2013 Is Time For Fun

Brazil’s Time 4 Fun Entertainment saw a recent stock plunge but analysts think it might be a buying opporunity.

T4F traded at 10.8 times estimated 2013 earnings as of Dec. 21, a figure more typical for slow-growing, mature companies. That makes T4F the cheapest of all global promotion companies by that measure, including Germany’s DEAG and South Korea’s SM Entertainment.

All six analysts who rate the company have given it the equivalent of a “buy.”

The stock plunged 58 percent in September.

At the time, billionaire Eike Batista’s entertainment company, IMX lured Cirque du Soleil away from longtime promoter T4F. IMX is a new alliance between Batista’s EBX Group Co. and IMG Worldwide.

T4F also had poor results from shows by Madonna and Lady Gaga, according to Bloomberg.  Lady Gaga’s show in November was expected to draw up to 90,000 with tickets priced as much as $410, but T4F reportedly wound up doing two-for-one ticket promotions a week before show time.

Demand for live shows is expected to rise in Brazil, the world’s second-largest emerging economy, according to analyst Bruno Piacentini.

“It’s definitely worth more,” Piacentini told Bloomberg. “The market move was due to one-time events rather than the company losing value.”