JS Technologies/Suhr Guitars bought by Investment firm?!?!

Discussion in 'Guitars in General' started by ChazMania, Jun 17, 2015.

  1. Guitar Josh

    Guitar Josh Resident Curmudgeon

    Messages:
    18,659
    Joined:
    Jul 24, 2007
    Location:
    TGP, Always TGP
    I've said my piece. My best to Suhr and its employees.
     
  2. rumbletone

    rumbletone Silver Supporting Member

    Messages:
    5,987
    Joined:
    Jun 19, 2013
    Location:
    Vancouver BC
    Merging an unsuccessful company with significant tax losses with a successful operating company with taxable profits is not uncommon. Again, not saying that's the driver here, but it can be a significant factor.

     
  3. godfather.009

    godfather.009 Member

    Messages:
    4
    Joined:
    Jun 18, 2015
    What I pointed out is the magnitude of AVLP's losses is gargantuan compared to JST's operations.

    Hypothetically, let's say JST earns $1.8m to $3.6m a year... then AVLP's net losses are 50x to 100x JST's earnings. Indeed, tax angles are not uncommon, but given the differences in size, I don't know how it can work here.

    If this thing works, it should be a very interesting case study of investment banking sorcery :)

    Let's not get lost. Fact is, JST is going to be acquired by a company that is losing money and is heavy on debt. This is something we cannot deny and this usually has grim implications. How it can work from here moving forward is anybody's guess though.
     
    davidespinosa likes this.
  4. tjontheroad

    tjontheroad Just Wanna Be Misunderstood Vendor

    Messages:
    7,457
    Joined:
    Oct 10, 2014
    Location:
    New Jersey... YOU GOTTA PROBLEM WITH THAT?!?!
    Wow! I never intended to start a TGP 101 financial course :hide2

    I guess the real lesson here is what happens when you become a public company. Everyone gets a shot at you.

    I wonder what this guy would do?

    [​IMG]
     
  5. ufguy73

    ufguy73 Gold Supporting Member

    Messages:
    3,954
    Joined:
    May 5, 2009
    exactly, and everyone and their brother is guessing - except those that actually have as many facts as possible at their disposal (namely the deal participants). lol
     
  6. sws1

    sws1 Member

    Messages:
    10,063
    Joined:
    Aug 19, 2002
    Location:
    East of the west
    Uhhh - In my view of the world, that means it's time to sell it short, as the speculators have all jumped in.

    People can do whatever they want with their own money, but I choose to invest in companies whose business strategy is more than "to make money using my smarts and my friends." If I could have invested directly in Suhr, I would have.

    About Avalanche International Corp.Avalanche International, Corp is a Nevada corporation and holding company, publicly traded on the OTC Markets platform. The Company is focused on creating superior long-term returns for shareholders through a unique structure of diversified holdings and currently has one wholly owned subsidiary, Smith and Ramsay Brands, LLC, a manufacturer and distributor. The Company has selected a mergers and acquisitions strategy as its primary growth driver for the foreseeable future leveraging the Wall Street and activist background of its Chairman along with the vast corporate integration and management talents of its President and CEO.
     
  7. Jon Silberman

    Jon Silberman 10Q Jerry & Dickey Gold Supporting Member

    Messages:
    39,481
    Joined:
    Jan 3, 2002
    Location:
    Northern VA
    Leo retired, too (though at first for health reasons and he, at least, came to regret his decision). Funny thing is he sold for around $11 million, too (of course, that $13M went much further then!).
     
  8. Schweezly

    Schweezly Member

    Messages:
    618
    Joined:
    Feb 10, 2014
    Location:
    Chicago area
    I hope not too much changes, but what can you do. Maybe it's time to finally order a hardtail Modern before it's too late
     
  9. '59_Standard

    '59_Standard Member

    Messages:
    544
    Joined:
    Jun 5, 2011
  10. JefeMaximo

    JefeMaximo Huge Member Silver Supporting Member

    Messages:
    2,389
    Joined:
    Sep 22, 2009
    Location:
    Boston
    I'll leave the financial machinations to others. I'll keep my eyes on the guitars, amps and pedals that are produced. That's all that really matters (at least to me).

    Happy owner of Suhr guitars and amps.
     
    Holliman and Route234 like this.
  11. Teleplayer

    Teleplayer New Mods On The Block Staff Member Gold Supporting Member

    Messages:
    19,227
    Joined:
    Jan 12, 2004
    That would be the equivalent of close to $30 million today, even at only 2% average inflation/year. Using a closer proximity to average annual inflation, the number is $45 - $50 million.

    Re: what Mark Cuban would do/say -- highly unlikely he would advocate a pink sheet/script deal for many reasons.
     
    tjontheroad likes this.
  12. BettyFjord

    BettyFjord Member

    Messages:
    552
    Joined:
    Sep 2, 2006
    Location:
    UK
  13. scott

    scott Member

    Messages:
    4,360
    Joined:
    Jan 31, 2002
    Location:
    Canada Eh?
    I think John probably has this under control guys.
    Lot of hand ringing going on here
     
    Route234 likes this.
  14. 57gold

    57gold Gold Supporting Member

    Messages:
    2,493
    Joined:
    Jul 12, 2004
    Location:
    Tampa
    Think you misread financials, amounts are in $s, not thousands?

    Way I read them, have one asset that is a start up that makes juice for those e cigarettes, whatever they are.

    Guessing they will add debt to finance acquisition on JST.
     
    plexigary likes this.
  15. bikeracr

    bikeracr Supporting Member

    Messages:
    801
    Joined:
    Mar 2, 2010
    Location:
    Indianapolis
    Yep. I saw the front end of that deal before things went south. Ben was in over his head with a couple of sharks.
     
  16. mapleneck72

    mapleneck72 Member

    Messages:
    968
    Joined:
    Mar 1, 2006
    Location:
    CA
    I hope everything works out for everyone at Suhr.
    It is strange to see a company with $15K quarterly revenue buying them.
     
  17. davidespinosa

    davidespinosa Supporting Member

    Messages:
    4,021
    Joined:
    Jul 10, 2007
    Location:
    Silicon Valley
    Why doesn't Fender or Yamaha or Line6 or Sweetwater buy them? Silicon Valley VCs have $11M in their personal bank accounts. "Hey honey, I bought a guitar company today!"
     
    binge likes this.
  18. itstooloudMike

    itstooloudMike Member

    Messages:
    2,390
    Joined:
    Sep 27, 2007
    Location:
    Knoxville, Tennessee
    I love my Suhr Classic-S, and have been very impressed by Suhr's focus on customer satisfaction and brand reputation. In a privately held company, the vision and goals can be whatever the owner wants them to be. In a publicly owned company (at least here in the USA), the primary goal will always be profitability. The impact of this ownership change may be slight in the short term, but there will be impact over the long term. And it's doubtful the change will result in better products or improved customer service. At least that's what my crystal ball predicts.
     
    freddyfeebleman likes this.
  19. nicolasrivera

    nicolasrivera Gold Supporting Member

    Messages:
    6,508
    Joined:
    Apr 5, 2010
    Location:
    Honduras
    Cant wait to see the new Avalanche prototypes and the new Logo!
     
  20. DaveNJ

    DaveNJ Supporting Member

    Messages:
    1,422
    Joined:
    Dec 6, 2006
    Location:
    Manalapan, NJ
    Psyched I have a pre-Avalanche Badger 30 & Reactive Load! Oh, the bragging I'll be doing in 2032!

    Kidding!@ Best of luck to everyone at Suhr!
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice