Why International Speedway Will Keep Zooming

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, motorsports entertainment promoter International Speedway (NASDAQ: ISCA  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at International Speedway, and see what CAPS investors are saying about the stock right now.

International Speedway facts

 

 

Headquarters (founded)

Daytona Beach, Fla. (1953)

Market Cap

$1.6 billion

Industry

Leisure facilities

Trailing-12-Month Revenue

$612.3 million

Management

CEO Lesa France Kennedy (since 2009)

CFO Daniel Houser (since 2008)

Return on Equity (average, past 3 years)

4.9%

Cash / Debt

$162.6 million / $276.6 million

Dividend Yield

0.6%

Competitors

Speedway Motorsports

Dover Motorsports

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 169 members who have rated International Speedway believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star joryko, succinctly summed up the bull case for our community:

- Just landed a the "largest media rights deal in NASCAR's history" with a 10 year deal with NBC starting in 2015
-This is only months removed after landing an 8 year-$2.4 billion deal with FOX
-Essentially a content provider to whomever would like to pay them, allowing strong positioning regardless of cable's future
-Dropped its share count from 53 million in 2007 to 46 in 2012, is eyeing future buybacks with a solid balance sheet

Long story short, International Speedway Corp. hasn't been given enough credit for essentially raising its media rights revenue by 50% or more with its new NBC deal. Did I mention media rights account for 46-50% of the company's overall revenues?

I see this one as a special situation type buy and will hold it until the market realizes the value of its new media contracts correctly.  

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, International Speedway may not be your top choice.

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  • Report this Comment On July 29, 2013, at 9:54 AM, cescarbr wrote:

    "Why International Speedway Will Keep Zooming" - and then the next day MDP issues a Sell to all members and the stock immediately starts going down. Seems like everyone is not on the same page at MF.

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