Posted on December 10th, 2010 · Stocks


Every so often, I like to “give” you guys a stock-situation that I am looking at. That said, you might like to take a gander at FX REAL ESTATE & ENTERTAINMENT INC. (FXRE: $.21 (bid)–$.28 (ask)).


Just so you know…I recently bought shares in this “pennystock”…my average price is about $.27 a share.

The primary reason I like this company…it is controlled by Robert FX Sillerman. Do some homework on this guy…sometimes he wins and sometimes he loses.

To get you started, FX REAL ESTATE & ENTERTAINMENT INC apparently is going into the ferris wheel business. I know it sounds “nuts”…but, the way I see it, a multi-millionaire like Robert FX Sillerman may see-something that common folks don’t.

Anyway…FX REAL ESTATE & ENTERTAINMENT INC is what I call a “trades by appointment” stock—which means, there is usually very little daily trading action in the stock…so if liquidity is your game, this one may not be for you.


  1. KM says...

    Jeff, as you suggested i did some dd on fxre. it seems that the insiders have been carrying this company for over a year and keep buying common, preffered and warrants. i also see that they are carrying the ferris wheel mfr/inventor to the tume fo $50,000 a month. i have to agree with you that something maybe in the works here. the insiders could have just walked from this play but instead kept it alive.
    i’m going to take a roll here.

  2. South Ocean says...

    Jeff —

    You promoted this stock on November 17, and then took it off your site. In the interest of fairness, can you say why you touted it, and then removed it from your site, and are touting it again?

    • JeffEats says...

      South Ocean: Just had a chance to read your post.

      The writeup for FXRE was written on November 17, 2010. It was scheduled for a December 12, 2010 publication. By accident the “wrong button” was pushed and it got out early for a few seconds. Nothing more or less.

      Thanks for reading…

  3. Paul B. says...

    Read your FXRE article over the weekend. Before that, I had never heard about what appears to be a huge coming market for tourist ferris wheels. I did a quick search on the subject and it seems that these attractions draw huge numbers of people. If I read correctly the one in London is the biggest tourist draw in the entire city with about 3.5 million vistors a year.
    This FXRE has had a very checkered past. I think that you may be onto something in that Mr. Sillerman, Mr. Torino and Mr. Kasanovs seem to have funded FXRE directly from their own personal pockets for the past year or so.
    I think that with their connections they may be able to get one may be even more spots to build these things. I also think that they have the contacts to fund what probably is a$50-100 million project.
    From what I can figure out there are close to 70,000,000 shares out. At $.20 that a current capitalization of about $14,000,000.
    I think that with Mr. Sillerman’s repuation any announcement of a signed deal to build one where make this stock takeoff. Not sure how high, but I think higher than $.20.
    I am considering buying in.
    Paul B.

  4. Jeff: I have been following FXRE for several years. The reason I know about it, is that I owned CKXE awhile back and this was a spinoff from CKXE. This company was originally going to build a huge Las Vegas hotel with an Elvis theme and revamp Graceland. Because of the economy both plans collapsed.
    This observation wheel business that they are now in only has a few players. It is very expensive to build one and the expertise in construction is enormous.
    Bill Kitchen who is FXRE’s partner is a major developer of amusement park rides. This man knows his business and definitely can play in the major leagues on this.
    From what I have been able to figure out is that FXRE may want a Vegas and Orlando location. Based on my knowledge of the gaming world I would have bet that FXRE was going to do something with Hrrah’s which was looking to do an IPo a few weeks ago. That fell through, so no IPO may put a deal like this on hold. I also see this new Orlando amusement thrill ride park as a possible spot for the wheel. I wouldn’t be surprised if that’s where FXRE goes on the first shot.
    As you correctly point out this stock trades very thin and any really buying or selling sends the stock all over the place.
    Let’s see how this one goes.
    By the way, I use to live in Deerfield Beach before business took me west.
    Good Luck!!!

