Colt Holding Company (Colt) and subsidiary Colt Canada Corporation are being acquired by Česká zbrojovka Group (CZG), owners of CZ-USA.
A Colt press releases says “CZG shall acquire a 100% stake in Colt for upfront cash consideration of $220 million and the issuance of 1,098,620 shares of newly issued CZG common stock.”
The owners of Colt are gambling that Bribe'em and The Ho are going to put firearm manufacturers out of business. Otherwise, why would you sell any company that just cannot keep up with product demand? The smart answer is 'If they're buying all we build at full price, let's add more capacity and sell more product' I think that someone high up the good chain has a lot of faith in the demonrats plans...
Colt has not made quality product in decades. Shit management, with pie in the sky government contracts went bye-bye. I have owned Colt AR15 (SP1), Diamondback and series 70 Colt Government Model. CZ bought Dan Wesson, the pistols are superior to Colts, The 715 revolver is superior to original,which was and is Superior to the Python. Perhaps allowing a company in gun business might greatly improve Colt. I really hope so.
Fred, that's certainly one possible answer but it's not necessarily "the smart answer". Perhaps a better answer might be 'If they're buying all we build at full price, let's maintain current capacity to avoid overbuilding, keep prices high, potentially raise prices, continue to sell all of our product, avoid capital outlay, maintain a cash cushion, and use the difference to give ourselves a big raise.'
In other words, your solution is to maximize profit in the near term, but sometimes it makes more sense to optimize profit over the long term, while reducing risks to the business. The focus on quarterly profits over long term prospects is one of the main things that has negatively impacted our economy over the past few decades.
You ask "Otherwise, why would you sell any company that just cannot keep up with product demand?" 1. Sell for top dollar while demand is high, if you expect future demand to fall. 2. Ready to retire and cash out. 3. Found an even better business opportunity and need the cash in order to capitalize on it. 4. Found a buyer willing to pay a significant premium over your own estimate of your company's valuation. 5. Etc. or perhaps the most likely answer of all 6. Avoid potential regulatory hassles that you expect to negatively impact future prospects for the business.
You know, sometimes I'm out hunting during the week and really enjoying myself, and there's no particular need to return home, but I force myself stop and leave anyway while things are good, maybe to avoid weekend crowds or maybe to avoid the threat of inclement weather ahead.
Hopefully CZ can help Colts quality control team get their shit together, and also get whoever sets Colts prices to quit huffing glue while eating paint chips topped with crack.
It is true that "quality makes it a Colt" but they're also known for stagnation whilst other outfits come in and bleed their markets dry. Examples would be the single action revolvers, the AR-15/M16/M4, the 1911, 22-auto pistols and double-action revolvers. Here's how that happens. This guy here started Ultralight Arms, then sold it to Colt who proceeded to eff it up beyond all recognition, so he started a new company:
https://newultralightarms.com/?page_id=16
Catchy name, I wonder how he thought of it heh-heh.
After the new company got going, he was interviewed in Precision Shooting magazine (R.I.P.) about the new venture and was asked about what happened at Colt.
He said the bottom line was, when the people who ran Colt came to work on Monday morning, all they talked about was playing golf or doing something else over the weekend. None of them had been out hunting or shooting. None of them hunted or were sports shooters. None.
He went on to say that if you expect to be a success at running a gun company, you have to be a gun guy, and nobody at Colt was a gun guy. It's worth noting that none of Forbes's guns are low-priced...….
And, there you have it. I think that very simply explains why CZ, Henry and Ruger and others have prospered while Colt, Remington and Marlin have had difficulties. You will recall when S&W sold out to HUD, and how they fought their way back after a management change. They weren't being run by gun guys, and then they were.
CZ is a good company, smartly run. Wonder what they know....or think they know. With Joe and the Ho running things, investing in the American firearms industry currently is a risky proposition at best.
They'll always be able to sell American made guns internationally, as long as no stinking American citizens can buy them; Joe and the Ho will leave them alone.
Love my CZ’s, love my Colts!
ReplyDeletePaul J
And stock price is just over $17 a share as of now.
ReplyDeleteMaybe they'll make some good stuff again.
ReplyDeleteRecent convert to CZ's here. Wonderful guns.
