Easter Morning
MNGT6681UWG-Newnan
country, " Xristos Anesti", which mean Christ has Risen.
I hope your day goes well and that you have fun with your families,
friends or significant others.
Michel
Ken Ibeto
From: MNGT6681UWG-Newnan <kypro...@gmail.com>
To: MGNT6681UWGNewnan-MBA <financeuwg...@googlegroups.com>
Sent: Sun, April 4, 2010 7:23:12 AM
Subject: Easter Morning
To unsubscribe, reply using "remove me" as the subject.
Andrew Caldwell
Looking at things
-We had the highest cash flow from Ops in round 6, driven by our
market share position (we are cleaning house in low end and
traditional)
-Sales were super strong, again driven by market share
Given it is Easter and per our discussion last night Beau I'd prefer
to minimize our time spent on this today.
Perhaps we could
1. Pay down some debt and see how that rewards our stock price
2. Take pricing to the bottom to see just how much impact we can have
on Digby or Ferris. It appears they were smart and issued stock
(paying no dividend) rather than debt. Thus if sales continue to be
stolen by us they don't run into a capital crunch. On the other hand
if this happened to us because we used longterm debt we would find
ourselves cash strapped. Learnings for the real game....
Let me know what you guys think. Feel free to call me on my cell
678-633-2510 if you would like to discuss.
Beau Robertson
1. Production--moved low end products up .5 in automation to 8 for Able and Acre.
2. Bought a little capacity for our third traditional product 400 thousand units.
3. Lowered prices in Low end segment $1.5 or so. We should be priced pretty low compared to competition.
4. We are basically maxing out our production in this round to sqeeze as many of the competitors as possible. We have an adjusted production capability due to increasing our A/P policies. So if you look at the line under the amount of production that we have entered for the year, it will show the actual adjusted amount that we will be able to produce.
5. Finance- Paid off 20 million in Long Term Debt. Bought back max stock of approx 8 million. Final cash projected year end balance is a little over 20 million to protect us in the case that we outproduce demand.
6. **** Next year in year 7, I think we should tighten down on Traditional Segment and decrease prices in order to really make competition hold some inventory*** I have noticed that Ferris, Although positioned very well has had year end cash balance of approx 5 to 7 million over the past two years. They are cutting it very close. All it would take is one bad year of having too much inventory and they would have to have a visit from Big Al. I think we need to try and force an emergency loan if they keep hovering around this low cash position.
Call me with any changes. If not, I guess we can all get back together on the call for Tomorrow Night around 9pm.
________________________________________
From: financeuwg...@googlegroups.com [financeuwg...@googlegroups.com] On Behalf Of Andrew Caldwell [andrew.llo...@gmail.com]
Sent: Sunday, April 04, 2010 9:02 AM
To: financeuwg...@googlegroups.com
Subject: Re: Easter Morning
Looking at things
Perhaps we could
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russel...@wachovia.com
Indeed He is risen!
The strategy sounds good. I agree with Andrew that we can hurt the competition and impact their capital by lowering prices.
I was curious how Ferris has financed their company so I spread some of the key financial statement results. Each round they have kept cash on hand low but have been able to avoid an emergency loan. Looking at their trends might help us when the competitions starts. Surprisingly they have financed their company from earnings. They have not issued any stock or long term debt and have been paying dividends. In fact they have purchased common stock back. Because their variable cost is low, I was going to input their production data but have ran out of time. As we know, they are very automated. They have incrementally increased automation each round for each segment.
I have attached the spreadsheet if you are interested in looking at.
Enjoy the rest of the weekend!
Russell King
Special Assets Management
Portfolio Manager
Wachovia Bank
Mail Code G0128-086
171 17th Street, Bldg 100, 8th Floor
Atlanta, GA 30363
404-214-5895 TEL
404-877-6965 FAX
A Wells Fargo Company
| Beau Robertson <Beau.M.R...@Pulte.com>
Sent by: financeuwg...@googlegroups.com 04/04/2010 02:36 PM
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