Talk about a knee-jerk reaction. I guess they are seeing the writing on the wal...a high probability of the AWB coming into effect again.

 

http://cnnmon.ie/Wm6k1z

 

Not good in general for US firearm manufacturers. Their stocks have been taking a beating in the aftermath of this tragedy.

Cerberus is selling its investment in Freedom Group which owns Remington®, Bushmaster® Firearms, DPMS/Panther Arms™, Marlin®, H&R®, The Parker Gun™, Mountain Khakis®, Advanced Armament Corp. ®, Dakota Arms®, Para™ USA and Barnes® Bullets after the California State Teachers' Retirement System said it was reviewing its pension fund investment in Cerberus

I wouldn't call it a knee jerk reaction. When you run a private equity firm and your investors call you up and say, "we want our money back, we don't want to be investing in firearms" you have to make the decision that is going to keep your company in business, keep your employees insured and employed.

^{Take a look at SWHC, earning will be great and semi-autos are not the biggest part of their biz. If anything in a worse case scenerio revolvers will be the only game in town.}

They bought up those companies with the plan of turning over a profit by combining common aspects of the businesses within the conglomerate and eliminating the resulting redundancies. Their business plan was not as profitable as they planned -- they could not make it work -- and so they are dissolving the conglomerate. This has nothing to do with recent events.

 

It should also be noted that the California teacher's pension fund was aware of where there money was invested prior to recent events.

 

Hell, according to liberal logic the teachers were complicit in the murder of those 20 children. Pension funds should be banned, the teachers should be jailed and all financial investments should be limited to $10 per recipient.

They bought up those companies with the plan of turning over a profit by combining common aspects of the businesses within the conglomerate and eliminating the resulting redundancies. Their business plan was not as profitable as they planned -- they could not make it work -- and so they are dissolving the conglomerate. This has nothing to do with recent events.

 

I can say with certainty you are incorrect. That being said, if Cerberus is successful in selling off the Freedom Group, whether whole or in pieces, they will profit nicely.

When Freedom Group acquired Remington some years ago, they assumed $252 million of Remington's debt. A NYTimes article last year estimated that Freedom Group had grown the debt to almost half a billion.

 

Their QC with Remington products, along with the butchering of Marlin and Bushmaster have not made them more profitable. I think pressure from the CA Teacher's Pension made them cave in.

 

 

It was Cerberus who purchased failing Chrysler, hoping to turn them around and eventually sold them.

I can say with certainty you are incorrect. That being said, if Cerberus is successful in selling off the Freedom Group, whether whole or in pieces, they will profit nicely.

 

Incorrect about forming a conglomerate in an attempt to eliminate redundancy and generating a profit or incorrect that this has nothing to do with recent events?

Incorrect about forming a conglomerate in an attempt to eliminate redundancy and generating a profit or incorrect that this has nothing to do with recent events?

 

I'm not sure about the efficiency aspect but you are incorrect that they aren't generating profit from the Freedom Group and incorrect that the sale has nothing to do with recent events.

When Freedom Group acquired Remington some years ago, they assumed $252 million of Remington's debt. A NYTimes article last year estimated that Freedom Group had grown the debt to almost half a billion.

 

Their QC with Remington products, along with the butchering of Marlin and Bushmaster have not made them more profitable. I think pressure from the CA Teacher's Pension made them cave in.

 

It was Cerberus who purchased failing Chrysler, hoping to turn them around and eventually sold them.

 

And all said and done they made money on the Chrysler deal.

When Freedom Group acquired Remington some years ago, they assumed $252 million of Remington's debt. A NYTimes article last year estimated that Freedom Group had grown the debt to almost half a billion.

The modern American way!!

I'm not sure about the efficiency aspect but you are incorrect that they aren't generating profit from the Freedom Group and incorrect that the sale has nothing to do with recent events.

 

Fair enough. Here's my opinion.. Yes they were making profit on sales in the short term but there is the outstanding debt. That combined with gutting all the companies and moving their manufacturing operations to old substandard Remington plants seems like an attempt to make a short term profit at the expense of all else. Holding the Freedom Group upside down and shaking them down for every last penny doesn't seem like the plan for a long term investment for Cerberus. They needed to dump the Freedom Group before that catches up with them. Their options were then to dump the Freedom Group either by selling it privately or taking it public via IPO. I suspect they have been looking to dump it privately since they pulled out of their attempt to go public last year (perhaps their sales profits weren't good enough to detract from the gutted interior). What a good opportunity recent events have provided to get rid of Freedom Group without the investers crying foul on a seemingly profitable investment.

Fair enough. Here's my opinion.. Yes they were making profit on sales in the short term but there is the outstanding debt. That combined with gutting all the companies and moving their manufacturing operations to old substandard Remington plants seems like an attempt to make a short term profit at the expense of all else. Holding the Freedom Group upside down and shaking them down for every last penny doesn't seem like the plan for a long term investment for Cerberus. They needed to dump the Freedom Group before that catches up with them. Their options were then to dump the Freedom Group either by selling it privately or taking it public via IPO. I suspect they have been looking to dump it privately since they pulled out of their attempt to go public last year (perhaps their sales profits weren't good enough to detract from the gutted interior). What a good opportunity to get rid of Freedom Group without the investers crying foul on a seemingly profitable investment.

 

Perfectly logical thought process, it is an investment firm after all and it's main concern is making money for it's investors. However, dumping a flagship holding that the company sees as it's pride and joy when the company specializes in debt restructuring and distressed assets doesn't add up. Especially since that portfolio company is actively acquiring more companies, such as TAPCO. It is far more likely that the company is looking to divest because of pressure from investors. Also, let's not forget that Cerberus is a privately owned company based in NYC. Many of it's employees live in CT, some possibly being affected by this on a personal level. It is also being reported that the father of the owner of Cerberus lives in Newtown.

And all said and done they made money on the Chrysler deal.

 

Cerberus did not make money on the deal. They broke close to almost even. http://www.finaltern....com/node/15004

Cerberus did not make money on the deal. They broke close to almost even. http://www.finaltern....com/node/15004

 

I don't think that article is taking into account profit from operation of some of the financial components. Not to mention it's two years old, many deals have been made since that time that included other GM assets kept by Cerberus. Notably, in April of 2011 TD gave Cerberus 6.3 bil for some of Chrysler Financial. It wasn't a "winner" by any stretch but it wasn't exactly a loser". Cerberus still maintains assets from the deal and at this date are ahead (having made back more than the 7.4 bil initial investment into GM).

Perfectly logical thought process, it is an investment firm after all and it's main concern is making money for it's investors. However, dumping a flagship holding that the company sees as it's pride and joy when the company specializes in debt restructuring and distressed assets doesn't add up. Especially since that portfolio company is actively acquiring more companies, such as TAPCO. It is far more likely that the company is looking to divest because of pressure from investors. Also, let's not forget that Cerberus is a privately owned company based in NYC. Many of it's employees live in CT, some possibly being affected by this on a personal level. It is also being reported that the father of the owner of Cerberus lives in Newtown.

 

Interesting, good point about Tapco

 

There's also the conspiracy theorist's explanation -- an anti-gun mastermind at the helm of Cerberus is secretly using investor's cash to systematically acquire and irreparably destroy firearm companies from the inside out. I kid of course

Interesting, good point about Tapco

 

There's also the conspiracy theorist's explanation -- an anti-gun mastermind at the helm of Cerberus is secretly using investor's cash to systematically acquire and irreparably destroy firearm companies from the inside out. I kid of course

 

LOL, I was like, "not this again" until I got to the end.