Comments/Ideas on sub $5 stocks

[lak]

Right about now is the time I wish I had a couple sub 5's in my deck. I do have LU, which I have had for a long time......... but the other guys in my investment group are eyeing some pharma stuff instead of small cap. I don't like it. But I got out voted! ha
Thanks for the help.

[grebnet]

look at EGY

I think this has great potential

[grebnet]

You might try PDEX

This is under 3

[jiesen]

looking for a short? SPEA.OB

http://finance.yahoo.com/q/bc?s=SPEA.OB&t=5y&l=on&z=m&q=l&c=

Though this isn't a sub-$5 stock anymore, it soon will be again. I put this at the top of my list of stocks to short if I had the guts. Check it out.

Elvis is leaving the building. Get your $20 while you can... free money!

[spikefader]

http://finance.yahoo.com/q/bc?s=SPEA...=on&z=m&q=l&c=

Though this isn't a sub-$5 stock anymore, it soon will be again. I put this at the top of my list of stocks to short if I had the guts. Check it out.

Elvis is leaving the building. Get your $20 while you can... free money!

Short it??!! lol you've got to be kidding!

I know it's had an outrageous run and looks like a bubble, but don't ignore the patterns. Charts don't lie!! This remains a bullish chart to me.

I actually remember the ticker from the recent past, and even did an intraday chart on it when it was at 11.00. Then stopped watching it. Searched the forum but can't find anything on it.

[jiesen]

SPEA.OB intrinsic value < $5

Short it??!! lol you've got to be kidding!

I know it's had an outrageous run and looks like a bubble, but don't ignore the patterns. Charts don't lie!! This remains a bullish chart to me.

I actually remember the ticker from the recent past, and even did an intraday chart on it when it was at 11.00. Then stopped watching it. Searched the forum but can't find anything on it.

Look to the SEC for all you need on it. The 30M shares just obtained by insiders represents 65% of the stock. They own $600M worth of stock for Elvis rights? Give me a break. The only reason this isn't a $2 stock is that they can't sell it for 18 months. Check back in September 2006 and tell me you'll pay $20 for an SPEA.OB share, I dare you! According to the latest PR:

On a combined and audited basis, the Presley businesses had total revenue of $44.4 million for the twelve months ended December 31, 2003, and $32.4 million for the nine months ended September 30, 2004. Operating income for those periods was $10.8 million and $7.3 million, respectively. Operating income for the respective periods includes depreciation and amortization expense of $1.2 million and $0.9 million, respectively.

But is that worth a billion dollar market cap? Come on...

Granted, the chart may say "screaming buy" or "short squeeze" right now, but in the end, the market is a weighing machine and this price will be corrected. It could take moving the stock past 30 or 40 (this is why I don't have the guts to short SPEA... though I don't think I have the means, either, as it would probably require a listing on the Berlin exchange to actually do it) to pop this bubble, but it will pop, and when these insiders finally get to dump their 30M shares on the market, it won't be pretty. Shoot, the company could issue 30M shares tomorrow if they wanted, nobody's stopping them...


Form 8-K for SPORTS ENTERTAINMENT ENTERPRISES INC 8-Feb-2005

Other Events, Financial Statements and Exhibits


Item 8.01 Other Events. This report contains forward-looking statements, which are subject to inherent uncertainties which are difficult to predict, and may be beyond the ability of the Company to control.

Certain statements in this Current Report on Form 8-K (this "Form 8-K") constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are not historical facts but rather reflect the Company's current expectations concerning future results and events. The words "believes," "expects," "intends," "plans," "anticipates," "hopes," "likely," "will," and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company (or entities in which the Company has interests), or industry results, to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's view only as of the date of this Form 8-K. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstance after the date hereof or to reflect the occurrence of unanticipated events, conditions or circumstances.



General

Unless the context otherwise requires, the term "we," "us," "our" or "the Company" when used in this Form 8-K refers to Sports Entertainment Enterprises, Inc. and its consolidated subsidiaries and predecessors.

