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JGT914

Voxx under fire for poor quarter

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Following another VOXX International Corporation poor quarterly performance, and its stock price down sharply, some analysts recently questioned if it's time to consider liquidating the company and selling off profitable assets as the breakup value could exceed the current $3.60 share price. This is quite the quarterly earnings transcript. Would urge you to read it all. What happens on Wall Street can impact what happens in Hope, like it or not.

 

https://finance.yahoo.com/news/edited-transcript-voxx-earnings-conference-011420171.html

 

 

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Skimmed it, and it looks like it wasn't Klipsch that hurt their bottom line.

 

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12 minutes ago, JohnJ said:

Skimmed it, and it looks like it wasn't Klipsch that hurt their bottom line.

 

 

=== then if selling profitable assets comes to play that might well make the Klipsch brand that much more appealing to a suitor —

- they look for the Crown Jewels not the duds —

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I would like to see Klipsch prosper and for it to have a corporate parent capable of providing the resources to swim in a crowded lake. However, I continue to be baffled at the lack of retail presence in major population centers.  Granted, a lot of product seems to be sold via guerrilla marketing and/or by heavily discounted mail order.  Maybe that is by design.

 

 

 

 

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11 hours ago, JGT914 said:

I continue to be baffled at the lack of retail presence in major population centers

 

Every city with a population of over 600,000 or so should have a Klipsch dealer with demo capability, unless there is a city with Klipsch nearby.  That's the way it used to be.  San Francisco/Oakland/Berkeley had 8 between them, when the population was much smaller.  I know, the Kids are into low-fi with earbuds, but if they could wander into a store that was demoing Heritage with a smattering of Reference, they might change their preference.  ...And ... if theaters using Klipsch had a "Speakers by Klipsch"  banner, like they used to have for Dolby Stereo -- several of my friends had not heard of Dolby until they walked under that banner at showings of Star Wars, or the like.

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2 hours ago, garyrc said:

And ... if theaters using Klipsch had a "Speakers by Klipsch"  banner

 

Very good point.  The name recognition factor would be colossal.

And young people do still go to movies, even if the movies suck.

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Tarantino and Nolan saved the once mighty Kodak... maybe we need a similar thing for the Klipsch brand.

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Most bean counters look at advertising budgets just like they look at maintenance budgets. They cost money they don't make money because you cant define precisely what the end result is. They prefer these two departments get funded by Unicorn farts and not by robbing their profit making departments. Of course the salaries of these valuable MBA CPA corporate assets always rise because the bad decision making department makes a profit. Get it?

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Most bean counters are accountants.  As an MBA in finance I (and we) know better.  Well, most.  There are some finance bean counter types (too many really).  Advertising and R&D drive the boat.  You did say CPA which shows we are on the same page.

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Advertising sure seems to help Blose.

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30 minutes ago, JohnA said:

Advertising sure seems to help Blose.

Seems to always be a tug of war between advertising and quality of the product, rarely do you see massive marketing with high quality products, but you will see tons of mediocre products that buy their market share, and then there are the companies that try and do both, Pella comes to mind, that have some excellent products but due to the marketing and distribution plan, the price gets out of touch with the rest of the market that has comparable quality.  Never ending battle for companies that are mid size and can't define their specific niche and manage it well.

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Laying off people to help the companies bottom line is never good for business.

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Stock price hit a one year low yesterday of $3.50 a share and share price has declined 37% in the past year during a time of near unprecedented prosperity for the US business community. VOXX now has a market cap of $84 million.  The stock hit an intraday high of $6.25 on July 10, 2018.

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As the saying goes, cheap stocks are cheap for a reason.

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I imagine the tariffs aren't helping and American brands are suffering abroad in the current climate. That's my take.

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On 5/30/2019 at 1:43 PM, JGT914 said:

Following another VOXX International Corporation poor quarterly performance, and its stock price down sharply, some analysts recently questioned if it's time to consider liquidating the company and selling off profitable assets as the breakup value could exceed the current $3.60 share price. This is quite the quarterly earnings transcript. Would urge you to read it all. What happens on Wall Street can impact what happens in Hope, like it or not.

 

https://finance.yahoo.com/news/edited-transcript-voxx-earnings-conference-011420171.html

 

 

That's why I call them "anal ysts".

It's always the wrong investment decision to sell your winners and keep your losers when things are down.

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In my humble opinion, Klipsch should have started their own audio industry "group" a long, long time ago. They should have bought Mark Levinson or McIntosh when those companies came up for sale. Either one are great brand names and match great with Klipsch.

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Well, that's what Acurus and Aragon were supposed to be, but something went wrong. 

 

 

 

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Any hints that Voxx might Sell Klipsch?  They have agreed to sell a German subsidiary.

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On 6/20/2019 at 3:09 PM, JohnA said:

Well, that's what Acurus and Aragon were supposed to be, but something went wrong

 

 

 

 

Yes. Quite right John.

 

And Acurus and Aragon were (are?) excellent products but they are not McIntosh or Mark Levinson (brand names).

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