  5. Scott says...

    Jeff, I worked for Robert Sillerman in NY when he owned SFX Entertainment, and he built it up to the largest concert promoter in the country before selling to Clearchannel. Before that he made a killing in radio. Mr. Sillerman is a straight up dealmaker. Lately however he’s taken some massive losses in real estate – especially in vegas where he turned over control of his land on the strip to creditors recently I believe. That said, he’s got a ton of money and a talent for deals, so if anyone can make a go of the giant wheels its him.

    • Dr. Klein says...

      Scott, any individual retail person who gets involved with Bob Sillerman is a dope. CKXE and FXRE were total disasters for the common shareholders. The only guys who made money in these public companies were Sillerman and his inside buddies. I know all about his concert and radio station successes. That said, his real estate and tv public companies have cost the average guy a bloody fortune. Personally I think the sucker’s (Sillerman) run of good luck is DONE FINISHED.

      • Scott says...

        I think you should be fair to the guy, I believe his intentions of purchasing the rights to Elvis and the acres of land on the strip to create an Elvis hotel were legitimate. His mistake was not seeing the real estate market crash, the same error made by the best of businessmen out there. Same for the hotel in the islands. His organization works hard and luck is a factor like it is for anyone in business, so if you believe its over then steer clear for sure. But I don’t believe his days of enriching people around him is over yet. He’s got too much money and talented people around him for that.

        • Dr. Klein says...

          Scott, a very good friend of mine owned a load of radio stations. the guy is smart and very seuccessful. i asked him awhile back about sillerman and he told me that he wouldn’t trust him as far as he could throw him.

        • mr. ziggy says...

          scott, i’m with you. i have met sillerman several times. i know his reputation. i know his history. not only do i think he will make fxre a winner i also think that he he will make me money on the ckxe which i just bought 5 minutes ago for $4.08 a share. i also bought 15,000 fxre this morning with an average of 32 cents. i am looking to buy more fxre over the next few days.

    • Sean R. says...

      Scott, I lost a ton of money following Robert FX Sillerman in both FXRE and CKXE. What seemed like great stock opportunities proved to be horrendous disasters. FXRE right now is 28 CENTS. It use to be 10 DOLLARS. CKXE use to be in the 20 DOLLAR RANGE right now it’s b sitting just above 4 BUCKS.

      Sillerman may have known the radio and concert business, but he really F@cked up when it came to Las Vegas real estate and tv show/rep business.

      He may make something of this amusement ride business but the lack of stock action should make BUYER BEWARE the word here.

    • JeffEats says...

      Scott: Just had a chance to read your posts.

      As my original article indicated, I own FXRE with an average price of about $.27 a share. I did my due diligence and think that Mr. Sillerman may make me some money here.

      I will tell you, Mr. Sillerman’s recent 2 year track record has been pretty dismal.

      Only time will tell…

      Thanks for reading…

  6. Stonester says...

    First let me compliment you on the nice “spin” you bring to food etc. A breath of fresh air. No one really cares what sauce goes into what pan and for how long. Nice tongue and cheek style.

    On FXRE, I gave it a good look. This ferris wheel business looks very interesting. It would seem to me that many locales could use it based on the crap economy.

    From what I gather, this isn’t a cheap proposition, that is, building one of these things.

    I think what you have here, is FXRE having gone all wrong in the real estate business is now a shell corp with a huge tax loss that Sillerman and his friends want to roll this ferris wheel business into.

    The trading in FXRE is anemic. Today it traded a total of 4940 shares which at 28 cents or so isn’t a ton of money, to say the least.

    This one is a bit too thin for me to play.

    Good luck.

