business.
They have funded their company prudently, in part through small private placements from the Jarrett family as well as a few outside parties, but never with any of the “usual suspects”. As a result, they have only issued slightly more than 7 million shares on top of the original 12.7 million issued in 1999 leaving the total number of outstanding shares at under 20 million. Modest salaries to the top executives is another rare example of how this largly unknown company has kept expenses and dilution down while building a company.
Throughout its existence the stock established a trading pattern between a low of $.15 and a high of around $.45. It would move up on good news but it would always retrace in the weeks and months to follow back to its low range. In early 2006 it made a run all the way to around $.80 but once again retraced itself back to its lows. Fiscal year 2006 marked a major milestone for DJRT as they drove themselves into profitable territory. The stock once again moved up briefly on the news but, just as certainly even profitability couldn’t hold it up. At it’s low, the company had a market capitalization of less than $3 million yet here was a company that showed all the qualities people look for in a stock. Growth, profitability, management that was conciencious and thrifty. Still, there was something missing and it was obvious to anyone who owned the stock. There was no investor or market relations program.
Much to the chagrin of many of its shareholders, the company steadfastly refused to “waste” corporate funds to pay to have their stock touted to the market. This is practically unheard of in the wild and wolly world of the bulletin board and the reason is evident. If you don’t blow your own horn as a bulletin board stock, no one else is going to.
We aren’t sure what changed their mind but finally, after 7 years of waiting, the company has finally hired not one, but two groups to take their story to the market. In addition, these companies claim to bring access to the capital the company needs to further their business plan. Word is it’s even “clean” capital, free from the toxic terms that kill so many little companies.
The day before the announcement, the stock moved up nicely on volume well over 300,000… a big day for DJRT and yesterday it moved up again on a quarter million shares. Finally the company has pulled the pace car off the track and is putting the IR petal to the metal and we can only say “it’s about time!!”.
What’s more, we’re hearing rumors that one of the insiders has either sold or agreed to sell all his stock, over a million shares, to the new group (or an associate of it). If this is true, this means the largest roadblock to a sustained higher price has been removed and the stock should benefit greatly from this development. Stocks that are not heavily traded can really suffer when a holder of a large block of stock is a committed seller.
Overall, yesterday’s news is a major development in the life of this company. With capital, CEO Tim Shannon and crew can get serious about building that track in Las Vegas and executing other plans to accelerate the growth of this company. He’s already proven he is rock solid and capable of building a company on limited funding. It will be exciting to see what he can accomplish with sufficient capital. This is one to buy below $.50 and hold.
