After a string of disappointing financial results, NASCAR merchandiser Action Performance Cos. is out of the winner’s circle on Wall Street. Analysts and investors who cheered the Tempe company’s strong rebound and bid up the stock early last year now are questioning management’s credibility and the strength of the souvenir boom for stock-car racing. The most nagging issue has been production delays on 2003 replica cars because of body-style changes in the Pontiac and Monte Carlo. The so-called retooling hurt results in three quarters. The company says the retooling is complete. A big concern now among investors is with demand, especially for Action’s line of lower-priced souvenir NASCAR cars sold in stores such as Wal-Mart. The company shocked analysts last week when it reported a significant drop-off in orders from retailers for its fiscal third quarter.( Arizona Republic )(5-6-2003)
