the brillance of Gerald

rush1 · 19 Sep 2002, 03:52 (Ref:383858)

In this era of corporate crooks at companies like Tyco and Worldcom, it is nice to see some of the big boys take it on the chin once and a while. So it is with one Gerald Forsyth.

As the owners of Championship Auto Racing Teams (CART) have divested themselves of their MPH stock over the last year, Mr. Forsyth has been buying the stock, a great deal of it. Documents filed with the SEC (this is public information) show Mr. forsyth acquiring 262,400 shares of MPH at 14$ on 11/30/01 another purchase of 5,300 shares at $16 on 1/08/01 and another purchase of 217,500 shares at $8 on 7/09/02.

On September 18, 2002 MPH closed at $3.97 per share. Gerald is currently down over $3.5 million dollars. No wonder he wants to field 4 cars next year.

macdaddy · 19 Sep 2002, 06:29 (Ref:383882)

Pardon? Sorry... I wasn't listening.

I misread the title of this thread, thinking it was "The Brilliance of Trolls". I don't know why I'm responding, really. I've promised myself to avoid this guy's threads. But I'll give it a go anyway. Because he's right this time. Gerald Forsythe, (with an "e"), really is an idiot. When he stumbled across that fortune in the power generating industry, it was completely by accident. He just walked into the boardroom to ask directions to the amusement park, and the rest is history. He's only running a race team now because it's the only job his social worker could find for him. The fact that he finds himself as the wealthiest owner in the paddock is quite the irony, really. Especially considering that the man can't even tie his shoes, much less put them on the right feet. Oh yes, Forsythe is an idiot alright. He has no idea what he's doing and never thinks about the future.

f1manoz · 19 Sep 2002, 07:37 (Ref:383913)

Rush1,

Do us all a favour and feck off will you.

We don't need your sort around here.

tanalised · 19 Sep 2002, 07:50 (Ref:383924)

Rush1 have you posted any positive threads or posts yet? (on any forum?)

The Snout · 19 Sep 2002, 08:01 (Ref:383937)

Should really leave Rush1 alone, he's just over here in the Cart forum cause there's no one over in the IRL side, a bit like it's events. Remember the guy at school that was a hanger-on in the group cause he didn't have any friends of his own. We'll that's Rush1, but give it time, he'll get laid one day (without paying for it for once) and will finally follow Andretti's lead and leave us for good. Feel free to wave everyone, bye Rush1...

Liz · 19 Sep 2002, 11:19 (Ref:384044)

I agree with The Snout; and I hope you're not Tony Kanaan in disguise.

Don't even talk to Rush1 and he will go away. If he ever decides to post something positive about Champ Cars, he will be welcome. (Or, as has been pointed out, something that may point out problems but seek for solutions will do.)

Mark Twain said once that the problem with "tainted money" is that "t'ain't yours and t'ain't mine."

Joey Jo Jo · 19 Sep 2002, 14:48 (Ref:384180)

Mac, how do you know this about Gerry? I do admit that it looks bad but mabye he has somthing up his sleeve. I heard he wants to buy all cart stock and run it as a privte company again. And how does someone so stupid make ungodly amounts of money?

pferrf1 · 19 Sep 2002, 14:48 (Ref:384181)

Only Rush1 can't see the brilliance of Forsythe's moves. As the owner of 23% of the company now, he is in the catbird's seat. AS CART moves forward and gains back value, he has purchased a large portion of his holdings at bargain parices. With his influential holding, he can have greater control in company direction. If the thing goes private, he knows he will own AT LEAST 23% of it. If CARt does not succeed in carrying on, since they are debt free, the shareholders are first in line to the assets and he would get 23% of the cash - roughly worth $23M right now.

Also, don't forget, I don't believe all the owners paid for their stock at the timew of going public. They were issued their holdings as owners of CART. Even if CARt tanked, Gerry would make money.....Brilliance indeed.

