Okay, NASCAR fans, "start your engines."

International Speedway Corp (ISCA) has been on my radar screen since the economic decline began. I haven't pulled the trigger and bought the stock yet, but I do have some sincere interest. Why? I'm not a NASCAR enthusiast, but I am fascinated with their business, and massive following.

Rule #1 in starting a successful business is to market and sell to the masses. While NASCAR is a niche business, it does have a massive fan base.

Here's what interests me;

Living here along the "Red Neck Riviera" (Panhandle of Florida), I see NASCAR fans everywhere I go. If you are not familiar with their existence, they are the drivers you see everyday with numbers such as 8, and 24 on their back windshields. This number displayed on the car or truck is the number of a persons favorite driver. For example, number 24 is Jeff Gordon, 88 is Dale Earnhardt Jr..

Non NASCAR fans may not believe this, but car racing is no longer just a redneck sport. According to a 2004 NASCAR survey, about 75% of the fan base have attended college, over 25% own their own homes, and 36% make more than $50,000 a year.

International Speedway Corp (ISCA) founded in 1953 and is by far the biggest, and most successful car racing business in the world. They own, promote, or operate 13 race sites throughout the United States.

Here are some you might be familiar with;

* Daytona International Speedway® in Florida
* Talladega Superspeedway® in Alabama
* Michigan International Speedway® located outside Detroit
* Richmond International Raceway® in Virginia
* Auto Club Speedway of Southern CaliforniaSM, near Los Angeles
* Kansas Speedway® in Kansas City, Kansas
* Phoenix International Raceway® in Arizona
* Chicagoland Speedway® near Chicago, Illinois
* Route 66 RacewaySM, near Chicago, Illinois
* Homestead-Miami SpeedwaySM, in Florida
* Martinsville Speedway® in Virginia
* Darlington Raceway® in South Carolina
* Watkins Glen International® in New York.

International Speedway also promotes more than 100 events during the race season. The company makes a ton of money through radio, television, and merchandise sales.

In my opinion, International Speedway fits the description of a highly predictable business with a recurring, and loyal revenue base. A weak economy, and consumer spending concerns have hurt the stock price as ticket sales have slowed. But once the economy begins to show signs of life, sales will rebound.

The impressive part of ISCA's business is its growing popularity. NASCAR is the second highest rated sport on television, and corporate sponsorship has found that NASCAR fans are 3 times more likely to purchase a sponsor’s product or service than non fans.

Percentage of total revenues are fairly diverse. On first glace one may assume ticket sales are the bulk of the revenue. Here is the actual breakdown;

Television and Ancillary- 33%
Sponsorship and Hospitality- 26%
Food, Beverage and Merchandise- 10%
Admissions/ Ticket Sales- 30%
Miscellaneous- 1%

Earnings Per Share

2004- $2.46
2005- $2.99
2006- $3.24
2007- $2.85
2008- $2.80

During this economic decline, ISCA insiders have been accumulating their stock of International Speedway Corp. (ISCA) steadily through open market purchases and stock grants.

If and when the economy improves, I believe ISCA will be off to the races again. A rebound in the economy could see the share price climb back to 2007 levels of $50 per share, a gain of 75%.