Dale Jarrett Racing Adventure is a company and a stock we have followed for some time now. We like the company, and we like the product. Providing the public and corporations with what they call “full throttle living” adventures, DJRT brings the true NASCAR experience to individuals at public events and through special corporate events.
Still, DJRT has more to offer as an investment than being one of the most exciting companies being traded publicly today. DJRT is also unique among bulletin board companies. The company has a 10 year history of building a company from scratch into a fundamentally solid company with growing revenues and an exciting yet believable plan for the future.
The flagship of Dale Jarrett Racing Adventure is their highly respected NASCAR racing school. Featured at tracks across America, Dale Jarrett Racing Adventure through public events and corporate events provides ordinary people with an extraordinary experience, the opportunity to drive an actual NASCAR style race car around real NASCAR tracks at speeds approaching actual professional racing conditions.
Some people jump out of airplanes or walk across fire for the excitement and the adrenaline rush. Others scale cliffs or ski dangerous slopes but DJRT customers say it over and over again, nothing holds a candle to driving a NASCAR race car around a banked oval at 150 mph when it comes to sheer excitement and total focus. DJRT got it right when they described it as “full throttle living.”
DJRT’s stock has provided serious speculators with an exciting and profitable ride as well. Because Dale Jarrett Racing Adventure prefers to invest its positive cash flow into building the company instead of expending large amounts of money on continuous promotion of its stock, from time to time the stock can, for a brief period of time, fall off the investing public’s radar screen allowing it to fall to levels we consider far below it’s reasonable value. Just as consistently, situations converge and the stock is once again “discovered” and it moves solidly back up to more reasonable values in very short order.
With more than $.035 per share in current assets, the bulk of that in cash, and revenues of almost $.11 per share, we think this stock is trading significantly below its justifiable value at $.065 per share and can justify acquiring up to $.20 when the stock is out of favor. Just don’t chase it. When developments justify buying it higher, do so, as we see this stock as both a great stock to trade short term as well as one to build a position for the long term. Management has proven its commitment to protecting shareholder value even while they have not always directed capital resources for ongoing promotion to promote share price. We applaud this approach.
We also favor the idea of taking a some principal and even a little profit off the table as the stock moves back above $.375 but not clearing the decks. As the company continues to implement the next phase of their growth strategy, we think the time will come when the stock doesn’t retrace and you don’t want to be looking back and wishing you held on to some. If it does retrace, simply restock at the bottom and get ready for the next run. Anyone following this strategy has made extremely good money off this stock over the past few years. Of course, backed by solid fundamentals and the very real involvement in operations and management by the Jarrett family further lends credibility to this stock as a solid investment.
Technically this stock is about due for another rally within the next few months. We think this would be a great time to start accumulating a position. But don’t take our word for it, check out the company and the filings and make up your own mind. You can find their website at Racing Adventure.com
Note: Dale Jarrett Racing Adventure has hired us for the month of October to provide consulting services. We are being paid $2,500 for this service which includes featuring DJRT on this site. This blog represents our opinion of the stock and does not necessarily represent the opinion of Dale Jarrett Racing Adventure management. For more information check out our disclaimer.
