NASCAR Track Owners Sell off After New TV Deal is Announced

Speedway Motorsports (TRK) and International Speedway Corporation (ISCA) dropped on very heavy volume after analysts trimmed future earnings estimates. The new TV deal that NASCAR just signed will significantly reduce the future TV rights revenue streams of TRK and ISCA. On the other hand Dover Motorsports (DVD) was up slightly because the impact will be more muted since it owns only one track that hosts a Nextel Cup race compared with TRK's six and ISCA's twelve.

Do not buy ISCA and TRK until the full impact of the new TV deal is understood. DVD is still on the upside but it is a very volatile stock so be careful.

After a three-year upside ISCA has moved to the downside.

After a two-year upside TRK has made a triple top and is on the downside.

DVD shows a very volatile price pattern with frequent changes in price direction.

Note:
ISCA owns California Speedway, Chicagoland Speedway, Darlington Raceway, Daytona International Speedway, Homestead-Miami Speedway, Kansas Speedway, Martinsville Speedway, Michigan Speedway, Phoenix International Raceway, Richmond International Raceway, Talladega Superspeedway and Watkins Glen International.

TRK owns Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe’s Motor Speedway, and Texas Motor Speedway.

DVD owns Dover International Speedway (hosts two Nextel Cup races), Nashville Superspeedway, Gateway International Raceway and Memphis Motorsports Park.