Tue, Jan 27, 2015, 3:57 AM EST - U.S. Markets open in 5 hrs 33 mins


% | $
Quotes you view appear here for quick access.

Compass Diversified Holdings Message Board

  • stockmaster2002 stockmaster2002 Mar 18, 2011 10:57 AM Flag

    Reason for drop -- Heading to $10

    Here is the reason for the drop. Should go lower now. This article just came across on Google Finance today. The info was in the 10-K but main street is just reading the info.


    CODI had to invest an addition 50 million into American furniture and only picked up an addition 7% ownership. Not a great move for a company with only $136 million in sales on the decline.

    I will pick some up under $10.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The next paragraph shows what the 10K actually says about this(pg 107). They clearly didn't spend $50 million just for an adiitional 7% ownership but nice try at bashing this down. Also American Furniture only had $136 million in net sales out of $1.6 billion in total net sales for all of CODI. AMF alone can't bring this down to $10. AMF also would have had a positive income from operations of over $1 million if not for the impairment charge.

      On December 30, 2010, we entered into an amendment to our inter-company loan agreement with American Furniture wherein we contributed $50.7 million in additional equity contributions in exchange for the following:
      • $1.0 million in unpaid M=management fees;

      • $35.5 million in outstanding term loans; and

      • $14.2 million in outstanding revolving loans.

      As a result of this transaction, our ownership percentage of the outstanding common stock of American Furniture increased to approximately 99.9% on a primary basis and 91.4% on a fully diluted basis.

      • 2 Replies to M_Grice
      • You are missing the point, when CODI gave the 50 million- they did not give it to a selling shareholder they gave it to American Furnitutre. When they gave it to American Furniture, AMF was only worth $60 million. Now (after the extra 50 mil) it is worth $110 million. so CODI had 85% of 60mil (51 mil) now they have 92% of 110mil (101 mil) = no dilution.

        What they did with the money is another point but a good one to consider. AMF cash flowed 1 mil before- now after paying off 50 million in debt that was negativly impacting earnings by 4 million. it should cashflow 5 million. so CODI had 85% of 1 million in CAD, now they get 92% of 5mil in CAD. It also cleans up AMF to be divested-

    • bogus link.


    • I dont think you will see a price of $10 anytime soon.They just raised the distribution so i dont think the furniture company creates a serious problem for codi.The other company interests are doing quite well.

16.62+0.20(+1.22%)Jan 26 4:02 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Facebook, Inc.
NASDAQMon, Jan 26, 2015 4:00 PM EST
Microsoft Corporation
NASDAQMon, Jan 26, 2015 4:00 PM EST
NASDAQMon, Jan 26, 2015 4:00 PM EST