Since August 2002, when the Company disposed of the last of its financial and operating assets, the Company has been inactive. On February 7, 2005, the Company consummated the transactions contemplated by the previously announced definitive agreements pursuant to which RFX Acquisition LLC ("RFX Acquisition"), an entity formed and controlled by Robert F.X. Sillerman, acquired a controlling interest in the Company simultaneous with the Company's acquisition of a controlling interest in entities which control the commercial utilization of the name, image and likeness of Elvis Presley, the operation of Graceland and related attractions, as well as revenue derived from Elvis' music, films and television specials. The Company financed the transactions with a contribution of equity by the members of RFX Acquisition, the issuance of preferred and common stock to the Trust (as defined), the purchase of preferred stock, common stock and warrants by The Huff Alternative Fund, L.P. and certain of its affiliates ("Huff") and a short-term senior credit facility from an affiliate of Bear, Stearns & Co. Inc.

The Company has filed a certificate in Colorado to conduct, and is presently conducting, business under the name "CKX" and intends to seek shareholder approval to officially change the name of the Company to CKX, Inc. at its next meeting of shareholders.

For the purposes of this Form 8-K, the acquisition of control of the Company by RFX Acquisition is hereafter referred to as the RFX Investment. The acquisition of a controlling interest in the entities which control the Presley assets and business activities is hereafter referred to as the Presley Acquisition, and, together with the RFX Investment, is hereafter referred to as the Acquisition Transactions. The investment by Huff is hereafter referred to as the Huff Investment. The short term senior loan from the affiliate of Bear, Stearns & Co. Inc. is hereafter referred to as the Short Term Senior Loan. The Acquisition Transactions, the Huff Investment and the Short Term Senior Loan are hereafter collectively referred to as the Simultaneously Closed Transactions. Each of the Simultaneously Closed Transactions was arranged for the Company by RFX Acquisition. The assets and business activities acquired in the Presley Acquisition are hereafter referred to as the Presley Business. The Simultaneously Closed Transactions and the Presley Business are described in more detail below.

The Company's business plan is to make selective and strategic acquisitions of or partner with individuals or companies that control various forms of established or developable content and thereafter to improve and enhance the development and marketing of such content. Simultaneously, the Company will seek to capitalize on the increasing distribution opportunities that make it easier and less costly to deliver content to consumers and which enable consumers to selectively decide how, when and where they will consume content. The Presley Acquisition is the first acquisition in the Company's plan to acquire, control, develop and build content in various forms of media. Though the Presley Business currently constitutes all of the active business conducted by the Company, if the Company successfully accomplishes its plan of strategic acquisitions, the Presley Business will constitute only a part of the overall business of the Company.

The Company believes that its experience and its infrastructure with respect to the utilization of the name, image and likeness of Elvis Presley provide a strong base upon which to expand its business into other celebrity brands. The Company is presently exploring various methods of expanding this



business which might include purchasing additional name and likeness rights or entering into agreements for the management of name and likeness rights.

Mr. Sillerman was the founder and controlling shareholder of a number of publicly traded media and entertainment companies including SFX Entertainment, Inc., which was the world's largest diversified promoter, producer and presenter of live entertainment events and SFX Broadcasting Inc., which was a major owner of radio stations. Essentially all of the members of senior corporate management of SFX Broadcasting and SFX Entertainment, including Howard J. Tytel, Mitchell J. Slater, Michael G. Ferrel, D. Geoffrey Armstrong and Thomas P. Benson, have joined Mr. Sillerman in this venture in various executive and/or consulting capacities. During the term of Mr. Sillerman's employment with the Company, he will conduct all of his media and entertainment activities through the Company, other than certain passive investments and certain delineated pre-existing investments.

