Discussion in 'Guitars in General' started by ChazMania, Jun 17, 2015.
I've said my piece. My best to Suhr and its employees.
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.
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.
Wow! I never intended to start a TGP 101 financial course
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?
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
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.
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!).
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
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.
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.
I think John probably has this under control guys.
Lot of hand ringing going on here
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.
Yep. I saw the front end of that deal before things went south. Ben was in over his head with a couple of sharks.
I hope everything works out for everyone at Suhr.
It is strange to see a company with $15K quarterly revenue buying them.
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!"
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.
Cant wait to see the new Avalanche prototypes and the new Logo!
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!