Buy stock in Fender...

tjmangum

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You can make a small fortune in the stock market..... as long as you start with a large fortune! (rimshot) :D
 

fronobulax

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Seems like Fender withdrew the IPO. Reasons cited in the article I read were that investor response at the proposed price was tepid, at best, and Fender doesn't need the cash badly enough to lower the price now.

Guitar Center was mentioned as being responsible for about 16% of Fender's revenue and the fact that GC is not doing so well as an investment effected the perception of Fender. In other words, if GC is sinking it might take Fender with it.
 

6L6

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Fender CEO just announced they are withdrawing the IPO citing poor conditions in European economy.

Bill
 

poser

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Re: more on the Fender IPO story

Wow. That article describes a pretty gloomy future for Fender. :(
 

learnintoplay62

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I'm not sure about that Poser. Fender has a lot of irons in the fire and seem to be well diversified. It seems to me that they are partnered up with a struggling company (GC ) About 15% of there sales come from them and in my opinion GC is not doing to well . Opinion based on shopping experience and articles such as this one. I think they are just taking it on the chin from a slow global economy. Hopefully they won't give up, but keep coming up with a better and more innovative way of doing business. :wink:
 

adorshki

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learnintoplay62 said:
I'm not sure about that Poser. Fender has a lot of irons in the fire and seem to be well diversified. It seems to me that they are partnered up with a struggling company (GC ) About 15% of there sales come from them and in my opinion GC is not doing to well . Opinion based on shopping experience and articles such as this one. I think they are just taking it on the chin from a slow global economy. Hopefully they won't give up, but keep coming up with a better and more innovative way of doing business. :wink:
I agree LTP. While 15% is a significant chunk of anybody's business, I don't see it as enough to "sink" 'em.
They're absolutely correct to wait until things "stabilize" in Europe.
 

fronobulax

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learnintoplay62 said:
Fender has a lot of irons in the fire

I'll agree but I'm not sure they are hot enough to carry the company yet. I do think the market for guitars is no longer growing rapidly and Fender and Gibson both need to find related products that appeal to a larger market, IMO.
 

adorshki

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fronobulax said:
learnintoplay62 said:
Fender has a lot of irons in the fire

I'll agree but I'm not sure they are hot enough to carry the company yet. I do think the market for guitars is no longer growing rapidly and Fender and Gibson both need to find related products that appeal to a larger market, IMO.
Didn't Gibson marry up with Sony for home audio entertainment and Fender move into car audio? (Both mentioned here on LTG)
Just sayin', yeah they're already doin' that... :wink:
 

fronobulax

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adorshki said:
fronobulax said:
learnintoplay62 said:
Fender has a lot of irons in the fire

I'll agree but I'm not sure they are hot enough to carry the company yet. I do think the market for guitars is no longer growing rapidly and Fender and Gibson both need to find related products that appeal to a larger market, IMO.
Didn't Gibson marry up with Sony for home audio entertainment and Fender move into car audio? (Both mentioned here on LTG)
Just sayin', yeah they're already doin' that... :wink:

Yep. I was making an oblique reference to that and adding my own opinion that it is not clear that Joe and Jane Consumer will recognize the Fender or Gibson brand when they have a choice, so I don't think those efforts are yet mature enough to be successful.

For example, I remember when VW put some serious audio in a vehicle and had some guitarist wailing away like a VW bug was a stack of Marshals. But at the time I could not have actually told anyone that the guitarist was Slash because I had lived a sheltered life and heard of Slash and Guns 'n Roses but not enough for name or visual recognition. And I still don't recall who made VW's audio. So to the extent that I am in the target market - I do have a job and money, after all, there needs to be much more work done on brand awareness and spokesfolks who are known to non-musicians. But yeah, if it is grow or die, I don't think anyone is going to grow if their primary product is electric guitars so the diversification efforts are a good thing.
 
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