  7. I was recently in London and rode in one of these observation wheels. It was awesome. From what I gather, this London Wheel is the biggest tourist attraction in London with over 3 million visitors a year. This particular wheel isn’t owned by FXRE.
    This type of wheel would be a great tourist attraction in NYC, Orlando, Atlanta, Las Vegas, just to quickly name a few cities.
    Building and operating one of these wheels isn’t a cheap proposition, but it seems that a load of money can be made from it.
    Just looking at FXRE and it appears that they have what could be a decent enough wheel. Questions as to whether they have enough capital avenues to get one done and where to build it are wide open at this time.
    It is now 2:20pm on a Wednesday and FXRE is bid $.28 ask $.30 a grand total of 300 shares all at $.30 have traded. That’s $90 in total trades.
    You would think that if FXRE really was a serious contender in this business or had something on the near horizion that its stock would be much more active that 300 shares.
    Interesting industry. This stock is telling me to stay away.

  8. Stockman says...

    Bought 6,000 today at 30 cents. Next trade was on bid at 28 cents for 340 shares. That’s total volume today and the stock closed down 2 cents at 28 cents. Verrrrrrry THIN!!!

  9. Neddy says...


    The horrendous performnace of Sillerman’s stocks CKXE and FXRE thus far in 2010 should be a red flag that this multi millionaire probably has laid his last golden egg. His recent track record stinks. If you owned shares in either have his public vehicles you got your clock cleaned. Be smart and stay clear of this clown and his ferris wheel crap.

  10. lenny r. says...

    Did some due diligence on this one. The only way this one works out is IF and it’s a big IF, Mr. Sillerman still has financial might to get things done. The past few years Mr. Sillerman hasn’t been too successful in his deals. Personally, I’d pass on this one because these wheels are expensive and can’t be rolled out quickly.

  11. Leon Horowitz says...

    To All:

    FXRE and CKXE are the Sillerman stock vehicles.
    If you own one, or both you are probably way under water on your investment.
    The game at CKXE is American Idol. If you think that Idol can continue its regign as a #1 tv show in the US then the stock at 4 bucks is probably a buy. The 4 bucks should be telling you that the MKT doesn’t think Idol’s future is too bright.
    The game at FXRE is observation ferris wheels. The original game was an Elvis Las Vegas hotel. That idea failed in a huge flame out. FXRE now reinvents itself as a ferris wheel company. Interesting new product but that 25 cent price should be telling you that the MKT doesn’t think too much of the potential.

  12. Mark says...

    Jeff i am not a trader but took your advice on SQNM and would like to by this but i dont know where one buys penny stocks as it not available with my account with ING

    • Ben C says...

      Mark, I wouldn’t be rushing to get into FXRE so fast. The stock barely trades. Today it had a total volume of 5,689 shares with a high of .35 and a low of .23. It closed at .33.
      FXRE was suppose to be a real estate play using the Elvis brand which it licensed from Sillerman’s CKXE. That whole deal collapsed. FXRE has now become a licensee of some ferris wheel company. So far, not one unit has been sold. What Jeff Eats and a few others think they see is that Sillerman and his friends fund FXRE every month and get shares and warrants. They pay $50,000 a month to keep the license. Jeff Eats probably figures that Sillerman has something in the works that will make the shares pop.
      CKXE owns American Idol. Sillerman is the biggest shareholder. Twice he tried to take it private and both times he failed. The stock is barely $4.

      Bob Sillerman WAS a player. In recent years, everything he has touched seemingly has turned to sh@t. I wouldn’t count on this guy one iota to get FXRE or CKXE back up.

      Because he was hot years ago doesn’t mean he is still hot. I think that the guy has already shot his load and is just jerking shareholders of both companie around.

      By the way, I owned FXRE and CKXE and lost a fortune.

  13. JeffEats says...

    Mark: Just had a chance to read your post.

    Any broker can trade FXRE.

    If you are looking for online or discount brokers, try TDAMERITRADE.

    Make sure you do your due diligence on FXRE. It is very speculative. It is also very thinly traded.

