Fender going public...

  • Thread starter Thread starter ctoddrun
  • Start date Start date
My favorite part of that article is the talk of a tanking Guitar Center:

"And some 17 percent of first-quarter sales came from Guitar Center, a retail chain with debt troubles - Standard & Poor’s in May described its liquidity profile as “less than adequate"
 
A better investment would be buying a couple nice vintages, and sealing them in a vault for 25 years. Doesn't look like there's much profit to be had in buying the stock.
 
I saw that the other day and was very surprised. They are setting themselves up for failure. Leo is probably doing backflips in the grave about now. Within a year or two of going public, watch them spin off all the non-profitable companies they have acquired over the last 10 years. Being driven for profit in the private sector where nothing is disclosed is one thing - being driven for profit int the public sector for shareholders is a completely different ball game. Cutting corners and savings to the bottom line will impact what bit of quality is left in some of Fender's products.
 
steve_k":17u02qjt said:
I saw that the other day and was very surprised. They are setting themselves up for failure. Leo is probably doing backflips in the grave about now. Within a year or two of going public, watch them spin off all the non-profitable companies they have acquired over the last 10 years. Being driven for profit in the private sector where nothing is disclosed is one thing - being driven for profit int the public sector for shareholders is a completely different ball game. Cutting corners and savings to the bottom line will impact what bit of quality is left in some of Fender's products.
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Yeah, I agree. I can't see this being good for guitar players.
 
steve_k":34tf652g said:
I saw that the other day and was very surprised. They are setting themselves up for failure. Leo is probably doing backflips in the grave about now. Within a year or two of going public, watch them spin off all the non-profitable companies they have acquired over the last 10 years. Being driven for profit in the private sector where nothing is disclosed is one thing - being driven for profit int the public sector for shareholders is a completely different ball game. Cutting corners and savings to the bottom line will impact what bit of quality is left in some of Fender's products.
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Yep, experiencing this in the airline business right now. :doh:
 
n4085b":m2qhbfec said:
steve_k":m2qhbfec said:
I saw that the other day and was very surprised. They are setting themselves up for failure. Leo is probably doing backflips in the grave about now. Within a year or two of going public, watch them spin off all the non-profitable companies they have acquired over the last 10 years. Being driven for profit in the private sector where nothing is disclosed is one thing - being driven for profit int the public sector for shareholders is a completely different ball game. Cutting corners and savings to the bottom line will impact what bit of quality is left in some of Fender's products.
Click to expand...

Yep, experiencing this in the airline business right now. :doh:
Click to expand...

Karma's a bitch and sustainability is even tougher :D
 
Does it matter..there seems to be about 50 Strats for every guitar player..Fender could quit making Strats for 20 years and there would still be plenty to go around.
 
i played a $1500 fender last night and could not believe what utter crap i was holding in my hands for that price.
yet every now and then they hit on a winner like the road worns, the super champ xd, etc
but man they are few and far between and the consistency is just non existant.
 
I don't know, they could certainly produce quality for less. A well made Mexican...especially if they replaced the parts on the Mexicans with better quality parts and raised the prices a tad...like on the road worns. I mean look at what most people do. I for one did it with my Esquire. kept the body and neck, added RS Guitarworks and Callaham. Done. $600. Granted, I used used Fender and new RS and Callaham, but Fender would have better choices and prices due to economies of scale. They could stop releasing so much crap and unnecessary redundant models.
 
Suhr, Anderson, PRS, and Ernie Ball are all buying each a shot right now. :lol: :LOL:
 
Until consumers stop shopping for names rather and start shopping for quality, these big companies aren't going to change. This is the walmartization of society. People coplain about the economy but still buy imported crap. No one gets rich except executives, foreign factories, and stockholders. I blame the stupid consumer for most problems.
 
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