Manchester United (NYSE:MANU)

CAPS Rating: 1 out of 5


Player Avatar StrydeGum (69.56) Submitted: 4/4/2013 9:23:42 AM : Underperform Start Price: $18.67 MANU Score: +51.63

Popularity only counts in high school, not in the business world.

Report this Post 2 Replies
Member Avatar OklaBoston (68.01) Submitted: 7/5/2013 5:24:04 PM
Recs: 1

It can't be ignored either.

How do you value something like this? As a newly public stock it's bound to become very overpriced for a few months. That's just the way the IPO market works. Said market is not noted for rationality to put it politely.

Member Avatar StrydeGum (69.56) Submitted: 7/17/2013 10:43:03 AM
Recs: 1

I don't even look at valuation for something like this. Its an IPO valuation is really difficult right now.

You have to think about how they make their money. Sports fans. That means that MANU has to keep excitement for the fans to stay in business (popularity). NOW they have to worry about shareholders, ensuring that their business is growing, income is maintained, and capital is allocated accordingly. On top of all this they have to manage sponsorship, broadcasts, media, licensing, patents, and merchandising. All of which are vital to this business.

I know that this is nothing new to them, but why go public? You main attraction was that you were special to the fans, now you have to worry about all these other people(shareholders). I don't see the logic and i don't see it growing much more than what it has in the past 100+ years.

Featured Broker Partners