Originally Posted By: filmitIt would save Remington lots of money in the long run to either replace or refund at MSRP every 597hmr on the market. It's too bad the bean counters never see the big picture or the potential long-term damage to a brand icon. I don't think they know a way to factor that cost in or they would have jumped on it. Brand loyalty only goes so far. Just ask GM or Chrysler. (Bad example, Cerberus owns them too).
You are correct, filmit.... Its a bad example because Cerberus never owned Chrysler or GM in total. Cerberus is an investment capital firm.
In reality, Cerberus has never publicly disclosed what its exposure to Chrysler is since Chrysler failed/filed bankruptcy, but it is far less than the total Chrysler acquisition value of ~$7.4 billion because the company (Cerberus) invested in it along with a number of co-investors - in fact a huge outside consortium of investors not tied to Cerberus in any way.
Financial experts will say that none of Cerberus' investments make up more than 5 percent of its total assets (~$23.5 billion), which makes its exposure to Chrysler and Chrysler's financing arm (Chrysler Financial) maybe at the extreme as much as $1.7 billion, and it is likely that Cerberus will still make a good return on its investment in Chrysler Financial.
In fact, Cerberus now has their fingers in both Chrysler Financial and GMAC (GM's financial arm), which may have been what they wanted all along. So, even though they took on a risky investment and were publicly tied to the Chrysler failure, they might consider their loss as a worthy risk for what they got and will get in the future, which might make $1.7 billion look paltry by comparison..
But in reality, they don't own Chrysler or GM or their respective financial arms and they never did... A 5% investment cap on their liquid assets won't buy too many large US corporations today without some other major outside/non-Cerberus players being involved. Cerberus is different in that they do not mind throwing their name into the game. Other investors like to remain "silent" with their dollars.
In the case of Chrysler and GM, the silent dollars far out stripped the public dollars in terms of who actually owns what...
It seems like everywhere you post here on PM you are becoming "notorious" (an extractor term) for posting incomplete "facts" to make your point.
-BCB