The RFX Investment

The RFX Investment was effected pursuant to a Stock Purchase Agreement dated as of December 15, 2004 and amended as of February 7, 2005. In accordance with the terms of the Stock Purchase Agreement, RFX Acquisition contributed $3,046,407 in cash to the Company in exchange for 30,464,072 newly issued shares of the Company's common stock, no par value per share (the "Common Stock"). In addition to the shares purchased directly from the Company, RFX Acquisition received warrants to purchase (i) 6,828,938 shares of Common Stock at $1.00 per share,
(ii) 6,828,938 shares of Common Stock at $1.50 per share, and (iii) 6,828,939 shares of Common Stock at $2.00 per share. The warrants are exercisable for a period of two years following closing of the RFX Investment. Simultaneously with this exchange, RFX Acquisition also acquired an aggregate of 2,240,397 shares of Common Stock directly from certain principal shareholders of the Company at a price of $0.10 per share. The amendment to the original purchase agreement provided for a reduction in the number of shares of Common Stock and warrants RFX Acquisition had originally agreed to acquire in order to allow for the Huff Investment and the issuance of shares of Common Stock to our new directors (as described below under "Director Compensation"), without further dilution to the public shareholders of the Company. Immediately following the consummation of the RFX Investment, RFX Acquisition distributed its shares of Common Stock and its warrants to its members, including Mr. Sillerman and certain members of the Company's senior management. In order to provide additional capital to the Company, certain recipients of the warrants, including Mr. Sillerman and other members of the Company's senior management, immediately exercised an aggregate of five million of the $1.00 warrants for aggregate consideration to the Company of $5,000,000. After giving effect to the consummation of the Simultaneously Closed Transactions, the subsequent distribution by RFX Acquisition of its shares of Common Stock and warrants and the immediate exercise of certain warrants, Mr. Sillerman and other members of the Company's senior management beneficially own an aggregate of approximately 65% of the outstanding Common Stock on a primary basis.

Lock Up

In connection with the Presley Acquisition, RFX Acquisition and its members have agreed not to dispose of or otherwise transfer any shares of Common Stock until one year from the date of issuance and not to dispose of or otherwise transfer more than 20% in the aggregate of any such securities prior to the 18 month anniversary of the date of issuance.



The Presley Acquisition

The Contribution and Exchange Agreement

The Presley Acquisition was effected pursuant to a Contribution and Exchange Agreement dated December 15, 2004 by and among the Company, The Promenade Trust, a Tennessee grantor trust (the "Trust") and RFX Acquisition. The Trust has historically directly owned and operated the assets and businesses of Elvis Presley which existed at the time of his death and has owned and operated the businesses and assets acquired and/or created after Elvis' death through its ownership of 100% of Elvis Presley Enterprises, Inc. ("EPE Inc."). Prior to consummation of the Presley Acquisition, the Trust contributed the Presley assets and businesses not owned by EPE Inc. to a newly formed Tennessee limited liability company, Elvis Presley Enterprises, LLC ("EPE LLC").

At the closing of the Presley Acquisition, the Trust contributed 85% of the outstanding equity interests of EPE Inc. and 85% of the membership interests of EPE LLC to the Company. In exchange, the Trust received from the Company $50,125,000 in cash, 1,491,817 shares of Series B Convertible Preferred Stock, no par value per share (the "Series B Preferred Stock") and one share of Series C Convertible Preferred Stock, no par value per share (the "Series C Preferred Stock") valued at $22,825,000, and 500,000 shares of Common Stock valued at $7.67 per share (which represents the three day average of the Company's closing stock price following public announcement of the transaction). In addition, at closing, the Company repaid $25,125,000 of outstanding indebtedness of the Presley Business. The Trust continues to own 15% of the outstanding equity interests of EPE Inc. and 15% of the membership interests of EPE LLC.

Lisa Marie Presley, who is the sole beneficiary of the Trust, will remain involved in the Presley Business through the Trust's continued ownership interest in each of EPE Inc. and EPE LLC, the Trust's right as the holder of the Series C Preferred Stock to elect a director (as described below), and Ms. Presley's long-term employment agreement with EPE Inc. At the closing, the Company entered into long-term employment agreements with Jack Soden and Gary Hovey, key members of EPE Inc. management, pursuant to which Messrs. Soden and Hovey will continue to oversee the day-to-day operations of the Presley Business. At closing, Priscilla Presley entered into a consulting agreement with EPE Inc. for a period of ten years under which she will be paid $560,000 per year. It is anticipated that on February 8, 2005, Ms. Presley will be elected by the holder of the Series C Preferred Stock to serve on the Company's Board of Directors.

The EPE LLC Operating Agreement and the EPE Inc. Shareholders Agreement

The respective rights of the parties with respect to their ownership interests in EPE Inc. and EPE LLC are governed by the terms of the EPE Inc. charter and Shareholders Agreement, dated as of February 7, 2005 and the EPE LLC Amended and Restated Operating Agreement dated February 7, 2005. Under the terms of such documents, EPE Holding Corporation, a newly formed, wholly owned subsidiary of the Company, is appointed as manager and lead shareholder, with all rights of management over the day-to-day operations of the Presley Business.

