In a single press release, Dale Jarrett Racing Adventure (OTCBB: DJRT) announced the addition of a new profit center while simultaneously expanding and clarifying its vision for the future of the company. The company’s new World War II Adventure is an significant milestone in this exciting company’s history.
According to the World War II Adventure’s website at http://www.WorldWarIIAdventure.com, participants spend a weekend immersed in history as they relive a day in the life of a B-17 bomber as they prepare for participate in a recreated deadly bombing run over occupied Europe flying in the Liberty Belle, a meticulously restored vintage B-17 Flying Fortress.
According to Tim Shannon, CEO of DJRT, the company has spared no attention to detail in order to assure the participant of a totally authentic experience, the kind of adventure that creates lifetime memories. This adventure is without peer in the industry.
As impressive as the World War II Adventure is, we are equally impressed with the direction the company has chosen in order to expand its business. We have spoken before about the opportunity for growth DJRT enjoyed with its flagship business established and growing organically and we encouraged you to watch for the company to make its move. Well, the move has been made and we applaud their choice.
Dale Jarrett Racing Adventure is no longer just a NASCAR racing adventure company. It has suddenly morphed into an adventure/entertainment company that delivers the finest quality experiential adventures that allow participants to step out of their “real life” and enjoy a variety of once-in-a-lifetime adventures.
Given the size of the entertainment and theme park industries, the company has just stepped out of a niche market representing perhaps $200 million a year into a broader market that accounts for tens of billions of dollars in annual revenues.
With the mid-market family oriented side of the industry being well represented by the likes of Disney with Disney World and Disneyland and Six Flags, Inc with amusement parks and theme parks throughout the nation, Dale Jarrett Racing Adventures is focusing instead on the under represented niche market of high end adventures.
The markets are full of examples confirming the success of high end niches in a wide variety of businesses. IMAX, with its 70′ high screens and surround sound is very successful and dominates the high-end movie and theater business. Walt Disney raised the bar and created theme parks where before there were only amusement parks. Channel showed the world that you could create then dominate a profitable niche by declaring that desirability was not only determined by the quality of a product being sold but also by the label and the fact that it was priced far beyond the reach of all but the super rich, thereby identifying owners as rich and powerful simply by the purse they carried or the dress they wore.
We see DJRT taking the same approach in the entertainment/adventure industry. Tim Shannon has built a successful company by creating a superior product to capture market share in the NASCAR racing adventure markets. Now they are taking their core competencies and applying them to offer a variety of top shelf adventures. We think this is a brilliant strategy and one that will allow Dale Jarrett Racing Adventure unlimited potential for growth. We look forward to watching this story unfold and suggest you give serious consideration to adding this gem of a company to your speculative portfolio. The stock is at historic lows and has the fundamental strength to mitigate the risk while offering some pretty exciting upside.
For more information on DJRT, click here.
Note: We were paid $2,500 by the company to provide consulting services for the month of October. This includes featuring the company on this website and blog. For more information please read our disclaimer.
