There’s only one sports team in the entire world which is publicly traded on the NYSE, (New York Stock Exchange) or any stock exchange for that matter Manchester United Ltd. (ticker symbol MAN.U) fell very flat in its IPO last August, trading below the expected price. So does that mean you should buy in now?
The world’s most famous sports club is a multi-billion dollar brand, but acquiring these shares doesn’t even obtain voter rights for the stock purchaser.
And Manchester United stock does not pay any dividend either. However, it’s an actual stock you can trade, unlike those shares of the Green Bay Packers of the NFL; which are not for buying and selling in the marketplace. Manchester United stock is less ceremonial and more practical than Packers stock.
Manchester United sold 16.7 million shares as planned in it’s initial public offering, but at a price of $14 each, below the expected range of $16 to $20. One of the club’s top officials said that day that the team took less money than planned because it preferred the mix of investors involved at the lower price.
Yesterday MANU closed at $16.86 down .39 from the previous day. It’s year hi-low ranges from $12-$19.39. Remember there is no yield and the PE ratio is an alarmingly high 70! Yet MSN Money ranks it a “strong buy.” What makes that rating even odder is the fact that MSN gives Manchester United stock a 4/10 in it’s rating system. So it gets a below average score, yet rates a “strong buy?” That doesn’t make sense.
It’s also showing negative profit margin and sales growth. Investor’s Business Daily gives Manchester United stock a rating of just 36. And very few funds own the stock. And when they do it’s a rather small percentage. So as much as you love Manchester United the team, I would pass on Manchester United stock.
Paul M. Banks is the owner of The Sports Bank.net, an affiliate of Fox Sports. An analyst for 95.7 The Fan, he also writes on Chicago sports media for Chicago Now. President Obama follows him on Twitter (@paulmbanks)
