Ban the Semkos! :JEKYLHYDE

Generally, there are only two reasons to buy a competitor....

1) To kill them off after the purchase - take them out of the market.
2) To gain some type of value, i.e. additional manufacturing capacity, customer list, trademarks, etc.

I can see an individual company, someone like Superformance, doing it, but I cannot see a group of direct competitors doing it - there's no real value there.

I think Shelby owns the all trademarks, (less the Cobra trademark), not SAI - so where is the value there?

The other side of the coin is, SAI may just die on it's own - so why not wait it out and see what happens. If Shelby had the capital to run the company on his own, he would not have had to bring in a partner (first at 60%, then late at 75% interest). I doubt that he has the cash now, although he made bring in another group of investors.

Would any body at Club Cobra pop in, say $100k a person to raise a couple million to get 75% of SAI? In this economy/market?

Will see what happens, I hope they can get the $$$ to stay in business, we would have nothing to argue about if SAI went under.

- Dan

Dan: One question as to this thread.

Why?

:JEKYLHYDE

Evan,
It seems only logical. We watched Lutz and Iaacoca perform a "reversal of fortune" with Ford and Chrysler and certainly the replica industry especially, with Superformances marketing abilities, a joint venture would revolutionize the industry to everyones benefit.
No malice intended. I wish I had access to 2 million to be in the middle of the transition.

...pure poppycock!

What are the odds that SAI is of any real concern to a corp. like Venture ,or that it has any solvency at all as an individual asset?

SAI could very well just be a flag ship company created in a time when money was hunting any prospect and may not have the "real" cash basis to be much more than a hobby corperation, especially when it is apparently front loaded with all the hands off management they seem to have.



I am in the bussiness of loaning money to entities in similar positions to that of SAI ,and I doubt very much , there is asset or immediate future business to justify a buyout at any where near the debt ratio currently encumbering their books...

But then I havn't heard any one even mention that SAI was going to be spun off.

I think the "other " merger rumour sonded a lot more plausible.

you are a bad man Semko ! and you have made me write bad things! I must be punished!

Oh. Sure. Superformance would do wonders for SAI if acquired.

First they would bludgeon it to death, burn the body and bury it.

:rolleyes:

I think the logical answer is Ford. It would be the equivalent of Chrysler buying AMC for the Jeep name and nothing more. Think of the marketing leverage they could obtain. They already have the historical connection. No privateer is going to win a bidding war with them, either. Buy the name and throw everything else, including the Cobra and Series 1, in the dumpster.

Hard to imagine a scenario where ANYBODY would buy SAI without Shelbys blessing. OK, so you purchase the right to use his name and likeness but I suspect that much of the business of SAI is the man himself. He is, if nothing else, a very sharp business man and well versed in marketing his name/likeness. Without his "blessing" I wouldn't touch SAI as an investment.

Ernie

Cal,
I think your logical choice would be the best if Ford wasn't experiencing it's own internal problems. Visteon has laid off several workers at it's Connersville plant and the internal speculation is currently that Ford is seriously entertaining moving its compresssor assembly operations to Mexico effectively closing two US plants. The Ford dealership here looks like it's under quarantine and the salesmen are happy to see ANYBODY new to talk with on the showroom floor.

Ron,
"Poppycock" ? Who has a better advertising campaign outside of SAI? Why do you think Shelby targeted SPF in a lawsuit that continues like the Energizer Bunny? Is there any manufacturer better funded? If this isn't a factor then why are CAV dealings
being established in South Africa directly across from the new Superformance factory? Coincidence ? I don't think so.

Ernie,
the operative word is "was". With all due respect, the man is 80 years old and the rules have changed. Consider this, do you understand teenagers now or the philosophy that the current college graduates will change professions, not employment, but actual career directions at least 3 times during their productive years? Ask Shelby how to operate a computer of even how to fine tune a Series 1 and I bet that you'll get a response similar to:
"That's what I hire others to do". Nothing wrong with that except it's costly!

