Dale Jarrett Racing Adventure has evolved from a struggling startup with a great idea into a solid profitable company with a world of opportunity at its doorstep. What's more, they have accomplished this while keeping shareholder dilution at an absolute minimum, one of the rarest things you will ever see in a bulletin board company. Now they sit in the catbird seat, tuned into the most popular spectator sport in America, a sport rich from branding and licensing revenues, and, what's more, they're led by a management group that includes one of the most popular and respected names in racing, Dale Jarrett and his family, offering a gold mine of branding opportunities as they move to capitalize on their growing success and momentum.

 

 

 

 

Symbol: DJRT
Recent Stock Price: $.17
1-3 Month Target: $1.00
12-24 Month Target: $2.00
Strong Buy Recommendation  - August 28, 2007

Company website

SEC reports

We like it for a number of very solid reasons. In fact, we've been following it for several years waiting for just the right time to recommend it. We think now is that time. Our reasons are simple and they're the kind of reasons that make investors and traders a lot of money with a stock. The smart money will get in now and enjoy the short term as well as the long term ride.

To win on the bulletin boards you need buy the right stock at the right time. When certain conditions come together, you can substantially increase your opportunity for profit while greatly reducing your exposure to loss. Smart investors and successful traders all agree, timing is everything. Knowing when to buy is the key to having an opportunity to sell at a profit. Today, right now, is the time to buy DJRT to lock in the opportunity for profit down the road. Don't wait till it is over $.60 and headed to $1. Get positioned now, strap yourself in and get ready for the market ride of a lifetime. We think this stock is about to make another big move.

HERE IS OUR RECIPE FOR PROFIT ON THE BULLETIN BOARD

• Low market cap

• Low float

• Solid company - (reduced downside risk)

• Stock at the bottom of its trading range

• Volatile when active

• Celebrity participation

• Positive news on the horizon

• Strong industry

 

DJRT has them all!!

 

The basics

 

• Outstanding shares - 19,993,502 (it was 12,335,000 when they started in 1999 and they never have reversed the stock. This is almost unheard of and one of the reasons we really like this company and this stock)

• Market capitalization - $3,398,895

• Float - 6,400,000 +-

• Revenues - Over $2,000,000 for 2006 and climbing

• Profitable - YES!!!!!

• P/E Ratio is 8.5 with $.01 in earnings for first 6 months

• Volatile and at the bottom of the trading range - Trading range $.15 - $.84 with little difficulty moving up on volume

• Celebrity participation - Dale Jarrett - one of the most respected names in NASCAR® and racing. Not just a licensing agreement either. The Jarrett family is actively involved in the company.

• Positive news on the horizon - Company just published its second quarter report confirming another profitable quarter. This follows their first profitable year in 2006. This is an important and meaningful milestone.

• Strong industry - NASCAR may be fiscally the most lucrative sport in America. It has enjoyed phenomenal growth and success and the fans are among the most loyal in the world. In addition it is one of the most intelligent licensing schemes we have ever seen. Possessing one of the most respected names in arguably America's most successful sport opens incredible opportunities within and beyond their current operations. Opportunities such as:

• Consolidation -

  • There are numerous smaller racing schools that are, in our opinion, ripe for the picking. DJRT is one of the largest as wekk as the only public company in the racing adventure/entertainment industry. As a result it's perfectly positioned to begin consolidating the market.  Markets love an intelligent acquisition oriented company. So do we! What's more, acquire enough of them and you become an acquisition target yourself or you become strong enough to approach the largest racing school in the industry, one that is grossing more than $30 million annually. That is something we'd love to see happen. 

• Entertainment -

  • Racing adventures are only the tip of the iceberg for the "adventure entertainment" industry. As a profitable company, management, along with the Jarrett family, can begin to explore all varieties of entertainment oriented opportunities to increase revenues and profits while exposing the company to a much wider investing audience. Last year, DJRT participated with the Jarretts in producing a reality TV program around their racing program. It played on national TV in conjunction with a major racing event. Tied in with one of their primary sponsors, it was considered by all to be a big success. This kind of branching out gives us a glimpse into the kind of exciting things we can look forward to in the near future now that DJRT has become a profitable company.

  • We can also imagine this now profitable company acquiring or building its own race track and creating a regional entertainment center focusing on "adult oriented adventures" instead of cartoon characters. We believe there is an unfilled demand for this kind of idea and that's just the kind of thing DJRT could use to propel itself into a much larger entertainment company. 

• Branding -

  • Imagine for a moment how many industries the "Dale Jarrett" brand could benefit. Dale has already shown what he can do for UPS. They paid him record fees to have him as their spokesperson. He literally raised the bar for the entire NASCAR industry when he announced the size of his contract with them following his Winston Cup Series championship. This kind of marketing power translates well into any number of other businesses. Jarrett has already demonstrated his success in bringing his brand into an automobile dealership in North Carolina. We think the list of markets the Jarrett name could work well in is extensive but here are a few we have identified.

