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Cub Crafter news

Willie

Willie

MEMBER
Kerrville, Texas
I received an email from CC yesterday announcing an IPO to raise $50 Million for expansion. What do the expansion experts at SC.org think of the proposal? The minimum investment is $400 at $5 per share, but my initial thought is that this economy is not at a good point for an IPO, since Thursday's numbers will probably indicate a recession in progress.

On the other hand, I can afford to lose the minimum. :wink:

Willy
 
As a CC customer I received the same notice. I have no comment on the investment risk or value. I do have a concern that CubCrafters will become driven by short term shareholder profit rather than innovation and sound engineering.
 
I know they're almost three years behind but it only takes a few extra orders to put a company in that spot. If you look at what they've done so far making ruffley fifteen hundred kits based off and using mostly 80 year old designs it's very impressive. They fill a niche but it's just that,a niche market.
Economy hasn't settled in for the long haul and insurance is becoming a issue with new people promptly wrecking quarter million + dollar machines. I don't see 50 mill anywhere in the recreational stol market ever. Also don't see that changing with fewer kids taking up flying. I think we will also see more entries into the market as time passes further thinning the sales.
 
frequent_flyer said:
As a CC customer I received the same notice. I have no comment on the investment risk or value. I do have a concern that CubCrafters will become driven by short term shareholder profit rather than innovation and sound engineering.
Click to expand...

Cubcrafters seems to be currently driven by passion and innovation, they are doing well. Once outside money comes in with an expectation that they get a (large) return on their investment they will go downhill fast. If they really want to sell shares of the company they should only sell them along with your purchase of an airplane. I think they sold the Top Cub certificate in the past to raise money.

The grass is always greener on the other side.

Tim
 
An IPO to raise $50 Million is nothing more than an offer to lend CC some money which CC never has an obligation to pay back. The only way an investor can get his (loan) money back is if someone else is willing to buy the stock shares from him. CC gets the $50 mil, you get a piece of paper (or a computer entry).

If CC borrowed the $50 mil from a bank, the bank won't give them the money without protecting the bank's investment and they will expect it to be payed back. An individual buying stock doesn't get the same protection.
 
A recession is looming if not already here, investing in an extravagant toy company is dicey…. but then again the people buying $250,000+ toys are probably recession proof
 
God bless American entrepreneurial spirit. I hope they knock it out of the park.

30 years ago everybody scoffed at Apple and Microsoft. Who's laughing now? Not me. I didn't buy their stock!
 
After the way I and other's I know were treated by CC I really prefer to not deal with them.

That said, they have survived previous recessions, market failures and many other challenges while other manufactures were not able to continue.

$400 for a gamble and to say you are a part owner in Cub Crafters? I bet they find a group willing to do just that.

Praise the land of freedom, and the option to come up with ideas and implement them!
 
I trust they have an investment banker working with them and the offer to sell shares to us mere mortals is just a nice marketing gesture. Otherwise……..

Having participated in an IPO ten times the size of this one twenty years ago I kind of know how it goes, or should go. Not sure the offer to sell is even legal in the eyes of the SEC if this is to be a true Public Offering. But what the heck, maybe they know something I don’t know.

Rich
 
A recession is looming if not already here, investing in an extravagant toy company is dicey…. but then again the people buying $250,000+ toys are probably recession proof
Click to expand...

Speaking of recession proof types.... I remember talking to a friend who was "Financially Fortunate". And during the last economic downturn, he was telling me about the new Corvette he was buying and all the mods he was going to do etc.... I said "Man why are you buying such an expensive car in this market? Don't you think you should buy something less expensive?"

his response.... "I am buying something less expensive".... "I was going to buy a 1/4 million dollar Porsche"....


I always think of that when I think some one is being foolish with their money. I just have to remember it's their money....
 
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sodak said:
Where do I find this information, on the 75% ownership.
Click to expand...

As with all third party chatter until you read it in a formal prospectus take it with a grain of salt, but it was a conversation at the CC booth at Oshkosh after the formal announcement from someone who is likely to know.
 
So what’s the story about the new CEO? Why the animosity?

Grow or die. It’s the nature of a competitive industry. How to do it is the hard part. I hate debt and I’m no fan of banks so at face value I appreciate their attempt to fund growth without taking on debt.
 
Just send me the 400 bucks andI will send you a picture of my Tcraft autographed by me. Might be worth a fortune some day. Or not.

Jim
 
After building one of their kits, I think they need new leadership more than more money.

The RV-15 will eat their lunch anyway.
 
I previously built an RV-8

I won't get into a detailed review, but I will never build another CC, and would glady build another RV.
 
Steve Pierce said:
Hasn't been approved by the SEC as of yet which I understand will take some time.
Click to expand...

Just out of curiosity, what does it take to get SEC approval for something like this, or any business out there? Do you just need an idea? Proven production? Enough money to pay off the SEC?- Sorry, no one would resort to that of course.

I am interested in what process would be required because it seems that there is some type of filter applied by the SEC, but it is all magic from my limited knowledge.
 
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