This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Earnings, Titanic Deal Please Premier Ex Investors

Stocks in this article: PRXI

NEW YORK ( TheStreet) -- In value land, it sometimes takes a great deal longer for a situation to play out than you had originally expected. While this can be frustrating at times, the rewards of patience can be great. Getting there, however, is at times frustrating.

Patience is a virtue in value investing, but you also have to know when to throw in the towel; to know when to admit that your investment thesis was incorrect. There have been times when I've waited too long for a story to play out; there have been times when I've given up too early. You try and learn from these mistakes, and move on.

At times, Premier Exhibitions (PRXI), which owns thousands of artifacts salvaged from the Titanic wreck site, has been in the news over the past several months as the company has sought a buyer for this massive collection.

The company, whose primary business is traveling exhibitions (such as "Bodies . . . The Exhibition"), had endured many years in the courtroom in order to gain title to the Titanic artifacts. After those hurdles were ultimately crossed in August of 2011, Premier announced that it would sell its collection of more than 5,000 Titanic relics, appraised at $189 million in 2007, to the highest bidder.

Due to the nature of this collection and the historical significance, the courts did put stipulations on the sale. For one, the entire collection had to be sold together, and the court had to approve the winning bidder. The announcement of the winning bid was to have been made on April 15, 2012, the 100th anniversary of the Titanic disaster.

With the appraisal of the collection much higher than the current market cap, Premier shares more than doubled between the announcement of the auction in December and late March. Part of those gains, however, were given back when April 15 came and went, and there was no deal. Premier announced that it would take more time to close a sale.

Of course, this led to speculation that there were no bidders, or that bids were well below expectations. The company would not comment either, and it appeared as though the whole setup; an auction on the 100th anniversary of the Titanic sinking, had turned into a major blunder.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs