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Sturm, Ruger & Co. Inc. Message Board

  • puzzled48 puzzled48 Apr 9, 2013 9:28 PM Flag

    No progress in Cerberus sale of Freedom Group

    Cerberus claimed they would sell Freedom Group, aka Remington Outdoor Company, Inc, after the Newtown massacre. Who would ever buy this firearms manufacturing group?

    2012 Revenues: $931 million
    2012 Net income: $7.4 million

    Total assets: $831 million
    Total liabilities: $948 million
    Long term debt: $646 million
    Stockholder Deficit: ($117 millon)

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    • SWHC (last month) Filed a $250 Million Secondary as of yet not priced and I think that was filed with the intent to buy parts of Freedom Group.
      SWHC has only done 2 Secondaries in the past 14 or so years, the biggest just $50 million, ……so this is the BIG one.
      My position is and will be that SWHC will make an offering for whole or parts of Freedom and they will get a poor deal on whatever they buy. If you look at SWHC, and I mean really look....their magmnt. credentials are just horrific compared to RGR's.
      The BOD and Insiders are like the Key-Stone Cops. Go read some of their bios.
      The old CEO who almost made it go bankrupt with the last acquisition (Perimeter Security Fence Company) wrote off $85 million on a initial $50 Million acquisition. His name is Mike Golden, who just happened to write a 14 page book about his great effort to turn around SWHC; luckily the 14 pages were printed before the new buy went to heck.
      Anyways, Golden figures he better step aside so he goes and hires a Brittish guy who had NEVER fired a firearm in his life before his upcoming interview with SWHC......so he borrows a friends Ruger and goes into the woods. Not making this up.....search Debney interview for SWHC.....anyways (my opinion) Golden hires Debney to now be a "Yes" man and Golden to still run Company as his own little kingdom.

      The BOD od SWHC is involved with a couple Penny and Pink Stock listed Companies, nothing else with any stature. They're Penny Ante players in the Wall Street game.

      So the answer to all this is Golden HAS and Would overpay for anything to further boost his ego or line his pocket. Don't worry, Cerubus will take him to cleaners on the price.

    • Ruger FInancials:

      2012 Revenue:$491 mn
      2012 Net income:$70.6 mn
      Total assets:$174 million
      Total ST liabilities:$59 million
      Total LT debt: $0
      Stockholder equity: $95 million

      Revenue much less than Freedom Group, but no long-term debt, 10-fold greater profit, postive shareholder equity instead of negative.

    • Ruger's stockholders equity is only about $100 million (about $5.00 per share) yet the shares sell for about $50.00.

      If Cerberus could have taken Freedom public, that public would probably have paid them a huge profit. I'm sure Cerberus hopes they can entice some other private equity firm to buy it with the hope they can eventually take it public and reap much of that profit.

 
RGR
54.78Apr 20 4:02 PMEDT