Martin and Ian now straddle the greatest collection of small appliances known to man and will use their power to force Walmart, Costco, and China to bow and sell blenders for $100 creating unbelievable EBITDA margins and more pain for shorts and $100 stock!!!!!
Speaking of debt to manage, does anybody know what is included in the $245 million in "other current liabilities" on their balance sheet? Along with the $330 million in "Other non-current liabilities"??
You have a good point with unbridled hope! This company has a great collection of brands. Also riding two very strong catagories, poker and food saver. Have a good mid price point grouping of brands in small appliances, Oster, Sunbeam, Rival. The consumer still embraces these as quality brands at a fair price point. Regarding the power to force Walmart into higher price, no, Walmart can go around them. What they can do is work with Walmart to trade up their customers, which Walmart would like to do. $100 Blender, NO! $49.99 and little higher, maybe. My concern with this company, do they have the capital to work and grow these brands. They remind me of Salton five years ago, look where they are today! Will be interesting to following this company over the next several years to see where they head.
No doubt, this will go the way of Salton and Applica. These roll-ups, mergers, synergy bullshit does not work in these businesses/ industry. The best of them were Newell and Rubbermaid, look waht happened to them. Martin Franklin is no better than Al Dunlap, the Warburg preferred/equity saved him from a sure bankruptcy sooner. Will eventiually go towards that.
Thank you for your insight. I researched Jardens competition and the nearest one is doing poorly/ a three dollar stock with slower sales. Warren Buffet believes in Name Brands and so do most americans. Home Depot is going to sell Korean washers and dryers...good luck I'll stick with Kenmore, whirlpool...this company is really a little mutual fund with great managers...And there is nothing wrong with a little hussle and salesmanship,,,and these guys know it...texas hold em anyone...a couple of decks and a few chips for 70 bucks...I love it