I’ve looked at the teasers ads for Jim Fink’s Roadrunner Stocks a few times over the couple years it’s been around, with middling results — he’s had one great pick, one that has gone down substantially, and a few “middling” picks that were in those teaser pitches. So is it worth trying out his latest idea?
Beats me. But it’s a compelling story, so it’s at least worth finding out what stock he’s talking about as being the “next Disney”.
Here’s the spiel that caught my attention, partly because I’ve had several of those “shoulda bought Disney (DIS)” moments over the years, including six months ago when we brought our little Gumshoes to Disney World (perhaps the most efficient money-hoovering operation on Earth as well as the “Happiest Place on Earth”):
“The Walt Disney Company is an epic stock market success story. Starting as cartoon maker in 1923, it’s now a $144 billion global entertainment and media enterprise with a vast array of TV, vacation, movie and music businesses. Mickey Mouse is as well known around the world as Coca-Cola.
“Just as Walt Disney built dreams for millions of children—and made the investors who followed him rich—this new stock I’ve discovered can power your own financial dreams.”
So that catches your eye, right? Here’s more:
“Since it opened Disney World in 1971, Disney stock is up a stunning 126 to 1. A mere $5,000 investment would now be worth an incredible $630,000.
“And now it’s happening all over again…
“A Florida-based company is in the second phase of an impressive plan to build the next generation of destination-based entertainment.
“The similarities to the Disney story are striking.
“Both companies were started by driven entrepreneurs who benefitted immensely from the success of their stock.
“Each CEO created products that appealed to young people at first, but which could eventually reach a wider audience. Their companies developed world-famous brand names and generated huge publicity.”
And no, they’re not teasing us about the reputation-clobbered SeaWorld (which is also a public company, ticker SEAS) or Merlin Entertainment’s Legoland (also public, MERL in London)… this is not quite so direct a comparison to the theme park world. Here are some clues about the company Fink is teasing:
“A new modern-day ‘Walt Disney World 2.0’ is going up in Daytona Beach, Florida, near the world’s most famous beach.
“Besides rides and shows, it includes 1.1 million square feet of world-class shopping, fine dining, hotel, theater and other entertainment just steps from the legendary Daytona International Speedway.
“It also has 2,500 movie theater seats, 660 hotel rooms and 1,350 residences.”
So that’s obviously a ridiculous comparison in terms of scale (Disney World has 30,000 hotel rooms on site and the Disney Orlando Empire covers some 43 square miles). But we can overlook it. How about some more clues?
“Massive Competitive Advantages—Our secret recommendation already operates 12 of the most popular entertainment venues in the United States, and has essentially created what Warren Buffett calls an economic moat. Its existing parks can handle more than one million visitors at a time. No one else in its industry comes close….
“Our pick enjoys lucrative marketing relationships with Bank of America, Coca-Cola, Coors Light, Ford, Goodyear, Nationwide Insurance, Sherwin Williams, Sprint, Toyota and UPS.”
OK, so that’s more than enough in the way of clues … but they keep piling it on, so in case you want some more of their pitch:
“This business is still owned and run by the family that founded it….
“Monopoly—The best type of business to own is a monopoly. Too bad they’re illegal. Of course, there is one huge exception: sports organizations….Are you getting our free Daily Update
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