ReplyDeleteThe owners of Colt are gambling that Bribe'em and The Ho are going to put firearm manufacturers out of business. Otherwise, why would you sell any company that just cannot keep up with product demand? The smart answer is 'If they're buying all we build at full price, let's add more capacity and sell more product'
ReplyDeleteI think that someone high up the good chain has a lot of faith in the demonrats plans...
Colt has'nt made anything good in years. Overpriced mediocrity. Love my CZ's though.
DeleteHow many Colts have you shot on a regular basis in those years?
DeleteColt has not made quality product in decades. Shit management, with pie in the sky government contracts went bye-bye.
DeleteI have owned Colt AR15 (SP1), Diamondback and series 70 Colt Government Model.
CZ bought Dan Wesson, the pistols are superior to Colts, The 715 revolver is superior to original,which was and is Superior to the Python.
Perhaps allowing a company in gun business might greatly improve Colt. I really hope so.
Fred, that's certainly one possible answer but it's not necessarily "the smart answer". Perhaps a better answer might be
Delete'If they're buying all we build at full price, let's maintain current capacity to avoid overbuilding, keep prices high, potentially raise prices, continue to sell all of our product, avoid capital outlay, maintain a cash cushion, and use the difference to give ourselves a big raise.'
In other words, your solution is to maximize profit in the near term, but sometimes it makes more sense to optimize profit over the long term, while reducing risks to the business. The focus on quarterly profits over long term prospects is one of the main things that has negatively impacted our economy over the past few decades.
You ask "Otherwise, why would you sell any company that just cannot keep up with product demand?"
1. Sell for top dollar while demand is high, if you expect future demand to fall.
2. Ready to retire and cash out.
3. Found an even better business opportunity and need the cash in order to capitalize on it.
4. Found a buyer willing to pay a significant premium over your own estimate of your company's valuation.
5. Etc.
or perhaps the most likely answer of all
6. Avoid potential regulatory hassles that you expect to negatively impact future prospects for the business.
You know, sometimes I'm out hunting during the week and really enjoying myself, and there's no particular need to return home, but I force myself stop and leave anyway while things are good, maybe to avoid weekend crowds or maybe to avoid the threat of inclement weather ahead.
Hopefully CZ can help Colts quality control team get their shit together, and also get whoever sets Colts prices to quit huffing glue while eating paint chips topped with crack.
ReplyDeleteI've got a 2 year old Colt Defender that runs like a champ. Never had any kind of issue with it from Day One.
DeleteAnd you get what you pay for.
I have a 4 year old Government model in 9mm that has been the great.
ReplyDeleteIt is true that "quality makes it a Colt" but they're also known for stagnation whilst other outfits come in and bleed their markets dry. Examples would be the single action revolvers, the AR-15/M16/M4, the 1911, 22-auto pistols and double-action revolvers. Here's how that happens. This guy here started Ultralight Arms, then sold it to Colt who proceeded to eff it up beyond all recognition, so he started a new company:
ReplyDeletehttps://newultralightarms.com/?page_id=16
Catchy name, I wonder how he thought of it heh-heh.
After the new company got going, he was interviewed in Precision Shooting magazine (R.I.P.) about the new venture and was asked about what happened at Colt.
He said the bottom line was, when the people who ran Colt came to work on Monday morning, all they talked about was playing golf or doing something else over the weekend. None of them had been out hunting or shooting. None of them hunted or were sports shooters. None.
He went on to say that if you expect to be a success at running a gun company, you have to be a gun guy, and nobody at Colt was a gun guy. It's worth noting that none of Forbes's guns are low-priced...….
And, there you have it. I think that very simply explains why CZ, Henry and Ruger and others have prospered while Colt, Remington and Marlin have had difficulties. You will recall when S&W sold out to HUD, and how they fought their way back after a management change. They weren't being run by gun guys, and then they were.
CZ is a good company, smartly run. Wonder what they know....or think they know. With Joe and the Ho running things, investing in the American firearms industry currently is a risky proposition at best.
ReplyDeleteThey'll always be able to sell American made guns internationally, as long as no stinking American citizens can buy them; Joe and the Ho will leave them alone.
Delete