To say a 40%+ gain is an up day would be an understatement. Traders always look for new stocks that are moving, and this one is a real head scratcher. International Fight League (IFLI-OTC/NASDAQ) has everything the "microcap stock trader" would want: recent press, hype, adrenaline, men beating the tar out of each other, a hot product…….but what about a history?
International Fight League (IFLI-OTC/NASDAQ) has seen shares jump 40% this morning after a brief CNBC feature. The stock has been as low as $3.00 since its recent debut, but now shares sit over $12.00. Why? Well it seems that America loves watching big guys do bare knuckle martial arts fighting in cages is why. The exact term is Mixed Martial Arts (MMA) in team vs. team and man vs. man.
You can take a look at the chart from the company itself if you wish. Based on 34.1 million shares "indicated" you have an implied market cap in excess of $400 million. As a comparison World Wrestling Entertainment (WWE-NYSE) has a fairly long history, has a market cap of $1.19 Billion, and has a profitable history. "IFLI" was a shell company called Paligent prior to November 29, 2006, so you are on your own on determining the real balance sheet here.
IFLI was featured recently on 60 MINUTES, and then again on CNBC just this morning. The formula has been there before for high hype, big fad, cult stocks. So the question looks to be "Is the house of cards already weak, or can it be built higher before it crumbles?"
Jon C. Ogg
December 15, 2006
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