It's Official.....Brunswick is Junk

That does it, I'm stabbing the hot dog guy in the neck on my way to work.
 
HA! I almost got my butt handed to me with bonds. I had a few ARS bonds and the bank refused to buy them back. Cuomo sued the banks to force them to honor their agreement. They just settled with me this week. Took 9 months to get my $$ back.
 
Analyst: Brunswick sell-off excessive after rating cut

By Associated Press
Originally published 11:37 a.m., October 21, 2008
Updated 04:32 p.m., October 21, 2008


CHICAGO — An analyst said Tuesday that investors overreacted by selling off shares of boatmaker Brunswick Corp. after Moody’s Investors Service gave the manufacturer a junk rating on debt.




RBC Capital Markets analyst Edward Aaron said Monday’s downgrade by Moody’s, which sent the stock down 22 percent, will have minimal impact on Brunswick’s financials.
Knoxville is home to the Brunswick Boat Group.
“Brunswick faces strong headwinds that will likely result in further downward estimate revisions, elimination of its dividend and potentially the impairment of certain assets,” Aaron wrote in a research note published Tuesday. “While it might be a long road to recovery, we believe solvency concerns ... seem excessive.”
Aaron said the ratings cut means the Lake Forest-based manufacturer will see a slight interest rate increase on its $250 million in senior notes, which should equate to a less than two-cent-per-share impact.
On Monday, Moody’s lowered its ratings on Brunswick’s ratings for unsecured notes, commercial paper, along with its corporate family and probability of default ratings, citing “turmoil in the financial markets” that would slow discretionary consumer spending and put pressure on Brunswick’s dealer networks and liquidity.
Aaron told investors that Brunswick “will likely” violate a leverage ratio covenant on a revolving credit facility during the quarter, but said he believes the company will resolve the issue by reducing the size of the revolver, accepting higher interest rates and pledging certain assets.
Brunswick shares closed Tuesday down 17 cents, or 3.79 percent, to $4.32.
Earlier this month, Brunswick said it was suspending production at three Knoxville area manufacturing plants and furloughing workers through the end of the year. The company also cutting 1,400 jobs and closing four plants in other states. The company also expects to record two non-cash impairment charges totaling about $496 million before taxes during the third quarter.
 
Four Suns said:
And that there is the rub I have right now... How is it that when we as consumers want to finance something we get a rectal exam and when we give a big deposit to some privately held business, there is no way to reciprocate the view into the health of the business? Seems a little unfair....
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That's the understatement of the year. But ask anyway. Some business you can smoke out easily. Not so easy with a boat dealership. I would think MM is in big trouble the way they treat their customers. I hope they go bust and Searay grows a brain and finds another distribution chain. :smt038
 
From Monday's WSJ: http://online.wsj.com/article/SB122445812003548473.html

Excerpt: Jason Grumet is currently executive director of an outfit called the National Commission on Energy Policy and one of Mr. Obama's key policy aides. In an interview last week with Bloomberg, Mr. Grumet said that come January the Environmental Protection Agency "would initiate those rulemakings" that classify carbon as a dangerous pollutant under current clean air laws. That move would impose new regulation and taxes across the entire economy, something that is usually the purview of Congress. Mr. Grumet warned that "in the absence of Congressional action" 18 months after Mr. Obama's inauguration, the EPA would move ahead with its own unilateral carbon crackdown anyway.

Excerpt: The EPA hasn't made a secret of how it would like to centrally plan the U.S. economy under the 1970 Clean Air Act. In a blueprint released in July, the agency didn't exactly say it'd collectivize the farms -- but pretty close, down to the "grass clippings." The EPA would monitor and regulate the carbon emissions of "lawn and garden equipment" as well as everything with an engine, like cars, planes and boats.
 
AndersonAcres said:
From Monday's WSJ: http://online.wsj.com/article/SB122445812003548473.html

Excerpt: Jason Grumet is currently executive director of an outfit called the National Commission on Energy Policy and one of Mr. Obama's key policy aides. In an interview last week with Bloomberg, Mr. Grumet said that come January the Environmental Protection Agency "would initiate those rulemakings" that classify carbon as a dangerous pollutant under current clean air laws. That move would impose new regulation and taxes across the entire economy, something that is usually the purview of Congress. Mr. Grumet warned that "in the absence of Congressional action" 18 months after Mr. Obama's inauguration, the EPA would move ahead with its own unilateral carbon crackdown anyway.

