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Fender are in trouble with debts?

#8
Argali said:
UPDATE 3-Guitar-maker Fender Musical files for IPO | Reuters

Net sales of $700 million in FY 2011. I think they're doing okay, no?
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I am not sanguine that that condition is going to last. Expect immediate pressure from ignoramus "analysts" to outsource everything to some remote island where the work can be done for pennies on the dollar, shaft the qc process, and turn an American institution into a cheap whore.

I'm not happy. Wall Street has a tendency of ruining anything they touch. It's like they're Sh1t-Midases.
 
#9
Net sales of $700 million - is that up or down? What is their profit? What is their debt? They're filing the IPO to raise money to pay off a large loan. This means that they're selling a percentage of their company to repay the loan because they don't have the cash to cover it.

Remember that 3 years ago the cost of a MIM Fender Jazz was like $475. They briefly bumped it up to like $650, and today it's $600-630 depending on finish. That is, in my opinion, very erratic pricing for a product that went essentially unchanged.

Did they jack up prices to raise cash? Did they jack up prices, lose sales, and now they're short on cash? I don't know all the answers, but when you're selling a percentage of your company to cover your debts, it's generally not a sign of health.
 
#10
IPO means they will be a publicly traded stock.
The current "owners" will probBly position themselves into top board positions with majority share holdings so they can stay in control of decision making as long as possible.
IPO's are done to get OPM-other peoples money. Maybe FMIC wants to expand but lacks the capital.
I doubt the SEC would approve an IPO based on imminent failure.
Although i am morally opposed to using OPM (i have three microscopic private Inc's) in the case of FMIC id like to see it- i have been opposed to their internal decision making results for years- i somehow doubt the stockholders could do worse.
 
#12
nukes_da_bass said:
- i have been opposed to their internal decision making results for years- i somehow doubt the stockholders could do worse.
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Having been in two companies that went public, I can tell you that the only concern will be how to make more money. Quality control, innovation and customer service will only be practiced when it doesn't cost a single penny - maybe. Most of these executives would sell their mothers for a nickel, their wives for a penny and throw in their daughters if it would seal the deal.

When you are a public company you answer to the shareholders, not the consumer. They will probably see how much they can cut costs and how much they can reduce quality without losing customers.
 
#13
SoonerMatt said:
Anyone know when they're hitting the floors and how many shares are going to be made public? :ninja:
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From the linked article:

The company plans to trade the shares under the "FNDR" symbol on the Nasdaq, but didn't say how many shares the company and its shareholders intend to sell or set a price target on its stock. It also didn't say when it plans to go public.

 
#15
Jason P Bass said:
Remember that 3 years ago the cost of a MIM Fender Jazz was like $475. They briefly bumped it up to like $650, and today it's $600-630 depending on finish. That is, in my opinion, very erratic pricing for a product that went essentially unchanged.

Did they jack up prices to raise cash? Did they jack up prices, lose sales, and now they're short on cash? I don't know all the answers, but when you're selling a percentage of your company to cover your debts, it's generally not a sign of health.
Click to expand...

Man, when I started playing like 10 or 11 years ago, an MIM P was $399 or less!! Still couldn't afford one at the time because I was 14 but if they were still that price, I'd have like 5!
 

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