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Nick Sleep

International Speedway
NASDAQ:ISCA
2002-Unknown
Industry: NASCAR Tracks
Category: Pickaxes and Shovels

Context
12 motor racing circuits, 20 of 30 NASCAR races are held at International Speedway tracks
10% of NASCAR sales goes to the founder, 65% to the track, 25% to the prizepool

Why the Company is Mispriced
Cash flow growth will subside in the near-term, the stock will have little excitment for the short-term professionals

Alternative View
Effectively, value is correlated to NASCAR success
Is currently trading at a small premium to replacement cost
market is discounting only growth of just 3-4%
Given NASCAR imminent significant growth in relation to TV deal demand, Sleep believed it to be undervalued

Result
2002 Share Price: $40/sh
Exit price and date is unknown, share price held between $40-60 over next 5 years
Return: Assuming a 25% total return over 2.5 years, estimating a 10% CAGR

Notably
3.7% of portfolio
NOTE: Unsure why this was not as successful as analyzed, will review in time