Carroll Shelby International csbi
 

I just happened to see an investor fact sheet with no date listing the stock at $4.85. Today the stock looks to be priced under $1.00 per share. The stock symbol is cbsi.



I just checked the charts that had the stock trading at $5.00 in March/April this year. With 12 million plus shares market cap has shrunk from 60 plus million to just over 12 million in 6 months.

From Carroll Shelby International's most recent filing with the SEC:

Liquidity and Capital Resources

Management believes its existing cash and cash equivalent of $112,445 and anticipated cash flows generated from operations will not be sufficient to fully execute its business plan. The Company will be required to raise additional funding through the issuance of additional debt or equity. In addition, the Company will have to successfully negotiate extended terms on the note due to its shareholder Carroll Shelby. If the Company is unable to do so, it may be required to cease operations.

Currently, the Company is dependent upon its majority shareholder or sales of its common stock to provide liquidity from any shortfall in cash provided by operations. If this shareholder was unable to provide funding for the Company or it were unable to raise additional equity capital, a resulting lack of capital could have a substantial adverse material impact on the Company and its operations.

The Company has not achieved profitable operations through June 30, 2004. It is not presently able to determine when profitable operations will be obtained. For the six months ended June 30, 2004 its private placement financing generated in the fourth quarter of 2003 and through out 2004 and increases in customer deposits (approximately $1,094,000) have financed operations through June 30, 2004. The Company has a cash balance of $112,445 at June 30, 2004. The Company also has substantial current liabilities due including $1.75 million due to its shareholder, $2.359 million of customer deposits to be "offset" when cars are completed and delivered and $340,665 of current maturities of its long term debt. The Company's balance sheet and financial position are not comparable between years because of the addition of the Cobra™ production operations.

Cash flows used in operations of approximately $17,141 for the six months ended June 30, 2003 and used in operations of $1,367,642 for the six months ended June 30, 2004. While not directly comparable, the decrease in cash resources for the six month period ended June 30, 2004 and 2003 is substantially related to resources applied to the Cobra™ production operations and specifically to acquiring and producing the inventory to support these operations.

Net cash provided by investing activities for the six months ended June 30, 2003 was approximately $757 as compared to cash used in investing activities of $263,093 for the six months ended June 30, 2004. This increase was primarily a result of the purchase of property and equipment associated with the start up



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of the Cobra™ production activities and the purchase of a truck and trailer.

The Company's financing activities for the six months ended June 30, 2003 provided cash resources of approximately $23,137 primarily related to shareholder advances offset by the payments on its tractor trailer note. For the six months ended June 30, 2004, financing activities used funds of $312,818. For the six months ended June 30, 2004 cash provided from financing activities consisted of funds received from the private placement offering of unregistered shares net of fees of approximately $1.3 million, issuance of a note payable to purchase a truck for approximately $172,000 offset by the repayment of shareholder notes of $1,730,000.

In August 2003, the Company retained an investment banker to provide, among other services, assistance with the Company's financing efforts as it attempts to secure additional capital for product development, possible acquisitions and working capital and to assist the Company with general business strategy and advice regarding listing on a national exchange. As of June 30, 2004 the Company has finished its first capital raise through the sale of its common shares. For the six months ended June 30, 2004 the Company raised capital through a private placement of unregistered common stock. The Company received approximately $1,300,000 of cash, net of fees, from the sale of approximately 680,000 shares of common stock at $2.25 per share.

The note due from the Company to Venture Mold and Engineering Corporation in connection with certain inventory relating to the Shelby Series 1 program is four months in arrears, but not in default under the agreement with Venture. The Company and Venture are in agreement with respect to the status of the note and the Security Agreement related thereto

On October 31, 2003, the Company announced it has entered into a letter of intent to acquire automotive supercharger developer and manufacturer Allen Engine Development Inc. This acquisition will be a combination of cash and equity and if completed, would provide an extended reach for the Shelby brand into the growing automotive aftermarket and performance parts market. In addition, if the Allen Engine Development acquisition is completed, it will give us depth in engineering services, which include research and development, CAD support, prototyping as well as full CNC machining services. There can be no assurance that this acquisition will be completed.

The Company believes that inflation has not had a material impact on it operations

Unreal, who's runnin' the sho over there anyway?( and stealin' all the money?) Sounds like they're loaded with $high$ paid upper management ,with a handfull of grunts doing all the real work. So simple, lock in the" K "bros for a bunch of 'glass cars, smack on a tariff of say $5k for the use of the old grouch's coveted CSX numbers. CS would make a bunch of cash for not even getting his hands dirty. Heck ,they don't even need a building, just drop ship cars to the existing dealers, rite out ofthe containers fresh from Poland.What a bunch of moorons!

