Tracking Guru Robert Sillerman At His Latest Venture, Viggle Inc (NASDAQ:VGGL)
Robert F. X. Sillerman, an entrepreneur who has founded companies worth over $6 billion to date, is at work again as CEO of Viggle Inc. (VGGL). With a personal net worth of approximately $1 billion, Sillerman was an early investor in American Idol, Elvis Presley's estate, Muhammad Ali Enterprises, and is majority shareholder of some of the world's largest entertainment events including TomorrowLand, TomorrowWorld, Sensation, Stereosonic and Electric Zoo.
Beyond his $6 billion in career exits, two stock market events are worth noting for GuruFocus readers, who are presumably interested in how Sillerman has rewarded his public (not just private) shareholders. "Guru followers" might consider that Sillerman was responsible for a 9,000% rally of Sports Entertainment Enterprises (SPEA) in 2004 and a 30,000% rally of Gateway Industries (GWAY) in 2011. (Sillerman remains Chairman at Gateway Industries, which is now SFX Entertainment Inc (SFXE).)
"Nothing like a 30,000% gain to brighten up your day," commented Forbes shortly after Gateway Industries had rallied from $0.01 to $2.97 per share on Tuesday, February 8, 2011. Yes, within one day, and with volume of approximately two million shares.
Sillerman made his early fortune selling TV and radio stations in the 1980s and '90s. He landed a $400 million buyout from Westinghouse in 1989. Next, he combined multiple concert promoters into a single company, which he sold to Clear Channel and which later morphed into Live Nation, a household name. In 2005, Forbes named Sillerman the 375th richest American, with a net worth of $975 million. During the past decade, Sillerman has made a fortune in the Electronic Dance Music ("EDM") revolution, quoting to the New York Times that his companies intended to spend up to $1 billion on EDM acquisitions like clubs, festivals,
I'm not familiar with these guys but the article is very well written, and this is very interesting--knew he was successsful, but nothing like this.
Very true. For the entire month of March, it traded in the 1.30-1.70 range. So in essence, the new "floor" has moved up over a dollar. And you figure if the big boys are willing to pay $2.50 for all these shares, it's obviously worth a lot more as they wouldn't have funded the offering at that price if they didn't think they were getting a great deal.
Now at HOD, just an hour later than the last 2 days (this could bode well). Hopefully today is the day we can break through that 10.83-10.85 area where it stalled each of the last two days.
Why do you call it hype? Management simply gave a positive update this morning--what is wrong with that? I would much prefer occassional updates than getting no news at all. Also, don't they have a fiduciary responsibility to keep stockholders updated with any developments, progress, etc. (could face lawsuits if they don't give key updates).
Agreed. Most shorts will not want to hold for a 3 day weekend, which really becomes a 3 1/2 day weekend as a lot of people cut out from work early on Friday. Too much time to elapse where news could come out before Tuesday. And the shorts know that anything makes this thing fly.
Look at that 5-day chart---there is a lot more volume on the two spikes the last couple days than there was on the profit-taking (probably just retail folks).
It's just predicitable for the traders. It usually always opens up, and so they short it at it's high of the day (two days in a row it hit nearly the same price--10.83 and 10.85). Now it's actually heading back up, as they know it'll open up in the morning. (it was 9.12 about 10 minutes ago, now up to 9.30). So tomorrow there will probably be some resistance in that 10.83-10,85 area again before it can break through. Just be patient, and you'll be fine.
But these folks would still need to cover eventually even if illegal shares, correct? So the short-term pain will eventually be long-term gain. Still surprised though---you would think the shorts could find other stocks with better opportunities (more room to drop).
Yes, I have been assuming for the last couple days that is just filling that gap. It'll bounce nicely in a day or two--nearly there now. Remember this thing was 5.70 in the AH just a few (trading) days ago--a 50% haircut on a secondary seems a bit much.
You obviously didn't see the news this morning. You can't go by what it did in the past. That would be like saying "don't pick the Cavs, they don't ever win the title". Now with Lebron everything different. Same thing here---holding mid-10's quite well with this consolidation, and I expect another leg up today as well.
In the short-term (as in today) it should challenge the recent 11.15 high (it already took out yesterday's high, so today hit the 2nd highest intraday price of all time). And long-term, this thing has unlimited potential (obviously).
But if I am mistaken, please let me know. Despite the profit-taking in the afternoon, it's still put $2 in the last 2 days. Needed a little breather late this afternoon, which should bode well for the rest of the week. I think the 15.1 million shares traded may be the 4th highest of all-time. All good stuff.
Doesn't make sense---during the week of April 13th-April 17th, it was around $8 for the entire week. This is not a $5.70 stock people---I'm sure it'll be back to $8 soon, but this is a bit annoying.
But the volume should be no worse than the 3rd highest volume day ever. To a tremendous technical breakout today.
Our firm hearing some rumors too but haven't been able to confirm anything as of yet. However, in general I have found on these big volume days where there is smoke there is usually fire. Doubled up our position once it got through $10.30.
Thanks, I'm in it for the long haul myself. Would be silly to sell now. Was just curious if anything specific caused today's selloff. Guessing there is not, maybe just a technical thing after the 3.50 level was breached yesterday.