Fender to IPO

[Vass]

http://www.usatoday.com/money/markets/story/2012-03-08/fender-ipo/53411974

So there you go. Might explain some of the recent changes in various lines. They appear to have turned it around a bit from a year ago. Would be interested in seeing the financials when they finally files.

[Sharkfin]

Interesting indeed, Here's the updated link

http://www.usatoday.com/money/markets/story/2012-03-08/fender-ipo/53411974/1

[shreddermon]

Jackson / Charvel is up for sale!!!

Well, sort of.

Parent company Fender is going public, plans to do a $200m IPO in the market. Some details are here:

http://www.reuters.com/article/2012/03/08/us-fender-ipo-idUSBRE8270M420120308

I actually think this might be a decent buy in today's market, if you can get it at a decent price.

Also, if we bought enough shares, maybe we could start a shareholder revolt to pressure them to ditch the "no Gibby body style" policy. It's limiting the company's revenue growth potential, you know.

[RobRR]

Great, so now their only concern will be squeezing every last penny of profit out of their products. Say good bye to quality and hello to quantity. Sad, sad day IMO.

[Nightbat]

How to kill a company and fill the execs pockets the fastest way possible:

Go to the stock market


Just wait when Jackson sales aren't to the Board of Directors wishes and they're forced to 'cut down spending' to have a nice quarterly report
The first thing out the door is always 'quality'

Remember, the people who "own" a public company don't give a shit about what's made, as long as the stocks increase in value

[canadian bacon]

So $100 mil goes toward paying off debt.

The other 100 mil is what gets interesting - so the rest goes toward what, new product development? Current stakeholders cashing out? Buying more brands? Expanding thier own production capabilities vs. outsourcing? Factory stores like Apple?

[CowboyFromHell]

Great, so now their only concern will be squeezing every last penny of profit out of their products. Say good bye to quality and hello to quantity. Sad, sad day IMO.

Well that's your way of looking at it but most times when a company does this they're raising an influx of capital to gear up for some big change such as a major change in machinery. Despite what some people think a company going public isn't always about pocketing a huge profit, nor does it always mean bad things for the end user of a company's product.

[canadian bacon]

While I know little of the state of the instrument industry right now, it would be interesting to see if some of the capital they raise goes toward expanding thier own manufacturing capabilities (maybe here in the US) and/or aquiring other brands.

Looks like $100m goes to cleaning up the balance sheet, but really that might just be prudent (like when Ford made some smart moves pre-crisis).

[CowboyFromHell]

I'm hoping this is for a major retooling to move production of some of those models previously made in Japan to here in the U.S.

[tonemonster]

its all fun and games until they cant get anymore exotic woods.

[Nightbat]

Well that's your way of looking at it but most times when a company does this they're raising an influx of capital to gear up for some big change such as a major change in machinery. Despite what some people think a company going public isn't always about pocketing a huge profit, nor does it always mean bad things for the end user of a company's product.

I've seen most times that indeed, this gets a company a boost for a while, untill they run out of that 'influx'
No more good news of raised production, acquirements, company ''money reserves, but real hard salesfigures, that if go down will lower the overall value
stockholders pull out, insert 'manager' to 'create momentum' and hey-ho, we have a currently very common game of "cut and run"

[xenophobe]

Well that's your way of looking at it but most times when a company does this they're raising an influx of capital to gear up for some big change such as a major change in machinery. Despite what some people think a company going public isn't always about pocketing a huge profit, nor does it always mean bad things for the end user of a company's product.

A capital holding firm owns the majority of Fender shares. It's about paying off debt and making the company shares they own worth a lot more. That much is obvious.

[Shawn Lutz]

Ipo

[Jayster]

Well that's your way of looking at it but most times when a company does this they're raising an influx of capital to gear up for some big change such as a major change in machinery. Despite what some people think a company going public isn't always about pocketing a huge profit, nor does it always mean bad things for the end user of a company's product.

I've worked for privately owned companies and publicly traded companies.... By far the better of my experiences was the privately owned, BUT they were a very 'heads up' company.... didn't work off of debt, used their own capitol for all expansions and projects and made money hand over fist. When they built their 3rd processing facility, every bit of it(the land, building, equipment) was paid for in cash.... They had a 300% profit margin, good thinking for a business!

[DonP]

Cashing in their chips.

It was fun while it lasted.