Will someone explain what is happening to the CART stosk today and why.

**Mackie** · 08-18-2003 02:47 PM

This morning I almost did a "Matt," only I was going to bite off 1,000 shares. I had a day trader here that was going to do the deal as soon as the market opened. Luckily, a casino dealer myself, and seeing every day how hopeless gambling is in any form, I got cold feet. I was sure that because of what happened after the market closed on Friday, signifying that there probably would be an attempt to buy up all the remaining stock needed and take "the company back to the private sector, that the get rich quick types would buy the wallpaper up. Not, 400,000 shares traded, a new all time low of a buck twenty-two, why is this thing going the wrong way, greed fuels Wall St? Doesn't this make the task of buying up all the stock easier and cheaper? Can I buy shares at Cheap Tickets?

**Mackie** · 08-18-2003 02:58 PM

I guess I should have read the speedvis thread first, I see now, they low-balled it, that is why the stock is in the toilet, some think CART and the owners will bite, thinking something is better then nothing, they may be right. I bet Walker would jump at it, if he has any shares left.

See, I usually ignore sv, you can't blanket ignore anyone, once in a while...

Will CART bite? They probably could get a better price on Ebay, the hardware, office equipment and rolling stock is worth more then that.

**debdrake** · 08-18-2003 03:31 PM

Will someone explain what is happening to the CART stock today

The sky is falling.

**Doc Austin** · 08-18-2003 03:36 PM

The rev can give us the direct quote, but the bible says something like: in the end of days that everything that is right will be wrong, and everything that will be wrong will be right.

I suppose it won't be long before we hear how great it is that cart stock is tanking and that is a good thing because it makes the buyout possible.

I guess we will be able to thank the cart supporters for Armagedon then.

Price of auto racing's soul at 4:42EST.......

Championship Auto Racing Teams, Inc. - NYSE
Last Trade 4:00 PM ET - Aug 18, 2003
Price $1.30
Change $0.53
Volume 450,100
Trades 270
Day Low $1.22
Day High $1.73
52 Week Low $1.40
52 Week High $5.35

In mexico they would call this the old El Tankola!!!

**silva2** · 08-18-2003 03:36 PM

You are correct in the idea that when a company is about to be taken private the stock rises on the news and when the offer is made is usually above the market price. Making the purchase of a stock in a similar position to Cart smart.

Well, everything you know about how a deal works can be thrown out the window at this point. This is just screwy.

Essentially Paul G. et al said today, "Hey, since your stock is trading at $2.00 how about you consider letting me buy it all for 50 cents a share?"

Sounds like a raw deal right? Well it is for the shareholders but not for the fans. If Cart fails at year end then what is the stock worth? Zero (well you firesale all the assets pay of debt and what's left over gets split by the shareholders).

Those that made the offer decided to work backwards. If the stock is only worth say 50 cents at the end of the season with little to no prospects of continuing then THAT'S what we will offer.

Ordinarily company's that are about to fail don't get taken private (who would want it, right?) but in this case someone thinking they can save it is willing to pay a small price (compared to the market capitalization) for it.

Should be interesting seeing how it works out.

**jjjanos** · 08-18-2003 04:08 PM

Originally posted by silva2 Sounds like a raw deal right? Well it is for the shareholders but not for the fans. If Cart fails at year end then what is the stock worth? Zero (well you firesale all the assets pay of debt and what's left over gets split by the shareholders).[/B]

One correction here. CART "fails" if it doesn't have enough money to complete the 2004 season. Most likely, they will have more than $7mn of shareholder equity - assets less liabilities - at the conclusion of the 2003 season. Most (all) of this will be cash. If they have any shareholder equity, the stock has value. If there's more than $7mn sitting in the bank, the stock price is greater than what the Gang of Four are offering.

This is a bad deal and if the BoD is to be ethical, they need to determine what the year-end shareholder equity will be. I'm not sure whether the venues with multi-year contracts can sue if CART liquidates.

If I was a street circuit promoter w/o a contract for next year, I'd be in serious discussions with Mr. Panoz about an IMSA race to replace the CART race.

**Jim Wilke** · 08-18-2003 04:48 PM

How about a TransAm race to replace CART? Anybody know who owns the TransAm series?

**silva2** · 08-18-2003 06:01 PM

jjjanos is correct. I probably wasn't very clear on that point.

That's why its a raw deal for investors (because as jjjanos pointed out there may be more than 50 cents per share of cash and marketable assets at the end of the year) and why it's a good deal for the fans (because without it the liquidation is sure to occur).

As management's duty is to protect the wealth of the shareholders they should be looking at the liquidation value and expect any potential purchaser to pay at least that.

Also, if these buyers get Cart for a song then they can just close up shop and split the cash (assuming it's more than $7mil).

**Truth Detector** · 08-18-2003 10:25 PM

silva, this is what I was saying should have been done back when Cart had $140MM in the bank. I will seriously be surprised if there are no shareholder lawsuits about the pizzing away of money in the last year or so.

**indyracer56** · 08-18-2003 10:59 PM

Originally posted by jjjanos
CART "fails" if it doesn't have enough money to complete the 2004 season.

Amazing how the failure "bar" keeps moving lower and lower.

**mac miller** · 08-19-2003 01:20 AM

[QUOTE][i]Originally posted by Mackie
"the hardware, office equipment and rolling stock is worth more then that."

My bet is that everything c>rt has is leased. I'd say that "4 bits" is a purty generous offer, considering the cash burn required to finish the season plus the cash required to settle pending and future lawsuits.
Somebody is going to have to pick up the tab for all of that before they even get back up to "zero".

**speedvis** · 08-19-2003 06:55 AM

Originally posted by Jim Wilke
How about a TransAm race to replace CART? Anybody know who owns the TransAm series?

I'm surprised you don't know. That's an easy one.

**indycool** · 08-19-2003 07:13 AM

....and the Trans-Am series was a participant in the street racing craze of the '80s and '90s at places like Dallas and Des Moines and St. Petersburg......

**Tara** · 08-19-2003 02:48 PM

Clue to Speedvis.......Jim knows.

**Jim Wilke** · 08-19-2003 03:05 PM

Yes, Jim does. I can already see Gentilozzi angling to run his series in the place of CART while they "work through the many options available to them."