Racing Stocks Mixed for the Week
Updated: Saturday, March 17, 2001 9:40 PM
Posted: Friday, March 16, 2001 4:52 PM
Last week's downturn in the stock markets produced mixed results for Thoroughbred industry-related stocks. Most companies with ties to racing followed the market downward, but a couple came out of the week ahead.
It was a gloomy week overall with the markets experiencing their roughest five-day period of the year. The Dow Jones Industrial Average fell almost 8% and dropped below the 10,000 mark to 9,823. The Nasdaq Composite dropped 7.4% to 1,909, and the S & P 500 Index fell 6.6%.
TrackPower (OTC.BB:TPWR.OB) took the biggest swat from the bear market's paw. The horse racing information technology company's stock fell 29% between March 9 and March 16. TrackPower's price fell from 17 cents per share to 12 cents per share. On Wednesday, the company reached a new 52-week low of 11 cents per share. Originally formed to create an interactive wagering and horse racing satellite service, the company is refocused on developing information kiosks for racetracks and off-track betting parlors. The kiosks are expected to provide video of live and archived races, handicapping information, and serve as automated teller machines (ATMs), according to the company.
Gemstar-TV Guide, the parent company to the TV Games Network, and Autotote, the country's largest totalizator company, also took double-digit losses. Gemstar-TV Guide's stock fell 19% to $35.50, down from $42.81 a week earlier. Autotote stock fell 12% by week's end, settling at $2.19 when the markets closed March 16. Autotote's 52-week range is $2 to $5.12.
The only companies that fared well were Anchor Gaming, which is the parent company to United Tote, and Youbet.com. Anchor Gaming road a roller coaster through the week but finally came out with a nearly 5% appreciation in stock value. Anchor (Nasdaq:SLOT) finished the week at $52.75, compared with March 9 when the stock was $50.30.
Though Youbet.com flirted with its 52-week low of 31 cents per share, it managed to finish the week stronger. The California-based Internet wagering company closed at 47 cents per share on March 16, up 14.6% for the week.
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