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Cessna profits plunge......OT (or is it?)



 
 
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  #1  
Old February 2nd 04, 01:48 PM
Dave Stadt
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"Dude" wrote in message
...
It seems to me that there must be a lot of risk in the small piston plane
market.

This means that a company without a high degree of ability to accept risk
will eventually fail a critical gut check. The question is - Can a public
company stand the risks it takes to be number one?

I believe Cessna simply will not do what it takes to win in this business
because it has become too risk averse. It may survive, but I don't see it
thriving. Strangely, its the same attitudes that kept them in business

all
this time, that may now be their downfall. Until the recent entries of

new
players, Cessna was king.

Cirrus has done well, and much of it is due to the passion of the

founders.
I may be mistaken, but I believe that the investors are likewise

passionate.
They are not presently trading the stock on an exchange, are they? If

not,
then the company is still reasonably closely held.


Cirrus is riding the new plane bubble. Time will tell ahow they do and they
will need to come out with something new when the market for the present
model becomes saturated. Certainly one would rather be in Cessnas financial
position than that of Cirrus. Cirrus had to sell their soul to stay in
business.




  #2  
Old February 2nd 04, 04:11 PM
Dude
external usenet poster
 
Posts: n/a
Default

Wow, with all this bad news about Cirrus, should buyers be concerned?

I thought they had to be doing well selling so many planes. I still think
the investors have got to be aviation fans more than Wall Street types, but
we may never know.

As for flight schools, it seems that Diamond is getting more and more of
that business, but I hear the owner has some serious pockets.


"Dave Stadt" wrote in message
...

"Dude" wrote in message
...
It seems to me that there must be a lot of risk in the small piston

plane
market.

This means that a company without a high degree of ability to accept

risk
will eventually fail a critical gut check. The question is - Can a

public
company stand the risks it takes to be number one?

I believe Cessna simply will not do what it takes to win in this

business
because it has become too risk averse. It may survive, but I don't see

it
thriving. Strangely, its the same attitudes that kept them in business

all
this time, that may now be their downfall. Until the recent entries of

new
players, Cessna was king.

Cirrus has done well, and much of it is due to the passion of the

founders.
I may be mistaken, but I believe that the investors are likewise

passionate.
They are not presently trading the stock on an exchange, are they? If

not,
then the company is still reasonably closely held.


Cirrus is riding the new plane bubble. Time will tell ahow they do and

they
will need to come out with something new when the market for the present
model becomes saturated. Certainly one would rather be in Cessnas

financial
position than that of Cirrus. Cirrus had to sell their soul to stay in
business.






  #3  
Old February 2nd 04, 06:08 PM
TaxSrv
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Posts: n/a
Default

Dude wrote:

Wow, with all this bad news about Cirrus, should buyers be

concerned?

They shouldn't be. The type certificate, documentation, and tooling
are worth a lot of money. Were the present owners ever to sell,
someone else comes in with eagerness, and the existing product base
must be supported. If it follows the model of the Grumman AA-5x's,
that means acquire, raise price significantly, run into troubles, sell
out, new company raises price even more. Current FAA registrations
show only about 16 in U.S. ownership other than the new Tiger
Aircraft, after more than two years of production. Arguable reason -
price?

Fred F.

 




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