During the South Seas Bubble of 1720, numerous “bubble companies” with highly questionable business propositions were floated and excited great speculation. Perhaps the most questionable was one that described its business as “A company for carrying on an undertaking of great advantage, but nobody to know what it is”. Needless to say, in due course the company disappeared along with its founder.

Today, Sports Entertainment Enterprises, Inc. (SPEA) was pumped. From 10¢ to $6.41. SPEA: Last trade: 6.41 Change: +6.31 as of 3:59 PM ET. The apparent trigger was that Elvis Presley Enterprises, through a holding company, bought 94% of the outstanding stock for 10¢ a share.

REUTERS ABRIDGED BUSINESS SUMMARY
“Sports Entertainment Enterprises, Inc. (SPEA) has disposed of all of its operating businesses during the year ended December 31, 2002. The Company will continue to incur costs that are necessary for it to remain an active public company. These ongoing costs are expected to be funded by a related party and will accrue interest at 10% per annum until repaid. Its primary objective is to seek out and pursue a transaction with a business enterprise that might have a desire to take advantage of its status as a public corporation. There is no assurance that the Company will acquire a favorable business opportunity through such a transaction. The Company is marketing itself to investment bankers and others who may be able to facilitate a public shell merger transaction. Several private companies with the desire to become public have been presented to SPEA, none of which were deemed acceptable opportunities for the Company’s shareholders.”

In short, there was no business nor any assets, just a shell company. Just like in the above quote from Mackay’s “Extraordinary Popular Delusions and the Madness of Crowds.”

Now you know, beyond a shadow of a doubt, that you are watching another of history’s spectacular bubbles. Along with the South Sea bubble, the Mississippi Company bubble and the tulip bubble. Now all we need is a name. Enjoy the show.