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$0.00 0.00 (-12.50%)
12/4/2008 2:22 PM

International Fight League, Inc. (IFLI.OB)

CAPS Rating:
*

The Company is world's first professional mixed martial arts sports league.

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Avatar TMFMattyA (94.52) Submitted: 2/23/07 9:38 AM : Underperform Start Price: $12.10 IFLI.OB Score: 58.53

While martial arts and physical combat tournaments and competitions might be gaining popularity (i.e. UFC, ESPN Kickboxing), the financials for this hollow entity are completely out of whack. The company has a market cap of nearly half a billion, but has barely any revenues to speak of and may ultimately fail to gain any lucrative TV deals, which are vital to the survival of the company. Meanwhile, it is issuing stock at a prodigious rate, while not generating any meaningful cash flow. I expect some short-term volatility, but this stock is a no-brainer to underperform in the long-run.

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Avatar BrianRuth (99.73) Submitted: 4/06/07 10:04 AM

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The ratings just came out for its first few broadcasts: http://www.mmaweekly.com/absolutenm/templates/dailynews.asp?articleid=3691&zoneid=3

The ratings seem to be okay considering it's on MyNetworkTV (you haven't heard of it? exactly). It seems to be getting close to a 1.0 rating. By comparison, WWE Smackdown on CW gets about 2.7 or so.

Despite some cosmetic differences, I think it's fair to compare WWE and IFL, since they are both geared at a young male audience.

If you just look at those ratings alone, it ALMOST seems to be valued correctly (IFL is about 500 million, WWE is ~1.14 Billion). Problem is, WWE has a multitude of different ways of generating revenue that IFL doesn't have yet. WWE has quite a bit of merchandise, a developed talent roster, a fairly long history (and DVDs it can sell recounting that history), Pay-Per-View events, video games, and comprehensive deals with a multitude of networks (broadcast and cable).

All IFL seems to have is a unique concept (team-based Mixed Martial Arts). I don't think that alone is enough to compete with the multitude of things competing for the attention of young males. It also seems to have more viable and established competition (UFC/Pride FC).

If you contend that WWE is fairly valued at 1.15 Billion, I don't see any way to justify IFL being worth almost half that.

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Avatar oulous (97.19) Submitted: 4/26/07 1:10 PM

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The problem here is behavior. I would stay away from this stock on the short side.
Take a look at level II and you will see there isnt a lot of order in the stock right now.

There is very little supply before the market makers are forcing it to jump significantly higher.

Right now UFC is on par to upstage boxing and its going to be grabbing a lot of headlines. IFL actually has some support from fox. They have been showing matches on fax and fox has pledged support to their archives. Their next tournament is being moved from reno to vegas which is a big upswing.

So forget fundamental analysis in stocks like this. This is rome, the circus maximus and the crowd will lust for profit like they did death. They will drive this one up. It has also come back down so a lot of people sold out for a loss and are gone. I see the upside risk to a short as high right now.

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