Barbarosa · 19 Sep 2002, 15:39 (Ref:384218)

He's right. And it is pretty clear that CART is not going to tank. Especially with TG being so stupid as to invite Toyota and Honda to continue their fued in IRL. Thing to remember folks is that IRL does need an awful lot of cars to function. Almost twice that of CART, who can get away with F1 levels of 18 cars on a grid. You don't have 30-50 IRL cars for a race, you don't have Pole Day. Maybe Pole Half Day, but not Pole Day. And you don't have bump day either, cause if you have less than the max in cars for the 500, why the hell would you need a day to trim the grid down. And the 500 suddenly looks mighty thin about the 3-400 mile mark.

So all those small teams that TG and IRL depend upon to make them work, they are going to be mighty upset when those engine prices double, as they will, cause both Toyota and Honda are going to dump all their research into making them better just to go after the other guy. Chevy will have to pour more money in, and that quarter million dollar engine (remember, CART is leasing Cosworths to teams at a $100 grand an engine next year) that Chevy is so proud of and those small teams are buying suddenly cost half a million a pop just so that they can keep up with the Japanese.

Small teams can't afford to be spending that kind of money for long, and they will have to bail for less expensive pastures... such as CART, where they can afford to race... Remember, Toyota wants something like 1.2 mil per engine next year. So, don't worry about CART or the sanity or business accumen of Mr. Forsythe. Assuming CART survives next season, which is looks like it is going to, they will be around for a long time, and Forsythe will be laughing all the way to the bank.

Barbarosa

Liz · 19 Sep 2002, 16:27 (Ref:384234)

Excellent summaries, guys.

And may I suggest that when the little teams start making overtures to CART, that we overwhelm them with kindness and welcoming words? Any of them that have websites, for example, should get messages from Champ Car people encouraging them to come over. Maybe even send them a copy of the demographic study just so they'll be encouraged. (The owners see this I am sure, but not the drivers).

Flatspot · 19 Sep 2002, 16:29 (Ref:384235)

Hey Rush I gotta hand it to you here. I recall that you're a day trader and day trader's are paid to be short sighted so you are obviously very good at what you do (although I'd love to see your tax return).

MacDaddy's right! What a fool Mr. Forsythe is! I just don't understand what he could possibly be thinking, getting in on the ground floor then aquiring large quantities of stock along the way and buying even larger quantities as the price get more and more attractive while averageing his costs down. Dumber yet, he's aquired interests in tracks that on have attendance figures in six digits with multi-year contracts. How could he possibly be so ignorant as to look at things like return on investment based on the big picture when the the small picture is so devastating. Next thing you know he'll do something as stupid as aquiring a majority interest (at bargain basement prices) in the company and going private again. Can you imagine being such an idiot?

All sarcasm aside, Rush even you must understand the theory of risk vs. reward. Gerry Forsythe's got both money and large kahunas. He is taking a big risk but his potential gains are enourmous. May he live long and prosper!

gaines · 19 Sep 2002, 16:56 (Ref:384261)

Why don't we all join up and buy some CART stock? It's cheap enough right now and why shouldn't the CartRock gang own a few shares? Then we can brag about being owners while in the paddock areas. I'm pretty sure between all of us combined that at least one of us makes it to every race of the season. I'd be like, "HEY PT, AS OWNER OF THE SERIES I COMMAND THAT YOU LET ME DRIVE YOUR CAR! KOOL AND THAT EYEBROW EXPERIMENT ANDRETTI ARE LEAVING THE SERIES ANYWAY, WHO CARES IF I WRECK IT?! AND GIVE ME YOUR AUTOGRAPH...IT'S FOR MY SON...UM REALLY."

Liz · 19 Sep 2002, 17:15 (Ref:384277)

Can we do that? I mean, own a block of stock in common? (I know nothing about stock except the kind you use to make soup.)

paul-collins · 19 Sep 2002, 18:29 (Ref:384304)

Anyone can own stock. You just need to open an account with a trader and have them buy the stock you want.

