Cub Crafters stock

[hotrod180]

I'm curious if anyone here has purchased or intends to purchase any CubCrafter stock.
I checked out their website, looks like it's $5 a share and has to be purchased through CC.
Apparently they will be issuing "up to 10,000,000 shares",
so they have the potential to raise $50M.

Investors | CubCrafters

Microsoft Word - Cub253G2110222(2) (manhattanstreetcapital.com)

[Willie]

I tried to but the state of Texas doesn't allow purchase, except under certain conditions which I don't intend to pursue.

[hotrod180]

Interesting that there are those requirements / restrictions, but only for some states.
Washington is on the list right along with Texas.
Seems like a bit of a red flag...

[AKjurnees]

Deleted, not worth the time.

[Pete Schoeninger]

I put a grand into it...............with fingers crossed, and wife on warpath if it fizzles. Happy New Year everybody!

[mam90]

I subscribe to the old adage that to make a small fortune in aviation you start with a large one…

[skywagon8a]

This stock offering sounds to me like the Richmond heirs are looking to cash out of their father's business. What better way than to sell it piece meal to the public with no guarantees the public will ever see their money back.

[RedOwlAirfield]

As IPO's go, it's my opinion that this one is "early" for the classical standard. They're betting on the extreme nature of the aviation hobbyist. Honestly that might just work too. But to my mind, this is just an opportunity to bolster the bottom line by getting funds from folks who can't afford to be customers but would like to. The tepid receipt by the street of this offering would appear to signal that analysts are cautious. I also believe that their initial funding goal is optimistic at best.

For my strategies, it's just way too risky. Very little possible upside with big potential for downside. The business is stable and profitable and will remain so, but in the aviation industry (already volatile) the finite market limits expansion potential and being at the leading edge of a trend - well there are just too many arrows in the air. It is after all a stock investment, so I strongly urge those who are looking at this from a purely aviation standpoint, the take a step back and view it dispassionately from a purely rational outlook. It might still be for you, but I believe this is an offering for only the most risk loving investor and I don't really think that matches the aviation background of the target investor.

[Narwhal]

I did make the $10,000 investment. After visiting the factory for my FX3 build I believe they have a good product. Their backlog was nearly 2 years from order to delivery and I think they are looking to raise money to increase production capacity. I believe the profit margin on their airplanes is fairly high (~25%?). A lot of the bad-mouthing of the company that I hear probably comes as a result of that, but I figure that'd be good for the owner/stockholder.

With that said, I only made the investment because I can afford to lose it all and probably not notice too much. It's not too much different in my mind that putting it all on red at the roulette wheel in Vegas. I will let it ride for awhile and see how it goes.

I do not invest in individual stocks very often and so I don't pretend to know what I'm doing.

[AKjurnees]

.

[Narwhal]

Well, I knew I'd take a ribbing for admitting I did it, . I might be that guy PT Barnum was talking about. Time will tell.

[Steve Pierce]

Read the entire document and then have someone savvy in investments read it. Who is the board of directors? Looks like a large cash out for some when I thought the whole idea was to have working capital to build infrastructure to up production and cut the 28 month wait time down.

[hotrod180]

IMHO this is definitely a move by CC management to generate capital.
You buy the stock from them, at the price they set.
Probably have to sell it back to them or at least through them too.

Reminds me of a local bank start-up I invested in several years ago.
I bought the stock from the bank, if I sold it that had to go through the bank also.
They set the price-- I asked about net worth / number of shares,
I was told that wasn't applicable.
They ended up selling to a bigger bank, who redeemed all the outstanding shares of stock,
and I did make a modest profit.
Turns out that was the scheme all along-- funny,
because when they started up their catch phrase was "we are your local hometown bank".

I may or may not buy some CC stock,
but if I do, it will be more so I can say "I own a piece of Cub Crafters",
rather than thinking I'm gonna make a bunch of money.