Young vs Old (SB vs BB?)
 

Ha ha,,,,,,,,he may be 80, but I wouldn't write him off as "out dated" just yet! He recently managed to get a thread over 50 pages in length that grew like wild fire in HERE. And he don't even use a computer! Good? Bad? Well, it sure focused attention on SAI, and isn't that what advertising is all about?

,,,,,,age may be an advantage! Daily I am pressured by those young guns just out of college with SUPERB computer skills, looking for MY job! I can't wait to get them into a mechanical room filled with pumps and motors and chillers and such and intimidate the hell out of them! :LOL:

Ernie

So, How much money is involved in this transaction to buy out SAI from Venture? Any hard numbers?

Edley,
I haven't seen exact numbers but I've heard that Venture/ Larry Winget, had $15 million invested for their share in SAI. The question remains IF Venture Industries or Larry Winget personally invested the funds and if those funds were used to secure funding to remain solvent for the remainder of 2002.

Dan......

Carroll just called ! He said to say " Old Am I "? Exact words...I can still make sound business decisions at 80. Tell Dan I'll buy back his CSX for $50K, cause I've got a buyer that will pay $100K. :3DSMILE:

- Bill -

Dan...
 

...Ford will have no input into any Visteon decisions, they no longer own it. Visteon was "spun-off" a few years ago and has lost a great deal of the business they did for Ford. The wonders of competitive bidding....

FoMoCo needs SAI like a SARS victim needs pneumonia. There is no chance of the "Cobra" being a profit center in a company the size of Ford, the initeria and overhead would eat up any chance of profit. I am sure that DC/Dodge do not turn a real profit on the Viper, it is used as Shelbys were in the 60's-as a promotional means, no different than buying TV commercials but via a means that reaches a different market and customer profile. Ford will not turn a profit on the new GT yet they can justify it as a promotional expense. How much would the press coverage and magazine space have cost?

SAI would have much greater value if the Series 1 were more desireable and had a bigger impact in the market. As it is it is sort of a Morgan type car, some are really enamoured of it, others pay it no attention. Because the Cobra cannot be sold as a completed car due to regulations it will never make a real dent in the market the way a contemporary, certified car can. Plus if your product can not be sold by real dealers your market potentail is reduced. This is not a knock on many of the people who sell componet cars for SAi, Superformance and others, some are very sharp and some do a superb job of customer service. I would be pleased to have some of them deal with me. Some however are little removed form Bubba's Shadetree Auto Repair and Fillin' Station. Not the type of representation you want for an "upmarket" product.

I have been involved with some attempted start-up automotive operations and have seen PROPER marketing research to identify potential customers. I think most Vulture capitalists would laugh at the estimated Cobra market!


Rick:D :D

Bill,
He'll buy it back for $50k WOW, that's almost twice as much as I paid for it. I think I'll wait a few months. I may need some extra parts for our Superformance.:D Actually it REALly is a beautiful car. My wife enjoys being behind the wheel while I'm pulling her around the driveway with our ATV. She has the sound down pat!;)

Have to agree with Rick. The Cobra would be a "throwaway" for Ford. The Shelby name, however, is a whole different issue. Doesn't have the brand status of Coca-Cola but very valuable, nonetheless.

Dan: You paid $25K for your CSX. Where? I want to buy another at that price.

How about yours. I'll top CS's offer. I'll pay $51K. Will wire funds immediately upon receipt of title. Well? Deal?




:cool:

Evan,
I was offered "significantly" more the week after the CSX arrived.
Did I hear that you would offer $105k for the CSX and the additional runner package?;)

You REALly didn't pay much more than $51k for yours did you? Ooops I thought they were talking about some other owner when they were talking about having a party!:D Turk had even a better deal on his CSX because of some dealer trading.......hey I'm REALly sorry to be the one that had to break the bad news!

I'm into mine for the right price. Thank you.

Is your body glass or aluminum??