NEW YORK (TheStreet) - The recent weakness of electronic music culture (EMC) roll-up SFX Entertainment (SFXE) is a buying opportunity, according to analysts at Jefferies. That recommendation comes a day after the company's shares tumbled as much as 20% during a highly unusual conference call led by Chairman and CEO Robert 'FX' Sillerman.
CEO antics aside, good things appear to be developing at SFX Entertainment, which may allow the burgeoning music festival powerhouse to impress Wall Street in 2014. "Near-term weakness is a buying opportunity. It was a good Q. With demand for tickets still strong, SFX is planning new festivals and expanding existing festivals into multi-day affairs," Jefferies analysts said.
SFX Entertainment's "weakness" is likely the result of a profanity laden conference call that involved inquiry by investors and analysts into the mental health of CEO Sillerman, and the company's alleged "sh__ty deals."
Given SFX's 11% tumble on Thursday in the wake of the company's conference call, some investors appear to have been put off by the antics. SFX's conference call was held in Miami, where Sillerman and other top executives are attending an EMC industry conference.
Anyone investing in a company founded by Sillerman, however, should understand that the SFX CEO isn't cut from an ordinary Wall Street cloth. "[If] you've ever heard Bob's investor calls, he does them very differently from other CEOs," Ed Tagliaferri, a SFX Entertainment spokesperson said in a Thursday e-mail.