Yesterday's announcement of Samson acquiring a bigger stake seems to be nothing more than getting all the shares under one name. Back in October it was announced that Samson purchased 14.9% of the FBN shares. In this latest release is said Samson owned less than a million. Quick math says that all these shares were parts of the 14.9% similar to the way Disney bought up acreage in Orlando under different names. So am I correct that the market responded to a name transfer only? The good news here might be that perhaps Samson is finally getting ready to take this thing over and fially make something happen because the current people are not up to it.
Some very smart people have lost their a$$ trying to pick the bottom in furniture stocks, MLF Partners lost millions recently playing LZB. Samson is a great furniture manufacturere but MAYBE a lousy market forecaster. This indusrty is in a "perfect storm" environment of a cyclical econimic downturn, a secular downturn in housing that may last a decade, a move to a complete import model, a reduction on brand awareness, and easy entry for new market participants. Many of the existing player ( including FBN) may become irrelevant. Samson may be throwing good furniture $ after bad$
I think they were a lot more optimistic about the business than was warranted. Perhaps they bought into Hank Paulson's "all is well" chant before he recently changed it to "oh fuck". Let's see some open market purchases by insiders in 2008. I do think a trade-able bottom went in, but I would use any bounce to get out if I was long.
I think you are correct, that Samson is just consolidating their position. Sounds to me as if they are preparing to have a seat at the table for when they need it. If they are considering a takeover (friendly or hostile), it will be at far more distressed prices.
Well, apperntly this was the correct analysis. The trade paper made the announcement this week and all the chatter about Samsom purchasing more and the subsequent jump in the stock price was caused by nothing. I agree, Samson is putting all his shares in one name and it must be about the time that they are going to go for a seat on the board. The industry hopes this is the case because the current board seems to have basically rubber stamped everything MH wanted and look where they are now. The new man at the top is ill equipped to make any changes and the industy is now waiting for either Samson to take over or for the entire mess to split up.