ST Alpha - "most of the losses recently were more related to huge inventories and the high cost of making cheap plastic instruments...." (Reading a Post)

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In response to "I'll predict that whoever buys it will be laughing all the way to Wall St." by crash davis

most of the losses recently were more related to huge inventories and the high cost of making cheap plastic instruments....

Posted by x (aka dmuck) Nov 12 '10, 09:06

which totalled a loss of a cool $65 million in q3 alone. whether anyone would be laughing all the way to the bank might depend a lot on if the price is fire sale enough to make it a worthwhile purchase. maybe activision/blizzard would see it as useful since they could then kill guitar hero and monopolize the whole segment, I dunno. but overall i'm not sure it's completely the plum you think it is, though a lot is dependent on the price it's gonna go for.

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who knows, but being over inventoried in q3 might not be a bad thing when you're core business makes money on Xmas sales - crash davis Nov 12, 09:11 2
- perhaps. any buyer should be *very* careful about the price they're going to pay mostly what i'm saying... - x Nov 12, 09:15 1
  - yeah, I have no idea what they paid. I do think its interesting that they won't wait to see how the new tech plays out, but maybe a sale would take - crash davis Nov 12, 09:21

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most of the losses recently were more related to huge inventories and the high cost of making cheap plastic instruments....

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