Goodbye Crack-and-Fail

http://biz.yahoo.com/djus/030127/1552000737_2.html

 

"J-C" <[email protected]> wrote in

Did you actually read the article?

JT

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Do you actually think that someone would dump more money into such a losing venture? Its over.

 

"J-C" <[email protected]> wrote in message news:[email protected]...
> Do you actually think that someone would dump more money into such a
losing
> venture? Its over.

Yeah? When the ceo was using this public company as a private bank for his real estate deals (
reported in the business press over the last couple of years) _that_ didn't seem to cause any
uproar. . .

--
Andrew Muzi http://www.yellowjersey.org Open every day since 1 April 1971

 

My favorite was when he bought a private jet for himself, using the company's money.

"A Muzi" <[email protected]> wrote in message news:[email protected]...
> "J-C" <[email protected]> wrote in message news:[email protected]...
> > Do you actually think that someone would dump more money into such a
> losing
> > venture? Its over.
>
>
> Yeah? When the ceo was using this public company as a private bank for his real estate deals (
> reported in the business press over the last couple of
years)
> _that_ didn't seem to cause any uproar. . .
>
> --
> Andrew Muzi http://www.yellowjersey.org Open every day since 1 April 1971

 

Well I've had a crack and fail FS MTB of theirs since 1996 and it has neither cracked nor failed,
has been ridden a lot and is a superb bike and I'm 196 lb.

They make superb frames.

 

In article <[email protected]>, [email protected] says...

>http://biz.yahoo.com/djus/030127/1552000737_2.html

Don't count them out just yet. If they dump the motorcycle division and concentrate on their bike
business, they should come out ok.
-----------------
Alex __O _-\<,_ (_)/ (_)

 

"J-C" <[email protected]> wrote:

> http://biz.yahoo.com/djus/030127/1552000737_2.html

That's what happens when a good company goes public. They start chasing revenue instead of doing
what they excel at. In this case, lousy motorcycles undid the success of excellent bicycles.

Certainly the IPO of a successful company marks the point at which a serious weasel infestation
becomes permanent/terminal.

I like my Cannondales and my factory warranties, but frankly I could care less if we lose another
worthless publicly held company. Once an outfit has sold off any hope of maintaining its principles
or integrity, good riddance.

Chalo Colina

 

"J-C" <[email protected]> wrote in message news:[email protected]...
> Do you actually think that someone would dump more money into such a
losing
> venture? Its over.

If you had read the article you would have observed that the group acquiring Cannondale will operate
the bicycle business as a "going concern." And why not? It makes money:

"For the first quarter ended Sept. 28, the bike company reported pretax income of $628,000 from
bicycles "

It's the motorsports business that's a goner:

"and a pretax loss of $7.4 million from its motorsports business."

 

I think you'll find with some pretty simple research that the bicycle division is far more
profitable than a lot of the bicycle brand sout there - even the very well known ones. If they raise
enough capital to be able to afford to dump the motorcycles then they'll continue as usual.

"J-C" <[email protected]> wrote in message news:[email protected]... Do
you actually think that someone would dump more money into such a losing venture? Its over.

 

In article <[email protected]>, [email protected] says...
> Do you actually think that someone would dump more money into such a losing venture? Its over.

They're offering the bicycle and motorcycle assets separately. I can easily see someone wanting to
buy a profitable bicycle company with a valuable trade name once it's separated from the
ill-conceived motorcycle division.

--
[email protected] is Joshua Putnam <http://www.phred.org/~josh/> Braze your own bicycle frames. See
<http://www.phred.org/~josh/build/build.html

 

On 28 Jan 2003 16:23:29 -0800, [email protected] (Bluto) wrote:

>"J-C" <[email protected]> wrote:
>
>> http://biz.yahoo.com/djus/030127/1552000737_2.html
>
>That's what happens when a good company goes public. They start chasing revenue instead of doing
>what they excel at. In this case, lousy motorcycles undid the success of excellent bicycles.
>
>Certainly the IPO of a successful company marks the point at which a serious weasel infestation
>becomes permanent/terminal.

And your evidence that this is the case with Cannondale is?

--
Scott Johnson "When we decide to destroy a population, we send a definite order to them who have the
good things in life and yet sin. So that Allah's word is proven true against them, then we destroy
them utterly." (Koran, 17:16-17)

 

Top Sirloin <[email protected]> wrote:

> [email protected] (Bluto) wrote:
>
> >Certainly the IPO of a successful company marks the point at which a serious weasel infestation
> >becomes permanent/terminal.
>
> And your evidence that this is the case with Cannondale is?

The CEO had plundered the C'dale bankroll and credit line for his own personal gain. This is not the
approach a founder and private owner takes to a company he values and has taken pains to build. It
appears typical, however, of contemporary corporate management, both as I have witnessed firsthand
and as frequently reported in financial news.

Cannondale took on motorcycle manufacturing for no justifiable reason except that the dollar value
of the moto market is higher than that for bikes. "Because money exists" is about the dumbest
possible reason to get into any business, but publicly held companies do it all the time.

Private companies tend to stick to their strengths and founding principles, good or bad. Rarely does
that make them as boneheaded or as corrupt as public ones.

Chalo Colina