Businessweek has some interesting analysis...
Hey, if guitar-based music becomes more popular in markets like China, that's a good thing, right? But, is that true? Are the Chinese picking up on all of the subtle elements of the guitar-based music culture?
Fender Musical Instruments Corp., the largest seller of guitars in the U.S., plans to sell as much as $200 million worth of shares in an initial public offering in a bid to bring more Eric Clapton to China.
The company, which increased sales 13 percent to $700.6 million last year, sees growth coming from emerging markets such as China and India as guitar-based music becomes more popular in those nations.
“We intend to extend our reach to a broader global consumer base,” Fender said. The brand is “closely associated with the birth of rock 'n' roll and has a strong legacy in music and in popular culture.”
Take a look at the trailer for Kevin Fritz's film Wasted Orient; it's clear that some are embracing the Spinal Tap aesthetic...
I think that there is no way to know whether the Fender IPO will affect the future quality of the products but, I tend to think that the stock will prosper. It might be a good buy if you can get it immediately after it goes on sale but, it won't take long for the stock to be over-valued as the same cats that decorate their basement rec rooms with $17,000 Custom Shop axes...
and Fender Eric Clapton Signature EC Twinoluxs...
Will no doubt be using their framed Fender stock certificates as wall candy but...all in all; Fender should be strengthened.
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