Excerpt: The EPA hasn't made a secret of how it would like to centrally plan the U.S. economy under the 1970 Clean Air Act. In a blueprint released in July, the agency didn't exactly say it'd collectivize the farms -- but pretty close, down to the "grass clippings." The EPA would monitor and regulate the carbon emissions of "lawn and garden equipment" as well as everything with an engine, like cars, planes and boats.
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Now that's scary:smt119.
 
mwph said:
However.........Point being that this entire crisis was easy enough to see comming. I moved investment money far away from the financial sector 2 years ago.
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And Mwph short for Michael W.P. Hindsight, perhaps?
 
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Four Suns said:
On MSNBC late last night they were discussing one of the democratic proposals under consideration for a national ad valorem tax (an annual national personal property/real estate/asset tax). There would be exemptions for 401k accounts of value of less than 100K and houses less than a certain value, but it would tax everything else annually that people own above the "average joe"...
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Wouldn't surprise me at all. There is too much money in 401K's right now for "them" not to tax it eventually. Taxing this income (while it sits in the 401K account) is inevitable in my mind. Don't forget that it will be taxed again upon withdrawal.

I doubt assets outside of 401Ks or IRA's will be taxed for two reasons: (1) Too hard to track and (2) The truely rich have too much money outside of 401K's and IRA's to allow it to be taxed. Remember that it is *always* the middle class that gets nailed. *always*

Is there any reason to think taxing is more likely under a Democratic President than a Republican President? The Republican policies over the last eight years have proven to be far more fiscally irresponsible than the adminstrations that have preceded it.

(of course. . this is an argument for split government)
 
Brunswick still has a market cap of $300M+. My guess is that they would go through Chapter 11 first to cleanse the debt before someone would buy them and break them up. They really can't sell any material assets when they are on the edge like this. "Claw Back" provisions would apply if they they sold assets and entered Chapter 11 in the near future. Besides, they won't get anything for them in this market.

Unfortunately, warranties are far down the list of creditors. What they need is cash which they are quickly running out of. The question for a bankruptcy court is whether a materially debt reduction would result in a profitable business.
 
keokie said:
Thunderbird1, do you really believe that definition fits the liberal movement in America?
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"Liberal". "Conservative".

These labelsand their flagrant misuse is a big part of the problem with American politics these days, IMHO. We are so lost in the rhetoric that it makes it hard to actually see the policy behind it.

I personally feel this is a large part of why McCain has been trailing in the polls. It is my opinion that most people are tired of divisive politics, and that McCain has failed to say much more in his campaign beyond "I am not Obama and I am not Bush".

In the last debate, Obama seemed more able to speak to the McCain attacks (Ayers, et al) than McCain was able to. That certainly has not been helping McCain in his efforts.

Personally, I would far prefer if Obama was more centrist in his views. No doubt. At the same time, I wish McCain was more articulate (and consistent) in his.

Now. .. I am sure others on this board hold a different opinion, and I respect those positions even if I don't agree with them.
 
Four Suns said:
Houses, boats, cars, planes, and investments are all easy to track... they are all registered somewhere... Virginia is *very* good at finding out what you own and I'm sure the US government will just tie into the state's databases to do it... Probably be on the same bill for some states with an added "4%" or something for our friends in DC.

That'll be really good for industry...
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Yeah. . .I think I was going more with (2). The truly rich will find a way not to have the bulk of their assets taxed, while Joe the Plumber will be taxed out the ying-yang.

I personally believe in a progressive tax structure. .but I don't believe we have that right now. Not when you consider that the wage tax has a limit beyond which one pays no wage tax. Not that I want Obama to change that . . but I am just pointing it out.

And the way "deductions" and "AMT" works is simply nonsense. Corperate, Estate, and Capital Gains taxes are a seperate, equally evil, topic.
 
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