[Farmboy]

Double edged swords.

I have zero investment experience and therefore can not comment on the value.

But here’s a condensed story I know well.
Bob Alkema started Malibu Boats in 1982, like any company, with guts and a passion by a guy with a dream.
They broke into a market owned by Mastercraft and Correct Craft, and not only became a competitor, but by late 90’s, early 2000’s they were the number one selling tournament ski boat mfg.

At some point mid 2000’s Bob Alkema’s advisors suggested he sell off some of company so he didn’t have 100% of his eggs all in one basket.

So quietly he looked around and the word got out that he was looking for an investor or two to take over less than 50% of the company.

Enter Black Canyon holdings or some investment company that was supposedly owned and run by two enthusiast waterskiers, that loved the idea of being part of Malibu. So they were allowed to buy in.

Long story condensed even more, they were apparently the front men for a much larger investment firm looking to build the next Brunswick.

Within a year Bob Alkema and the three top positions were eliminated from the company.
Within 2 years nearly everyone with a 20 year jacket was shown the door. Then floor managers and money managers from places like Sea Ray, and other volume builders with little interest in retaining quality were brought in. Warranty was declined and dealers became problems. The “Malibu” Implied warranty to take care of customers ceased to exist. Dealers now fought with the customer and the mfg. just to stay in business.

At the same time, Entrepreneurs and inventors are excellent at starting something and often bad at daily business and building a company to new levels. In this regard the “new Malibu” reorganised the work space and henry ford would have been proud.
But the personal touch, the proud employees, it was all gone.

Instead of going to work to build a great boat, they went to work hoping to not get fired. From a love to hate job.

Malibu then went public, started a trailer company for no other reason than investing 1 million in a facility and tooling now shows 5 million better to the shareholders.

Then they bought Cobalt, and announced their volume doubled last year. Hahahaha. If you buy a company producing the same volume then of course your production doubled.

And on and on - bought more companies (Pursuit maybe, etc) because the bottom line is showing value added and potential to the shareholder.

And as a company and product - it’s absolutely nothing like it once was. Better in technology(like everything) and worse in quality.


Sent from my iPhone using SuperCub.Org

[GreggB]

Let's collectively buy a controlling share of Cub Crafters then force them to start building Skywagons.

[skywagon8a]

Let's collectively buy a controlling share of Cub Crafters then force them to start building Skywagons.

I believe there is an outfit which has started such a program, though not at the same scale.

[skywagon8a]

Double edged swords.

At some point mid 2000’s Bob Alkema’s advisors suggested he sell off some of company so he didn’t have 100% of his eggs all in one basket.

So quietly he looked around and the word got out that he was looking for an investor or two to take over less than 50% of the company.

Poor advise from his advisors. He would have been better off selling to his employees in an ESOP program. That would have kept away the outsiders. The Brooklin Boatyard in Maine did this recently.

[mvivion]

Based on casual observation of the industry, a long time ago, I decided to NEVER invest in ANYthing even vaguely aviation related.

MTV

[skywagon8a]

Based on casual observation of the industry, a long time ago, I decided to NEVER invest in ANYthing even vaguely aviation related.

MTV

The certificates make interesting wall decorations.

[hotrod180]

I believe there is an outfit which has started such a program, though not at the same scale.

I thought of them when this CC stock thing came up.
"Not on the same scale" is an understatement--
I believe that outfit (local to me) has produced one completed customer's airplane...
and it took three years to do so.
I keep hoping they'll live up to their hype, but so far IMHO they have not.

[RedOwlAirfield]

Based on casual observation of the industry, a long time ago, I decided to NEVER invest in ANYthing even vaguely aviation related

Very wise decision! I understand wanting to help, but this is money we're talking about. Along the lines of Groucho's comment - "I wouldn't belong to any club that would have me as a member" I've always thought that any aviation business that needs my money is a business I want nothing to do with - financially.