Live Nation: That's the Ticket

06/01/2015 7:00 am EST


Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

Our latest featured breakout idea is a company that markets and sells live concert tickets; it also produces, promotes, and hosts theatrical, sport, and live entertainment events, explains Leo Fasciocco, editor of Ticker Tape Digest.

Live Nation Entertainment (LYV) operates Live Nation and Ticketmaster, which offer ticket sales and resale services.

The company also owns many venues, including House of Blues, The Fillmore in San Francisco, Nikon at Jones Beach, Theatre in New York, and London's Wembley Arena.

The stock came public back in late 2005 at $13.65 and hit a peak near $25 in 2007. It was dragged sharply lower during the market crash, falling to $2.47 in 2009.

Then in early 2013, the stock began a sharp run up; it has just has broken above its resistance level at $27.75 and moved to an all time high.

The stock shows heavy insider buying in February, which is very bullish. Overall, insiders have bought 1.7 million shares in recent months.

This year, analysts are forecasting a 60% jump in profits to 14 cents a share from 9 cents a year ago.

The stock sells with a price-earnings ratio of 200, making the stock only suitable for aggressive investors. However, net for 2016 is projected to surge 184% to 41 cents a share from the anticipated 14 cents this year.

Institutional sponsorship is excellent. The largest fund holder is the 5-star rated Akre Focus Inst. Fund with a 2.8% stake. It has held its position steady.

The second largest fund holder is the Principal MidCap R2 Fund, 5-star rated, with a 1.6% stake. It was a recent buyer of 99,565 shares.

We are targeting Live Nation Entertainment for a move to $35 a share off of this breakout. A protective stop can be placed near $26.

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