The Trust is entitled to certain preferred minimum distributions of certain cash flow from the Presley Business. The Trust also has the right to require the Company to purchase all or a portion of its remaining ownership interest in the Presley Business beginning on the third anniversary of the Presley Acquisition at a price based on the then current fair market value of the Presley Business.



The Graceland Lease

The Company has entered into a 90 year lease with the Trust for the Graceland mansion, under which the Company has the exclusive right to conduct all business operations of and at Graceland, including receipt of all revenue generated in connection with such operations. The Company prepaid approximately $3.0 million of rent at closing of the Presley Acquisition, and will make monthly payments of $1.00 per month during the term of the lease. Under the terms of the lease, the Company is responsible for all costs and expenses arising from or related to the operation of Graceland. The Company has also acquired all worldwide rights, title and interest in and to the name "Graceland," which name may be used at additional themed locations as well as in Memphis, Tennessee.

. . .

[jiesen]

and consider this:

In 2003 the Elvis business made $10M profit. In 2004 it made $7M as far as we know, and possibly a total of $10M.

Already in 2005 they have incurred a $5M liability by hiring Lisa Marie Presley for 10 years as a consultant. Do you think they'll be getting $5M worth of consulting out of her? I don't know, but it'll take a lot more than her good judgement to turn a business making $10M into something worth a billion.

What's next? Hiring Michael Jackson for $20M to make the next Graceland? Or Dolly Parton for $50M?

I'll be looking for news from this company for my "sports entertainment" for this year... I'm sure they'll be good for a laugh or two.

[spikefader]

Let's follow this one in the weeks/months ahead and 'chart' it! It will hopefully teach us a lesson or two.

It's an interesting fundy situation, and you have highlighted clear reasons to 'want' to favor the short side. But it's the same old story; a trend is a trend until it isn't. A bubble too-often becomes a bubble because people don't expect it's going to happen. When the bubble bursts, i.e. a broken chart, or at an exhaustion 5th wave completion, or a significant upper channel hit that will lead to profit-taking are the times to look at shorting it. None of these three have happened yet. Although I can't help but note the bearish daily candle yesterday. This could be a precursor to something, but it's not there yet.

And remember, what we know about it today may change in the near future. News can surprise and later explain why a stock did what it did. Charts don't lie, and I don't think this one is today. Naturally the usual disclaimer applies but it's got a bullish bias imho.

[jiesen]

Let's follow this one in the weeks/months ahead and 'chart' it! It will hopefully teach us a lesson or two.

Sounds like a great idea to me! And you're right, anything can happen...

But my bet would be that we see SPEA at 5 before we see it at 25.

[mtm]

Almi

Hope I am in the right place?

Not much to say because I am not much of a penny player, but I know this will catch someones eye. Ascending formation breakout on heavy volume.

[jiesen]

almi

damn, mtm, that was (is?) a good pick!

http://finance.yahoo.com/q/bc?s=ALMI.OB&t=5d

[jiesen]

Let's follow this one in the weeks/months ahead and 'chart' it! It will hopefully teach us a lesson or two.

It's an interesting fundy situation, and you have highlighted clear reasons to 'want' to favor the short side. But it's the same old story; a trend is a trend until it isn't. A bubble too-often becomes a bubble because people don't expect it's going to happen. When the bubble bursts, i.e. a broken chart, or at an exhaustion 5th wave completion, or a significant upper channel hit that will lead to profit-taking are the times to look at shorting it. None of these three have happened yet. Although I can't help but note the bearish daily candle yesterday. This could be a precursor to something, but it's not there yet.

And remember, what we know about it today may change in the near future. News can surprise and later explain why a stock did what it did. Charts don't lie, and I don't think this one is today. Naturally the usual disclaimer applies but it's got a bullish bias imho.

So does SPEA's chart still say bull to you? I'm thinking today's action might have reversed some of the technical indicators to more closely represent reality.

[mrmarket]

Looks like my little HCAR is starting to move. It's near its 52 week high and has a PE of only 2.68 and is trading under book value. I think it's kind of hard to miss here as an eventual rollup or buyout would certainly be at a higher price.

[lak]

Glad that this thread has been a success! I have been out of town on business so much that I haven't been logged in for a long time! Glad to be back and start sharing in the info gathering and start using some tips! Thanks all and good luck out there!