Z
-Zoli-
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- 20.04.2014
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Ein interessantes Beitrag von AVE. Von einem fragwürdig aufgebautes Gerät bis zum Ursachenforschung. Der Mann kann logisch denken was eigentlich ein rarität ist.
Aus der Kommentsektion was interessantes:
"
Doug Hanchard4 hónapja (szerkesztve)
AvE round #2 hits the cycle perfectly. Not only is the product junk, his analysis of the product and the company is accurate. Leveraged Buyout Offers (LBO's) continue to be used for any company trading on global Stock Exchanges, particularly the NYSE and NASDAQ. But Fortive might be playing the long game because of its spinout from its original parent, Danaher.
Without a doubt, loading the target company with finance debt is the easiest way to get Wall Street Banks to finance acquisitions without a credit review. Instead of getting a traditional bank loan, the company making the deal to buy a target simply goes to Wall Street and Hawks junk bond rated securities at Venture Capital groups and Investment Bankers to finance the deal with the target company as collateral.
Then, as AvE points out, the companies free cash flow is then legally drained by the company that bought the acquisition.
This is not a new financial technique. It's been used for decades. Tandy Corporation (Radio Shack) was an LBO - TWICE!! Dell Computer was an LBO and is barely alive.
Numerous Airlines, Railways, Electronics companies all used LBO's.
In 2008, Bell Canada came within hours of being acquired by completing a 95% financed LBO (backed by the Ontario Teachers Pension Fund no less... Along with KKR) that Canadian regulators balked at. The deal collapsed because some brilliant lawyer determined at the last minute, that the company would be over 75% leveraged after the deal closed. Even the banks (that have long term Bell Canada Bond debt) woke up and realized the risk of complete collapse of the company was likely.
AvE's prediction of Flukes future is a possibility. Mass layoff of its best engineers, off shore manufacturing and the hiring of cheap whizz kids MBA's running the marketing department for as long as the ride lasts.
Bluntly, before Fortive bought Fluke, the level of company debt was nowhere near what it is now. It's almost all finance (Bond) debt to buy the company in the first place. It may even include debt from other acquisitions such as Tektronix.
It is true, many plan to declare Chapter 11 sometime in the future and restart the company with a lower debt (that will be never repaid), take tax write-off, and do it all over again. And yes, it will remain listed on a Stock Exchange. Might not be the NYSE, but probably the Pink Sheets on NASDAQ after a few rounds of Chapter 11.
Because of the dilution of the Frank - Dodds Act, this kind of fraud will be legal for decades to come.
Fortive is a little different. It does have significant holdings worldwide in the tech sector. It's not a fly by night Corporation. When Danaher spun Fortive out as a specialty tech company, it needed to grow quickly with mass and volume to maintain low cost interest / liquidity markets. The reason; China.
There can be no doubt, Fortive plans to move most of it's product mfg to Shenzhen, which is already underway.
This is probably why Bond investors allowed a high debt level in the first place. It will own or subcontract suppliers like Foxconn to assemble their electronics because of the underlying belief that soldering PCB boards has become a commodity.
And truth be known, it has. AvE isn't far off when he stated marketing doesn't care about quality Engineering. It looks at cost of manufacturing and does the product deliver x,y and z. That's it. China is assembling testing equipment, meters and oscilloscopes in the hundreds of thousands for a fraction of the cost. Let's face it. When you can buy a Fluke meter at Walmart, you know the jig is up....
When Danaher bought Fluke in 1998, it didn't see the Chinese invasion coming. But it didn't take long to figure out 20 yrs later as margins dropped below double digits and sales flattened.
Fortive will probably survive and get debt contained. But in the meantime, Fluke quality is going to nosedive into the ground, literally.
"
Also das verstähe ich nicht ganz genau aber einige Teile betreffen auch viele europäische Firmen.
Kann jemand es kurz erklären was diese LBO-s sind?
Übrigens hat Dave Jones seit dem nicht gewagt das Gerät zu testen .
Aus der Kommentsektion was interessantes:
"
Doug Hanchard4 hónapja (szerkesztve)
AvE round #2 hits the cycle perfectly. Not only is the product junk, his analysis of the product and the company is accurate. Leveraged Buyout Offers (LBO's) continue to be used for any company trading on global Stock Exchanges, particularly the NYSE and NASDAQ. But Fortive might be playing the long game because of its spinout from its original parent, Danaher.
Without a doubt, loading the target company with finance debt is the easiest way to get Wall Street Banks to finance acquisitions without a credit review. Instead of getting a traditional bank loan, the company making the deal to buy a target simply goes to Wall Street and Hawks junk bond rated securities at Venture Capital groups and Investment Bankers to finance the deal with the target company as collateral.
Then, as AvE points out, the companies free cash flow is then legally drained by the company that bought the acquisition.
This is not a new financial technique. It's been used for decades. Tandy Corporation (Radio Shack) was an LBO - TWICE!! Dell Computer was an LBO and is barely alive.
Numerous Airlines, Railways, Electronics companies all used LBO's.
In 2008, Bell Canada came within hours of being acquired by completing a 95% financed LBO (backed by the Ontario Teachers Pension Fund no less... Along with KKR) that Canadian regulators balked at. The deal collapsed because some brilliant lawyer determined at the last minute, that the company would be over 75% leveraged after the deal closed. Even the banks (that have long term Bell Canada Bond debt) woke up and realized the risk of complete collapse of the company was likely.
AvE's prediction of Flukes future is a possibility. Mass layoff of its best engineers, off shore manufacturing and the hiring of cheap whizz kids MBA's running the marketing department for as long as the ride lasts.
Bluntly, before Fortive bought Fluke, the level of company debt was nowhere near what it is now. It's almost all finance (Bond) debt to buy the company in the first place. It may even include debt from other acquisitions such as Tektronix.
It is true, many plan to declare Chapter 11 sometime in the future and restart the company with a lower debt (that will be never repaid), take tax write-off, and do it all over again. And yes, it will remain listed on a Stock Exchange. Might not be the NYSE, but probably the Pink Sheets on NASDAQ after a few rounds of Chapter 11.
Because of the dilution of the Frank - Dodds Act, this kind of fraud will be legal for decades to come.
Fortive is a little different. It does have significant holdings worldwide in the tech sector. It's not a fly by night Corporation. When Danaher spun Fortive out as a specialty tech company, it needed to grow quickly with mass and volume to maintain low cost interest / liquidity markets. The reason; China.
There can be no doubt, Fortive plans to move most of it's product mfg to Shenzhen, which is already underway.
This is probably why Bond investors allowed a high debt level in the first place. It will own or subcontract suppliers like Foxconn to assemble their electronics because of the underlying belief that soldering PCB boards has become a commodity.
And truth be known, it has. AvE isn't far off when he stated marketing doesn't care about quality Engineering. It looks at cost of manufacturing and does the product deliver x,y and z. That's it. China is assembling testing equipment, meters and oscilloscopes in the hundreds of thousands for a fraction of the cost. Let's face it. When you can buy a Fluke meter at Walmart, you know the jig is up....
When Danaher bought Fluke in 1998, it didn't see the Chinese invasion coming. But it didn't take long to figure out 20 yrs later as margins dropped below double digits and sales flattened.
Fortive will probably survive and get debt contained. But in the meantime, Fluke quality is going to nosedive into the ground, literally.
"
Also das verstähe ich nicht ganz genau aber einige Teile betreffen auch viele europäische Firmen.
Kann jemand es kurz erklären was diese LBO-s sind?
Übrigens hat Dave Jones seit dem nicht gewagt das Gerät zu testen .