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Will The NFL Lockout Have An Effect on the Stock Market?

How can we profit from this uncertainty?

With the possibility of an NFL Lockout looming over our heads serious investors should look at what stocks may be affected positively or negatively. Several big name companies are closely tied with the NFL and depend on its performance for a large part of their earnings potential.

Electronic Arts: ERTS

The Madden Franchise is by far the most recognized sports video game out there. It is considered a must have for all gamers.  Although they plan to release Madden 2012 regardless of a lockout analysts are projecting a loss of $80 million in projected sales. President Peter Moore stated “The lockout’s impact could be as much as 35%” some analysts believe it may be closer to 50%.

Buffalo Wild Wings: BWLD

Buffalo Wings and the NFL go hand in hand. What NFL Sunday is complete without scarfing down a few wings with your buddies? Over 10% of their total revenue is related to NFL game days. The stock is already listed as strong buy on barchart.com and any news of an agreement between the players and owners is sure to set the stock in an upward motion.

DirecTV: DTV

DirectTV’s profits are so closely tied in with the success of their NFL Sunday Ticket service. Last season DTV pulled in close to $750 million in Sunday Ticket subscriptions. If a lockout were to end the season they could see a serious hit to their bottom line. Also, even if they is a partial lockout analysts project DTV to lose close to $700 million in subscription and advertising revenue alone.

BestBuy Co Inc: BBY

Most people including myself are prone to buying new TV’s just in time for football season to kickoff. It’s no surprise that Sony, Samsung, and LG pay out major advertising dollars to the Networks during football season.  Almost 60% of Bestbuys total revenue was earned during the 2010 football season. We will be watching closely to see how sales are affected if a lockout does occur.

Sirius XM Radio:SIRI


Sirius could actually save some money if the lockout does occur. Currently Sirius provides their subscribers with NFL broadcasting at no extra charge. If the lockout were to occur they could end up saving some serious dough although they will see loss in advertising and possibly subscription revenue.

Other companies to put on your watch list are:

Disney:DIS CBS:CBS Nike:NKE

The Pending NFL lockout is already major news and its effect will most definitely be felt on Wall St. one way or another. All the aboved mentioned stocks are already considered a strong buy on by the barchart.com analysts with the exception of Best Buy and Disney. I am urging all members to take a close look at these stocks especially Sirius XM Radio which is very tempting right now with a low price per share just below $2.20. This stock has serious buyout and longterm gain potential. This price may be a steal in the future months. Members as always perform  your own due dilligence before investing in any stocks and remember to sign up for our always FREE newsletter for alerts on the latest Wall St. happenings.

 

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