Morningstar's Small-Cap Superstars featured International Speedway (a leading promoter of motor sports in the U.S.) as a pick in late October 2007, when the stock was trading around $44. Since then, the company's shares have shed about six bucks.

Today, International Speedway reported weak second-quarter results, which were in line with Morningstar analyst Joel Bloomer's expectations. Bloomer, however, lowered his forecast for the rest of the year and for 2009, due to the continued pressures on the U.S. consumer. This resulted in a small decrease in his fair value estimate for the stock. Bloomer does not expect the headwinds currently facing the business to persist forever and believes that the shares remain significantly undervalued. I'd also note that several of our Small-Cap Superstar fund managers continue to hold shares of this wide-moat company.  

To read Bloomer's note on International Speedway's second quarter results, click on the link below:

http://quicktake.morningstar.com/Stocknet/san.aspx?id=243782