    • Entertainment adventures (boats, planes, thrill rides etc)

    • Quick Lube shops

    • Trucking and truck stops

    • Auto parts stores

    • Auto dealerships

    • Internet based driving schools

   

  This list is far from complete but you get the idea. The sky's the limit when it comes to how big this company can become and many are the options available to this sleeping giant. We're looking for 2007 to be a transformational year for DJRT, one that will see the company's stock reaching a new trading level and saying goodbye forever to sub $1 trading. Based upon achieving positive earnings, we think this is the year when the company shifts into a higher gear and makes its move. The added good news is this. If we are wrong, you will still be able to make some incredible trading profits off DJRT's annual run-up. With the really good news we have been told is coming, this year's move should be impressive by comparison.  Either way you will want to have your position built when that occurs. Don't wait for the stock to get to $.75 and beyond before saying to yourself "man, I shoulda-hadda-oughta picked it up when it was at the bottom". Do yourself a favor, put a few thousand dollars worth of DJRT shares away today, then continue to acquire when the opportunity arises. We're convinced, this stock is taking off and we encourage you to get in early to maximize your profits.

The stock is currently at the bottom of its trading range and its about to take off. Why? We'll tell you.

 

1. HISTORY SAYS THE STOCK WILL GO UP SOON. The stock historically has a trading range of between $.14 and .74  without profitability. With the company turning profitable we think this trend will continue and grow as more and more investors catch on to the fact that DJRT is one of the few good long term investments with incredible short term potential.  It is about as consistent a stock as we have seen when it comes to its trading range and we're convinced it will repeat this trend again now. Don't miss this exciting profit opportunity. We are convinced this is one stock you can trade and invest in with confidence.

2. THE MARKET IS ABOUT TO TAKE NOTICE. In 2007, the company has finally made moves to increase its focus on creating value for the shareholders. We notice investments being made in the are of investor relations or market outreach programs. Although initial efforts have not met with the greatest success we applaud the company's efforts and think this will continue until they finally initiate a successful campaign and the stock really takes off. Prior to starting DJRT, Tim Shannon, the company president ran a very successful IR company so he knows how to get the job done. We look for more of this activity in the months to come. As a result, the stock is about to get noticed by more market reports. In other words, its a stock whose time has come. Building a company to profitability like DJRT has done, is the kind of thing stock analysts and watch sheets like to acknowledge. We think more truly independent stock reports are going to sit up and take notice as more profitable quarters are reported and that will bring even more attention to the stock. After all, the stock is trading at 8.5 times earnings. Positive attention means more buyers and more buyers, when you have a low float and evidence that management cherishes its stock, means solid moves up. Ours may be the first positive report but we're betting it won't be the last. Watch for more in the weeks and months to come. You will want to build your position before these reports begin to get published. The express train to profitability is about to leave the station. We suggest you climb onboard now.

3. THE COMPANY CAN NO LONGER WAIT TO PROMOTE ITSELF. Now that the company has reached profitability, it's time for the company to start promoting itself to the investment community. The company has shied away from throwing a lot of money into the stock promotion machinery to this point believing that when you are in the early phases of growth and not profitable, your support will be fleeting at best and often not the top tiers of market supporters. So, they have focused their energies and their resources into building a profitable company first and saved their shareholder money and stock for a time when a little promotion can to a lot of good. We believe that this is the time we will begin to see the company begin to strategically invest in some market awareness programs. Not only does it make sense from this perspective, we think there is another reason management will embark on an investor's awareness campaign. It's time to start using the stock as capital!      ALERT!!! The company just announced they have hired not one but two companies to handle their IR needs. The stock moved up prior to the announcement and again following the announcement. Our research indicates these are quality people and we are convinced more than ever that this stock is headed higher and a lot faster than originally thought. This may be the last opportunity ever to buy this stock under $.50. IR was the final piece to the puzzle. Don't wait on this one. It's on the move already.

4. THEY NEED TO USE THE STOCK AS CAPITAL. Stock as capital? That's right! One of the primary reasons for being a public company is the ability to use the company's stock as capital. Once profitable, DJRT will be in a perfect position to begin to consolidate the industry or grow by acquiring other companies in compatible businesses. Consolidation means acquisitions and acquisitions are usually done with stock.  This company likes its stock too much to use it at its current levels. We'd like to see this stock get beyond the $1 before any thought of growth through acquisition is considered. Yet, for the company to implement a plan beyond simple organic growth, it will be necessary to use the stock either through an offering or as capital in acquiring other companies. Either way, they will need to invest in a market awareness campaign to get the stock up to where it belongs. Now that they are profitable they can afford to invest in a program to increase shareholder value. What's more they have all the reasons in the world to do it. This is the year for DJRT to start blowing its own horn. We're impressed with the determination and professionalism management has shown in growing this company to profitability. We think they're smart enough to know that this is the year to have the coming out party. It is the only logical thing to do. The time to build a position in DJRT is before the initiative begins. That time would be NOW!

 

 THE CHART TELLS THE SAME STORY - NOW IS THE TIME TO BUY FOR MAXIMUM PROFITS. $5,000 INVESTED IN DJRT IN DECEMBER 2005 TURNED INTO MORE THAN $20,000 BY FEBRUARY. IT HAPPENED AGAIN AT THE BEGINNING OF 2007 AND WE THINK IT WILL HAPPEN AGAIN NOW.

SUBSCRIBE TO OUR FREE ALERTS

Got a company you think should be featured here? Let us know by

CLICKING HERE