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Cobra Electronics Anonim Ortaklık Message Board

  • tesiman tesiman Jun 19, 2008 12:03 PM Flag

    Double whammy

    I will speculate that COBR's fortunes will not improve in the near future. The consumer electronic market for COBR's line of radios is so saturated and the demand is dropping. Innovations in the marine radio applications are too little and too late. Performance Products has been, and will continue to be, a bad acquistion.

    NAVOne 4500 "sells" for $500 (down from a list price of $1000) at Best Buy but also is listed at $234 at Overstock.com for a refurbushed unit. Either way, with TomTom, Mio, Magellan and Garman now engaging in a brutal price war, is it possible for COBR to expect to sell any units?

    I am still not motivated to buy COBR stock at these new low price levels. Matter of fact, I would be surprised if COBR can be profitable in the near future. On the other hand, it might be ripe for a takeover since the "COBRA" name still has some market value.

    Just my 2 cents. Clearly, I have never been a fan of present management. They took a good company and deviated from the business model. Mobile gps has been a disaster and the company refuses to accept reality and exit this area.

    Disclosure- I do not hold any stock nor am I short.

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    • WOW

      Its been a few years since I bought and sold this stock (around $9/shares, round trip. Amazing fall in value. Back when I looked at this, some senior exec passed away and Cobra received significant dollars. Appears they did something wrong over the last few years

    • June 18, 2008- stock was trading at $2.74
      July 18, 2008- stock is trading at $2.04

    • You have been absolutely correct on this company for a long time and I compliment you for that.Nevertheless,I am a buyer of the stock here.There is almost always a point at which virtually all the negatives have been priced into a stock and I believe this one more than qualifies.
      Very simply,I see COBR as a value/margin play--now selling at a mere 11% of sales and 27% of book value. With most of its losers now written off [or will likely be by yearend]I see no reason why,in an improved economy--say in 2009,they can't earn net margins of at least 5%. PPL alone has high gross margins and appears to have turned the corner--that alone could give them decent earnings next year.
      5% of $155mm sales divided by a mere 6.5 mm shares would give them possible eps of about $1.20---valuing that at a conservative 10x eps would yield a stock price 4-5x current levels. Of course, this is all very hypothetical but where is the downside here?

      • 1 Reply to Lexus10k
      • The problem is that COBR's balance sheet has deteriorated significantly. The stock dilution and debt assumption tied in with the Performance acquisition killed any chance of a turn around.

        COBR is running on one cylinder. I doubt that there is any segment of COBR's market that is doing well or , for that matter, even marginally profitable.

        I have followed COBR for many years. Quite candidly, I think that senior management has run this company into the ground. Watch for the next earnings announcement:"COBR has .25+ loss on inventory write downs and slowing economy bla bla bla".

        Good luck.

    • Correction-

      I just saw a refurbushed NavOne 4500 listed at "Saletronics" for $199.

      There surely more resellers selling refurbished models then new models. At what price does COBR unload the used units to the resellers?

      Can you say "losing your pants"? Only in America is senior management paid for bad performance.