Author Topic: Time to Buy Colt  (Read 9891 times)

alfsauve

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Time to Buy Colt
« on: May 09, 2015, 07:58:58 AM »
Not new news either, but it seems looming.  Their, "haircut or a shave" hasn't played out yet, but it doesn't look good either way.  Even if they can avoid liquidation, Chapter 7, a Chapter 11 reorganization will still not leave them that much better off in the long run.

So it's time to buy Colt.   Not the stock, silly, but the guns.

I imagine especially the SSA's will become valuable down the road.

[Sorry, forgot the link]

http://www.thefirearmblog.com/blog/2015/05/06/colts-struggling-to-stay-afloat-bankruptcy-looms/?utm_source=Newsletter&utm_medium=Email&utm_content=2015-05-09&utm_campaign=Weekly+Newsletter

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tombogan03884

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Re: Time to Buy Colt
« Reply #1 on: May 09, 2015, 08:14:32 AM »
They have been in financial trouble since 1836. Nothing new about mismanagement there.

billt

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Re: Time to Buy Colt
« Reply #2 on: May 11, 2015, 08:30:20 AM »
They'll manage to stay alive as long as the government needs them for the M-16 contract. FN and Remington produce only a small portion of M-16 parts and guns for the military. Tom is right. They've been mismanaged for decades. As long as they stick to the basics, (AR's, 1911's, Single Action Army's), and stay away from "Smart Guns", and disasters like the "All American 2000", their end product has always been good, just not the idiots running the place. Another one of their big mistakes was discontinuing the Python. Again, it was one of the few things they did right.

alfsauve

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Re: Time to Buy Colt
« Reply #3 on: May 13, 2015, 05:10:01 AM »
Another deadline came and went with inclusive results.   Some debt was restructured but not enough.

The next deadline is 5/18.

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alfsauve

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Re: Time to Buy Colt
« Reply #4 on: May 22, 2015, 05:30:59 PM »
So another week and it doesn't look good.

Quote
S&P debt ratings are officially the lowest possible, "D".  Which means it's missed 1 or more payments and the company is on the brink of bankruptcy.

The company is trying to negotiate with the creditors but needs 98 percent of investors to agree.   Guess what they have gotten less than 6% agree. (6% by principal, not number of debtors.)

Quote
Standard & Poor’s also gave Colt a recovery rating of “6,” meaning there’s a zero to 10 percent expectation of recovery in a default scenario.

http://www.guns.com/2015/05/21/colts-credit-rating-cut-to-the-lowest-possible/


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Sponsor

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Re: Time to Buy Colt
« Reply #5 on: Today at 03:31:02 AM »

tombogan03884

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Re: Time to Buy Colt
« Reply #5 on: May 23, 2015, 06:29:18 AM »
To put Colt incompetence in perspective consider what gun sales have been since Obama took office.

alfsauve

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Re: Time to Buy Colt
« Reply #6 on: May 23, 2015, 07:16:07 AM »
To put Colt incompetence in perspective consider what gun sales have been since Obama took office.

A classic case of snatching defeat from the arms of victory.
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tombogan03884

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Re: Time to Buy Colt
« Reply #7 on: May 23, 2015, 08:12:19 AM »
This is in line with my work experience.
It is never the people on the shop floor who ruin a company.
It is always incompetence in the front office.

billt

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Re: Time to Buy Colt
« Reply #8 on: May 23, 2015, 08:23:29 AM »
This is in line with my work experience.
It is never the people on the shop floor who ruin a company.
It is always incompetence in the front office.

Exactly. The company I served my apprenticeship with, and worked 16 years for, was started by the grandfather before the Second World War. The father took it over and built it up with good people into the multi million dollar corporation it became. Then, in the 80's the 2 worthless kids took it over after the old man retired. They closed their doors in 2000. It would have been sooner than that if the old man hadn't come back to fix it 3 times in less than 20 years.

He finally got tired of it, and told them they were on their own. About 5 years later they closed the doors, and auctioned everything off. That company made multi millionaires out of 7 separate families before those stupid kids got a hold of it. Just because your father is a successful businessman doesn't automatically make you one. Yet another good company that proved most family owned corporations die in the 3rd generation.

The company I just retired from is coming up on it's 3rd generation of same family leaders. I'm glad I got the hell out when I did. I just heard from a coworker things are slowing down, and there is talk of layoff's. I've only been gone 5 months. 

tombogan03884

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Re: Time to Buy Colt
« Reply #9 on: May 23, 2015, 08:32:22 AM »
The only way Colt has survived this long is because buyers, mostly the Govt, has spent 155 years shoving money at them faster than they can mis-use it.

 

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