If a group were to do this, you'd want to have rules about that partnership drawn up (how losses and gains are split, how to deal with a person who wants out or in, how to end the partnership, how to split costs of setup and maintenance).

Since this group would have the express purpose of buying MPH stock, I'd guess that everyone buys in with shares (or money equivalent) and the overhead costs would be covered on a proportional basis - ie transaction costs, management costs, any legal fees. Latecomers could buy into the partnership on a share for share basis.

The benefit of this partnership would primarily be prestige (plus only having to pay the trading transaction fee for the whole lump, and whatever the stock gains over the long haul).

Liz · 19 Sep 2002, 20:53 (Ref:384394)

I wouldn't mind getting in on this, but I'm not going to run it. Doing the Fantasy Grid is about as much arithmetic as I can manage.

Joey Jo Jo · 19 Sep 2002, 20:54 (Ref:384395)

My friend showed me one day a framed paper stating he was an offical owner of the Green Bay Packers. After that I bought some CART stock and I get some neat information in the mail every so often like the salaries of the board members. But othe than that I don't look at the price or I might get discouraged

Barbarosa · 19 Sep 2002, 23:26 (Ref:384486)

Hell, I'm an official owner of Road America! Buying some stock in the track's biggest race would be a hoot.

Though, I've seen how big most of the drivers are in CART. And squeezed (I had to stop breathing for twenty minutes to get out again) into my father's F1 at the last BRIC. So, I'm not too keen on trying to squeeze into a Champ car knowing that I'm at least a good three inches taller than the tallest Champ Car driver I've ever met. But hey, as a CART owner, maybe I can get them to build a new tub!

Barbarosa

macdaddy · 20 Sep 2002, 05:28 (Ref:384593)

Barbarosa, if you've got a minute, please elaborate on "my father's F1..."

Barbarosa · 20 Sep 2002, 06:01 (Ref:384601)

Schumacher's B192 Benetton.

Barbarosa

Jordi · 20 Sep 2002, 17:26 (Ref:384928)

but in 1995 colors!

greg.n · 22 Sep 2002, 23:00 (Ref:386195)

CART engines $100,000. IRL stipulated price limit $120,000, although Chevy says their engine will be available for less. Guess where the little teams will start looking...Also,honda's and toyota will be more expensive than that but probably subsidised, if you can get a contract and if they are substantially more competitive than the Chevy how long are GM going to hang around. Remember in CART that Ilmor had an engine that Chevy financed and most of the field ran them. Then Toyota and Honda turned up and Chevy left...

macdaddy · 22 Sep 2002, 23:05 (Ref:386199)

Ilmor has just been purchased by Mercedes.
I know that's got nothing to do with the thread, which was one I wasn't going to respond to in the first place.

Lee Janotta · 23 Sep 2002, 14:04 (Ref:386626)

Hmm... I'm rather wary of being in the stock market the way the US government's being run right now. Which is one of the reasons I hope CART's taken private again as soon as possible.

Jay · 23 Sep 2002, 14:07 (Ref:386629)

It would sure help... and if they are going to do it, there's no time like the present.

Barbarosa · 23 Sep 2002, 18:25 (Ref:386734)

Quote:

Originally posted by Jordi
but in 1995 colors!

Yeah, we know, Jordi. But, he likes the colors and doesn't like how much it would cost to repaint the car to match it's twin. If he had it painted correctly, he'd have to get a new helmet, new suit, new umbrella... he's really gotten cheap in his old age! That or his big crash two years ago knocked more loose inside that Colombian head of his than we figured.

Funny thing is, his second car was Lynn St. James' '91 JC Penny car. The rear wing started to go while Barry Waddell was running it this weekend so we swapped out the wing from a friend's Rahal car, which is yellow and blue (Colombian colors), which also matches Waddell's racing suit. We figure if Barry Keeps driving the second car at the vintage races, it will be painted like Rahal's Buick by the time we get to the BRIC up at Road America next year.

Barbarosa

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