Kimball is a risky investment. Kimball is divided into furniture and electronics. It is a mix like oil and water. Kimball is unfocused and does nether electronics or furniture well.
Kimball furniture was popular as a “Brady Bunch” style furniture. It regained a short lived popularity for a while. It has morphed into furniture which fits the style of “San Francisco” but not mainstream America ***if you know what I mean***.
Electronics have been plagued by occasional recalls and delays. Kimball does electronics or furniture “OK” but does neither well.
SteelCase has toyed with the idea of buying them off several times. SteelCase has indicated it would sell off the electronics division, close and sell the management facility and use the manufacturing to build their more main stream American furniture.
SteelCase has been ridding the fence on purchasing Kimball. Kimball is no threat to SteelCase so it would have to be a “good deal” and at the “right time” for them to do so. Nonetheless it is always in the back of their head how easy tit would be to remove the ”annoyance”.
Kimball is weak but has sold assets and made many lay offs over the years to look strong. Kimball sold it’s prized “forest” to make it through the recession; and they are still struggling; especially with the high end family management salaries. But on the surface, all of their asset sell off has made them look “descent”.
Kimball even sold off their prized piano for cash, which is the last piano they ever made. That is huge from a standpoint that they would gladly sell their heritage for a few bucks to pay high executive salaries.
This sell off has shored up their balance sheets but they are soon to run out of steam. Kimball stock has gained a false bump when Obama and Bernanke printed more money to buy mortgage loans but so did all stocks.
Kimball has been dropped from a number of mutual funds who are paying attention and their outlook is extremely poor. As the elderly family in charge at Kimball slows down, clueless siblings and in-laws try to make their mark showing they are indeed….clueless! (but well paid).
Kimball is unfocussed with furniture and electronics. It is like selling groceries at a lingerie shop.
Kimball also knows that if they sell off the electronics to a company who knows how to do electronics, they will be a prime target to be taken out or bought out by SteelCase. Kimballs lectronics division may be what is stopping SteelCase from taking them over or burring them so Kimball knows their survival depends on remaining divided and mediocre.
Kimball is in a real pickle and I don’t see them doing anything worthy for some time to come; if ever.
I have done very well with SteelCase stock. Sell Kimball while they got a bump from the Feds infusion of money.