Huffy sentiments-I've been in and out of this one over the last 3 years. This stock held up fairly well through the recession. I first bought here because of speculative appeal. The company cashed inn on the scooter fad, but eventually it wore off and inventory was written down. The company was also flush with cash from a recent divestiture. The company reinvested those proceeds into another sporting goods company at a very good price. Golf, in line skates, snowboards and skis to name a few. The Huffy brand name associated with bikes is still there, but not made in America any more, but in China, along with many other goods. The company made a failed bid for the bankrupt Schwinn Bike Company. I think it was good, it failed. The company was smart not to raise it's bid. Schwinn bikes are being sold in Walmart now. Sales volume is there, but profit margins are not.
The company has stated in the past they have been for enhancing shareholder value. The parachutes are in place so if the right bid comes along. The pushers are here now, posted below. Their bid failed at Rawlings. The question is how long will they wait to start the process. Speculative appeal aside,fundamentals are starting to improve on their own here.
WASHINGTON (Dow Jones)--A group including Camelot Ventures LLC reported a 5.2% stake in Huffy Corp. (HUF), according to a Schedule 13D filed Monday with the Securities and Exchange Commission.
The group beneficially owns 768,900 Huffy common shares. It purchased the shares from March 25 to Friday for $4.94 to $6.30 a share, the filing said.
Camelot said it acquired the stock for investment purposes because it believes the trading prices don't adequately reflect the potential value of Huffy's underlying business and assets. he group also said it intends to explore opportunities to enhance the value of Huffy's common stock.
The group further said it may encourage Huffy to explore strategic alternatives to increase shareholder value and, depending on Huffy's response, may consider pursuing such alternatives on its own or with third parties.
Huffy's shares closed Friday at $6.25 each. Huffy is a bicycle maker.
Camelot Ventures is private investment group. The group's two primary partners are Daniel Gilbert and David Katzman.
WASHINGTON (Dow Jones)--A group including Camelot Ventures LLC reported a 5.2% stake in Huffy Corp. (HUF), according to a Schedule 13D filed Monday with the Securities and Exchange Commission.
The group beneficially owns 768,900 Huffy common shares. It purchased the shares from March 25 to Friday for $4.94 to $6.30 a share, the filing said.
Camelot said it acquired the stock for investment purposes because it believes the trading prices don't adequately reflect the potential value of Huffy's underlying business and assets. he group also said it intends to explore opportunities to enhance the value of Huffy's common stock.
The group further said it may encourage Huffy to explore strategic alternatives to increase shareholder value and, depending on Huffy's response, may consider pursuing such alternatives on its own or with third parties.
Huffy's shares closed Friday at $6.25 each. Huffy is a bicycle maker.
Camelot Ventures is private investment group. The group's two primary partners are Daniel Gilbert and David Katzman. |
