Bilbo Posted March 9, 2012 Share Posted March 9, 2012 http://www.bbc.co.uk/news/business-17306242 $200 shares floatation. I think most of the players on here should get some for free; they have spent so much on Fenders already.... Quote Link to comment Share on other sites More sharing options...
MacDaddy Posted March 9, 2012 Share Posted March 9, 2012 [i]current debts of $246m.[/i] not the investment one would hope for? Quote Link to comment Share on other sites More sharing options...
thumperbob 2002 Posted March 9, 2012 Share Posted March 9, 2012 Many companies have debt much more than that pal- certainly doesnt tell the whole story- revenue up massively in the last period. However I would never invest in something where emotion would get in the way. I play a Fender so of course it would. I do this for a living by the way... Quote Link to comment Share on other sites More sharing options...
noelk27 Posted March 10, 2012 Share Posted March 10, 2012 [quote name='thumperbob 2002' timestamp='1331303962' post='1571093']Many companies have debt much more than that pal- certainly doesnt tell the whole story- revenue up massively in the last period. ... I do this for a living by the way...[/quote] So, in your professional opinion, a company returned to profit in one year, with a $3.2m (which represents less than 0.005%) pre-tax profit from $700m in sales, where the sales figure has been grossly inflated by massive product price hikes in the last year or so, shouldn't, in any way, be concerned about carrying $246m in debt? And you wonder how the western economies got themselves into the state they're currently in. Quote Link to comment Share on other sites More sharing options...
Kiwi Posted March 10, 2012 Share Posted March 10, 2012 My concerns are: 1) Have they over extended themselves and remained overextended inspite of the recession? 2) Why are they floating shares rather than selling off subsidiaries like SWR? I've seen share float used to raise revenue shortly before owner/directors retire... Quote Link to comment Share on other sites More sharing options...
Lfalex v1.1 Posted March 10, 2012 Share Posted March 10, 2012 [quote name='Kiwi' timestamp='1331355401' post='1571818'] 2) Why are they floating shares rather than selling off subsidiaries like SWR? [/quote] [i]Perhaps[/i] they're more profitable than the core business? SWR had been around for a good few years before the big F ate them up... Quote Link to comment Share on other sites More sharing options...
Wolverinebass Posted March 10, 2012 Share Posted March 10, 2012 Maybe they'll sell Hamer. Then at least you'd be able to buy a 12 string bass in this country as oppose to being patronisingly told by Fender UK "you can't." As far as I'm concerned, as Noelk27 says the massive hikes in prices and the fact that they really haven't changed their models in almost 60 years is reasonable grounds for if not laughing, certainly saying that we told you so. Quote Link to comment Share on other sites More sharing options...
Gust0o Posted March 10, 2012 Share Posted March 10, 2012 [quote name='noelk27' timestamp='1331346109' post='1571801'] So, in your professional opinion, a company returned to profit in one year, with a $3.2m (which represents less than 0.005%) pre-tax profit from $700m in sales, where the sales figure has been grossly inflated by massive product price hikes in the last year or so, shouldn't, in any way, be concerned about carrying $246m in debt? And you wonder how the western economies got themselves into the state they're currently in. [/quote] Google "gearing", Noel. It all depends on what the nature of the debt is. The sale of subsidiaries is an interesting question - would raise capital without needing to turn to the market; but all depends on Fender's long-term plans. Quote Link to comment Share on other sites More sharing options...
thumperbob 2002 Posted March 10, 2012 Share Posted March 10, 2012 [quote name='noelk27' timestamp='1331346109' post='1571801'] So, in your professional opinion, a company returned to profit in one year, with a $3.2m (which represents less than 0.005%) pre-tax profit from $700m in sales, where the sales figure has been grossly inflated by massive product price hikes in the last year or so, shouldn't, in any way, be concerned about carrying $246m in debt? And you wonder how the western economies got themselves into the state they're currently in. [/quote] Hi pal. I would give no opinion about a company where I have not spent many hours of research. I certainly have not done this but simply made a point that debt is not the whole story. My point was that I would not invest , or indeed look at a company where there would be a measure of emotion involved. I manage over £60 million of assets in my own investment company FYI. Quote Link to comment Share on other sites More sharing options...
Kiwi Posted March 11, 2012 Share Posted March 11, 2012 [quote name='Lfalex v1.1' timestamp='1331363757' post='1571836'] [i]Perhaps[/i] they're more profitable than the core business? [/quote] Perhaps a lot of things. Quote Link to comment Share on other sites More sharing options...
paul_5 Posted March 11, 2012 Share Posted March 11, 2012 perhaps all cats are left-handed Quote Link to comment Share on other sites More sharing options...
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