Looks to be on the same track as before.

Again,VERY HIGH RISK !




Posted 8-26-04
I would regard it as VERY high risk.


Carroll Shelby Intl (CSBI)
1.90 -0.05 (-2.56%)
as of 08/26/2004 at 10:31AM EDT (OTCBB Delay: 15 mins.)

Last edited by 392cobra on 08-26-2004 at 07:48 AM

Blue chip shares for me..:LOL:

Bernie

As my grandma used to say "there's always a job for someone with skills who knows how, and a job as their boss for someone who knows why..." Making a great car takes great skill, making a great company takes management of those skills..

can't build a great car w/o ordering the parts at the right time or having the money in the bank to pay for the parts.

Shelby Autos was run by Brent Fenimore. He tried, but really had no training on running a successful business. If you were a customer you might have seen, or if you were a vendor or employee you definitely have seen, some of the typical Shelby flubs. CAV, AC, next come the Expedition and Mustang, etc. The focus has always been on the pot at the end of the rainbow, not on quietly working hard like the successful kit manufacturers who make lots more money than Shelby (well, Shelby doesn't even make money :P ). In the end, things didn't work out as seen in the SEC filing. Shelby should own the replica market. Because they don't, obviously there is a problem.

Kris,

Your posting implies a "past tense" for Brent - IS this true and if so, who is now running the show over there.

Regards,

http://finance.yahoo.com/q?s=CSBI.PK

33 cents today... Too risky for me. Did I mention I got to 140 (5600 rpms) during my break in procedure (1500 miles). Another 1000 miles we'll ease it to 150.

Two concerns:

Shelby International appears to be using the income from purchaser deposits to finance operations other than 'Auto' - the Cobra manufacturing/marketing subsidiary. However, only Auto is liable for the contracts with purchasers. Pressure to honor payments on outstanding loans extended to Shelby International may compell managers to risk the liquidity needed to honor the committments made to purchasers of the roadster. Only Shelby International is publically owned and default on a loan has consequences for investor confidence that are not readily softened. Purchasers, on the other hand, can always be reassured, "We're working on it. Give us time."

Sale of additional stock or borrowing are the sole sources of supplemental capital. The stock price has plummeted since the initial offerring, suggesting that investor confidence has expired. The folks who own stock today likely hold on to it for lack of any alternative. Resignation is no motivator to purchasing more. Borrowing may be an option, since the majority of the outstanding debt is is held by Shelby, likely but possibly not in his own name, i.e., a personal loan. Shelby International has not had to compete for dolllars on the open market and so has benefitted from whatever interest rate, payment requirements and failure options Shelby has demanded of a company that carries his name. Whether a commercial lender would treat the loan to Shelby as a debt like any other would depend in large part on the terms and this information is proprietary.

The company's success or failure has significant implications for Shelby's ability to market his name to investors in the future. He may sell designated models of other business' cars and so profit personally. He may never again pursuade investors to participate in a business he owns and so share in the value unique to his reputation among auto enthusiasts.

I hate to think we influenced any prices but the stock closed at 26. Interesting little ralley late in the day. It rose 3 before settling in at 26... cents that is

.

Can you short the stock at .26 cents?

TURK

8 cents today. Bummer...

How sad is that???
 

.08 cents! Geez!!!
They may not make it to the New Year. How sad is that, and indeed for all of us?
Merry Christmas,
John Russell

Hell... it was down at a nickel earlier this week! At .08 that's more than a 50% jump in value... :LOL:

Time for a reverse split.

-John

I KNEW I should have bought some @ .05 cents! Damn!!

I have been looking into buying 10 shares, and requesting the certificate. It is a process though. I had to track down the transfer agent( which is Pacific Transfer in Vegas) They have no record of the company...dead end. So now I need to call csbi direct to see if a cert' can even be created. I havent bothered with this because I dont really feeling like being a nuicance(sp) to these guys at this point. So I guess I am SOL. I do like to collect cool stock certs though, so maybe Ill try again next year, if we still have a stock to play with.

Dane

Don't be too qwik to burry the old grouch. He's got some contracts to be finalized with FoMoCo next year, ever hear of a Shelby Mustang GT350?(last one on E-bay sold for $300K) The new 2005s (or 6s) will be out and watch that $.08 sent stock go thu the roof. Shades of the IPO boom of years gone by.

I would venture a guess that any of the Ford contracts and royalties that will be paid will go to Shelby himself and not the company that's stock is withering. I could be surprised ,but don't think so.