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Compass Diversified Holdings Message Board

  • runssimba runssimba Oct 10, 2011 4:06 PM Flag

    camelback is more like a

    camelback is more like a camel on the back. The market hates this deal! the dow is up 1,000 in 4 days, codi would be at 14 without that huge camel on the back of the stock. 250 million for a company doing 125 million in sales and less that 15 million in hard assets. They can't even place the debt. I mean whats the hold up?

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    • You're reading the market wrong. The recent price drop in CODI has everything to do with the general (risky) state of the economy, and nothing to do with Camelbak. Camelbak is an excellent company with an excellent product in an excellent sector. True, it's a very competitive business, but fitness products are where it's at right now. Compare to the furniture company they bought (and were forced to write off), which was a real dog. CODI will advance with the rest of the company. The price movements of CODI are leveraged to the rest of the economy because of the credit risk involved in their business. CODI isn't like a DOW blue chip which can ride out any economic crisis; that's why it's trading at a discount and pays such a high dividend. The risk factor is exactly why CODI is a good investment. The market is paranoid right now, and CODI is on sale. The fact that CODI survived the great recession already speaks volumes. And imo, CODI is positioned better now than it was then.

    • I tend to agree.The market does not seem to like this deal and they may well have overpayed.There does not appear to be any thing here that would justify paying 2 times sale for this company.I would like to hear from someone with a different view.

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