Posted on 05/16/2015 8:36:06 AM PDT by Olog-hai
Cerberus Capital Management LP told its investors Friday that it has created an avenue for them to sell their stakes in a gun maker that the private-equity firm has been under pressure to divest since the Sandy Hook school shooting in 2012.
Cerberus sent a letter to its investors, which include pension funds and endowments, telling them that it has separated Remington Outdoor Co., the maker of Remington and Bushmaster rifles formerly known as Freedom Group Inc., from its funds and will allow any investor wishing to cash out of the company to do so, according to a person familiar with the letter.
Remington will use the proceeds from a 2013 debt sale to pay investors who choose to divest their stakes, the person said.
Cerberus said in the letter that the company’s value, including debt, was about $880 million, the person said. …
(Excerpt) Read more at wsj.com ...
....whatever
Buy fusion firearms
Maybe you Olag can tell us the rest of story or what you think this all means.
Since you must register and sign in to read the rest of the story and there is not enough information here to determine what the bottom line is, what good is this thread I will say the following:
It may be wise to divest
It may not be wise to divest and it may be wise to invest
You read the story Olog what do you think?
Basically, Cerberus is hoplophobic to the point of irrationality, and has broken Remington out of their investment bundle so their equally irrational investors can sell it without affecting the rest of their portfolios. Sounds like a perfect buying opportunity to me; a chance to pick up a bunch of stock in an industry where failure almost has to be willful in order to happen, at fire sale prices.
In other news, Cerberus now owns both Safeway and Albertsons supermarket chains. And prices are going up up up while, at least at Safeway, quality is taking a nosedive.
Cerberus is mostly a good, conservative run company. They owned Chrysler for a brief period after Daimler raped the company of its $12 billion war-chest and decontented every vehicle in the lineup. Chrysler was on the right path to long-term survival when the collapse of 2008 took place.
Obama refused to extend loan guarantees to the American owners (Cerberus) and, instead, gave those guarantees and the company to Fiat Group.
The vehicles mostly redesigned under Cerberus are generating profits for the company while the Fiat side languishes.
This is further PROOF that when it comes to choose between what is good for the US, Obama will choose the opposite.
Many FReepers predicted Remmington, Marlin, etc would all be destroyed by Cerberus. I tried to tell them that the company was being positioned to be stronger than ever.
In this case, Cerberus is just allowing its investors to move their money where they want....a very capitalistic notion. A liberal management would not allow you to get out of holdings in a gay activist company.
Thank You:
Now the story is much more than a waste of space; it has a basis for thoughtful consideration.
My initial aggravation with the thread has been assuaged, I should of had a bit more patience knowing freepers always fill in the blanks.
BUMP!
IMHO, article behind paywalls should not be allowed on FR. Why give them the hits? At least post the URL in plain text so it has to cut and pasted to be used.
Well, sorry about that, but I was able to view the full article when I posted it. I didn’t want to post the NY Times (which the WSJ article referenced) or Reuters, who also wrote something on this subject. I’ll keep away from the WSJ next time.
Check this. Full text.
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