If You Were Gibson CEO For One Day

[Izzy]

Privately held, there is no stock. Publicly traded guitar companies don't work so good.

 

rct

 

Private as in a few people own it?

 

But seriously, why doesn't it work well for guitar companies to be public? :unsure:

[badbluesplayer]

Privately held, there is no stock. Publicly traded guitar companies don't work so good.

 

rct

Henry's hoarding all the stock certificates in his desk somewhere. Maybe in the bottom drawer. Izzy can steal a few and hand 'em out to us.

 

 

I'm heading to the mill to cut up some boards and stuff!

[rct]

Private as in a few people own it?

 

But seriously, why doesn't it work well for guitar companies to be public? :unsure:

 

Generally speaking, very broadly here, a privately held company tends to focus on doing something and absorbing whatever losses come with that doing of something.

 

A publicly traded company generally speaking has a consequence that most of the time has nothing to do with what they do, and that is the stock price.

 

Stock is a Ponzi scheme that requires money to make money. If you put in a dollar, you generally get small multiples of a dollar back. If you put in a few million, you generally get small multiples of a few mil back, which is a lot of money. So the stock thing is a game of its own, and has nothing to do with what the company does.

 

CBS pretty much wrote the book on publicly traded companies, even inter-related ones like Columbia Records and a guitar making business, don't work when the greatest consequence of all of it is in some market somewhere where rich guys like to get richer. If they can't play with your equity enough to make vast sums of money for a few people, your equity vaporizes and you are forced to sell out or bankrupt yourself.

 

Making guitars in and of itself seems to work, and I say seems because private companies are not required to reveal anything about their finances. Fedner is in bad shape as far as debt to equity, they are way too far in debt, that's why they failed miserably at the recent IPO they talked of. Remember, the general outcome of the IPO is that the few people running the company get vastly wealthy and the people that work there will definitely be able to retire at least.

 

Making guitars doesn't overcome failed market equity, it can't absorb that kind of financial negative. Lots of things, particularly hand made or highly selective processes like Swarovski, generally can't absorb the financial d1cking around that goes with public trading.

 

There you have it, old bitter guy explains the stock market.

 

rct

[daveinspain]

Never bought stocks in my life and doubt I ever will because something deep inside me has always told me that what rct say is the way it is...

[capmaster]

Generally speaking, very broadly here, a privately held company tends to focus on doing something and absorbing whatever losses come with that doing of something.

 

A publicly traded company generally speaking has a consequence that most of the time has nothing to do with what they do, and that is the stock price.

 

Stock is a Ponzi scheme that requires money to make money. If you put in a dollar, you generally get small multiples of a dollar back. If you put in a few million, you generally get small multiples of a few mil back, which is a lot of money. So the stock thing is a game of its own, and has nothing to do with what the company does.

 

CBS pretty much wrote the book on publicly traded companies, even inter-related ones like Columbia Records and a guitar making business, don't work when the greatest consequence of all of it is in some market somewhere where rich guys like to get richer. If they can't play with your equity enough to make vast sums of money for a few people, your equity vaporizes and you are forced to sell out or bankrupt yourself.

 

Making guitars in and of itself seems to work, and I say seems because private companies are not required to reveal anything about their finances. Fedner is in bad shape as far as debt to equity, they are way too far in debt, that's why they failed miserably at the recent IPO they talked of. Remember, the general outcome of the IPO is that the few people running the company get vastly wealthy and the people that work there will definitely be able to retire at least.

 

Making guitars doesn't overcome failed market equity, it can't absorb that kind of financial negative. Lots of things, particularly hand made or highly selective processes like Swarovski, generally can't absorb the financial d1cking around that goes with public trading.

 

There you have it, old bitter guy explains the stock market.

 

rct

In fact, it's not necessary being old, bitter or a guy to give an explanation like you did. It's sufficient being realistic.

[Whitehall]

I would reduce the number of Les Paul models by 1/2.there are way too many and the names no longer make any sense. I would add lefty explorers and more lefties in general. I would get rid of most of the crapola tribute series and instead would re do the Epiphone line. I would give the Epi's the open book headstock and nitro finishes. Oh, and if would get some decent t shirts.