Thursday, August 5, 2010

Clarus Presentation

One of the things that I am quite fond of doing after I sell off a common stock position in a company is to keep track of them. Often, this includes occasionally looking at their stock price and keeping the RSS feeds for their SEC filings in my Reader program. This morning, I a woke to see the most recent 8K for Black Diamond Equipment (formerly, Clarus).

To me, the most interesting part was how they intend to grow the company to $500 million in revenues and the chart that showed the vast amount of money that they can take from other companies, if they are smart. On thing that bothered me in this instance, was that they made mention of having the ability to issue 40 million shares of stock to grow the business with. Having formerly been long BDE, I was actually disappointed at the acquisition once I got read the terms of it. I am sure that it is a great acquisition, with tons of potential, but didn't feel that the stock price justified it, relative to cheaper shares of other companies out there.

Regardless, for ~5 minutes of my time, I got something interesting to think about, I know a company (and an industry) better, and as a result of this, will be more prepared should Mr. Market throw me a Hell of a price on this security. After all, the company is well managed and has a great product. It will be a pleasure to watch the future growth of this company.

Disclosure: I do not own shares in any company mentioned here. This is not investment advice. Always do your own research before doing anything that I so much as think about.

No comments: