Thoughts on Cerberus Going Public

October20

Ah, what the hell. I might as well add my two cents about Cerberus going public with Freedom Group. I guess the big question is: Why? Why are they going public and why would people want to buy their stock?

The Obama gun buying boom is calming down and there will be an ample supply of used guns for a long time unless we magically start converting thousands of new gun nuts every week. Remember, past performance does not guarantee future success. Unless Obama does actually start attacking us, then I find it hard to believe that this is a great investment. Granted, it is possible if Obama fails on other agenda items, guns could become an issue again. We only cost political capital, rarely does gun control require printing more money to pay for programs the country can’t afford.

Don’t take anything I say as advice. I know nothing about investing, and I may well be proven wrong. But just based on observations on the ground with actual customers, I am not sure where the gun buyers will be in a few weeks, a few months, or even a few years. Thoughts? If the opportunity to buy opened up tomorrow, would you buy any of their stock?

No obviously related posts.

posted by Bitter under Shooting

8 Comments to

“Thoughts on Cerberus Going Public”

On October 20th, 2009 at 12:19 am What’s a Wall Street Journal-Quality Recipe? | Bitchin' in the Kitchen Says:
[...] UPDATE: What? Me, opinionated? Never… [...]
On October 21st, 2009 at 5:43 pm persiflage Says:
My guesses would be:
First, Cerberus is most likely going public because their business plan calls for some significant capital expenditures, and they are hoping to attract that risk capital from investors at a relatively low cost to their business.
Second, their offer does seem a bit behind the curve for growth-oriented investors – Bitter’s observation about the prospect of several years of torpid gun sales is likely to come true. That being said, I don’t think I am interested in their offer of an equity stake.
On October 25th, 2009 at 9:05 pm Dave Hardy Says:
Sounds like this would have been a splendid idea in, oh, January. Sorta like buying gold, you’d have made a killing. In late October, when gun company stocks and gold are very high, not so wise.
On October 27th, 2009 at 10:10 am Bob Coyle Says:
good site… interesting. accurate. Bob
On November 2nd, 2009 at 2:28 pm Michael F Says:
Personally, I think gun nuts are just that….nuts…..and nothing they do in terms of buying/selling/whatever makes any sense to rational human beings.
On November 12th, 2009 at 11:17 am Angrywhiteman Says:
Well, your 2 cents are turning all green and moldy like pennies left in the bottom of your purse to long. Have you been hi-jacked by the jackbooted thought police
On November 12th, 2009 at 12:58 pm Bitter Says:
I know, I know. I should update.
On November 17th, 2009 at 3:31 am WSJ say Freedom Group Going Public. Gun blogger quoted | The Firearm Blog Says:
[...] has written a post-WSJ post about the [...]