‘Idol’ Advice: Short Sillerman
Oh, how the world will be watching tonight as ABC reveals its crushing exposé about “American Idol” – expected to feature the alleged peccadillo between
But are Abdul and the Fox network the big losers in this? According to the Motley Fool, the answer is no. The maverick financial adviser thinks it’s Robert Sillerman’s CKX that had better hold onto its hat.
Sillerman – the man behind the roll-up of promotion companies, aka SFX – has returned from a golfing retirement. He took a publicly traded sports company and changed it into CKX, which is gearing up for a second public offering, and has bought most things Elvis (including the management of Graceland) and recently purchased Simon Fuller’s
The downside is that May is the month for sweeps ratings and ABC’s “Primetime Live” is promising an hour-long, no-holds-barred look at a sinister side of the show. But don’t cry for Fox, the network that airs “American Idol.”
“Pity instead a company that you have probably never heard of – CKX,” the Fool advised.
Sillerman’s company will close its deal with 19 Entertainment at about the same time the exposé airs, and 19’s income includes a portion of the cash made off of the phone-in voting – just a slice of the revenue it gets from “Idol.”
“‘Idol’ has had its share of controversies in the past and has managed to rise above them every time, but you may want to start up some due diligence on CKX, as either a long or a short, because there’s a pretty fair chance that the stock will be volatile in the coming weeks,” the Fool said.
For those not versed in “shorting” a stock, let’s just say the Fool thinks it’s a good idea to bet against the dealer for the next couple of hands, or put your money on the “Don’t Pass” bar. And if the gambling references don’t work for you, you’re on your own.