    Thanks for reading…

  14. Paul Winston says...

    FXRE is a pennystock.
    FXRE is very speculative.
    FXRE trades thin.
    FXRE is a bet on Robert F.X. Sillerman.

  15. FREDBOB says...

    Great calls on SQNM and BH.
    I think you got a homerun coming in FXRE. I’m looking for 3 wheel projects to come FXRE’s way very soon. Keep an eye on Orlando, Las Vegas and NJ, that’s right XANADU the old Meadowlands.
    No way to predict price, but I’m thinking $2-3 a share easy.
    On CkXE you mssed on the first outing. Now at $4.04. Those who buy in now get 50% more on a up move. Looking for Sillerman to do something major here.

  16. joe z says...

    I’m no stock expert, then again most of the esperts don’t know their asses from their elbows either.
    This stock is 100% speculation.
    If you want to throw a few bucks at it throw away, then again, you may actually be throwing your money away.

  17. Mr. Nat says...

    A friend of mine who is pretty saavy in the computer world told me that your site has something like 11,000 different people reading a month and that those people visit your site something like 23,000 a month. Not sure what that all means but he said for a blog in a small segment that’s a nice sized following.
    I live in a country club in PB and a number of guys that I have coffee with in the am follow your blog. They mentioned your recent discussion on FXRE and CKXE. They really didn’t go into too much detail but the general consensus was that FXRE could be a good spec play in the $.25 range.
    I did a bit of research and see that these ob-wheels do very well in the locations that have them. They seem to be very expensive to build and require a great deal of local approval to get off the ground. That’s probably why the US doesn’t have any. I would think with govts hurting that these wheels could now get through better than in the past.
    Something I hit on is that Mr. Kitchen who is developing FXRE’s wheel also did a huge project on another ride for the Mall of America. The same company that owns the Mall just signed a LOI to buy the old Meadowlands site in NJ to finish out a huge entertainment complex.
    To make a long story much shorter, I wouldn’t be surprised to see FXRE get involved in that Jersey deal.
    This morning I started to try and buy some stock. I think that this could get interesting.

  18. NELLIE says...

    Bought 5000 at $.25. Also bought 1500 at $.35. Very little trading here.
    Like the possibilites.

  19. ZEEE says...

    Interesting speculation.
    The other day it traded over 100,000 shares in the 35-37 cents range. The next day 1,500 shares in the 25-35 range.
    Looks like very few people know anything about this one.
    Interesting story.

  20. ZEEE says...

    hey jeff, symbol changed today CEXE. Company also changed its name to Circle Entertainment.

  21. Mr. K. says...

    Bought 5,000 CEXE today at $.37.
    I think that Mr. Sillerman will make this work.
    I think that any PR gets to this to a buck real fast.

  22. Dr. George says...

    jeff, stock is now $.25.
    anything going on here?

  23. KC says...

    Last week Sillerman took control of a 1 cent shell. In two days it traded close to $6 a share. Yesterday he did a 1-10 reverse split and the stock right now is $32.50. That means a 1 cent investment is currently worth $3.25 The symbol on that one is FNCX.

    When all of that was happening, CEXE ran up as high as $.70 a share. It has now dropped back and is $.31-$.34.

    I own CEXE.

    I think that if and when CEXE announces a wheel deal, the stock is going to go much higher.

    The bet here is that a deal happens.

  24. anan says...

    hey jeff, saw an article that a new 9.6 acre amusement park is being planned for vegas. it has a planned 500ft ferris wheel. my bet is cexe is the player here.
    the first hearing before the city is set for 3/2/11.
    if this is cexe and it gets through thi stock is going to go crazy.
    i laso think that orlando is in the cards for a wheel.

    • Steime says...

      Why is no one posting about this stock any more? The news has all been good. Only waiting for a contract to be signed in Orlando and things will start moving.

      One of Silverman’s other ones, CKXE got a buyout offer the other day. It is at $4.60 now.

      PS I love this site.

      Jeff Rocks!

Leave a Comment