[pure-silver] Re: Some good news concerning Ilford
- From: Georges Giralt <georges.giralt@xxxxxxx>
- To: pure-silver@xxxxxxxxxxxxx
- Date: Wed, 23 Feb 2005 17:08:54 +0100
Selon Nick Zentena <zentena@xxxxxxxxxxxx>:
> On Wednesday 23 February 2005 03:44, Georges Giralt wrote:
> > Hi !
> > I do not think this is as good news as it seems.
> > First, the plant was sold and is leased to the new Ilford Photo company.
>
> When they owned the plant they needed to earn enough money to justify
> the
> value of the land. Companies close locations because they can sell the land.
> Now the new land owners may raise the lease payment or they may force Ilford
> out. Worse case they'll have to decide if moving is worth the effort. OTOH
> before you could have seen the whole thing closed because the land was sold
> for condos.
>
>
> Nick
>
Hi !
How do you expect that adding another company will reduce the costs of ownership
?
It may for the very first year, as you've sell some assets, but won't show the
next fiscal year... Even for the first year, it could be bad : Often, selling
assets only serve to pay interest fee to bankers or due bills. And do you
expect the new factory owner to be able to resist it's shareholders better than
Ilford's ones ? At the end of the first fiscal year, these share holders will
yell because ratios deteriorate too much, so they will force the new owner to
raise the lease an this may cause the failure of the new Ilford Photo
company... I call these deals "fools deals" because the previous Ilford owner
has got back it's money so can present a nice report and everybody thinks that
the new founded company is safe.... For one year. This could only works if the
market sees huge demand for the products they make, so this kind of deal is a
real restart, but not in a declining market. In this case it's a smoke
screen...
I _do_ hope I'm wrong on this, but I fear I'm not. (during a previous life I'd a
bad experience with such a "wondefull deal")
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