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Tempted to by Fountain Stock at this price

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Old 02-16-2009, 06:59 PM
  #11
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If thats the current state of the company, how did they acquire Baja?
It was pretty much handed to him by Brunswick. My understanding is that his payment to Brunswick was based on FUTURE engine sales. Meaning a portion of the money he pays for an engine goes to Brunswick for payment for the acquisition of Baja. I bought at like $3 years ago figuring how could it go any lower? It did. But truly how can it go any lower than .12?
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Old 02-16-2009, 07:04 PM
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If thats the current state of the company, how did they acquire Baja?
From their last 10-k (annual report):

On May 28, 2008 the Company borrowed $4 million from the Baja Marine Corporation (“Baja”) to finance the acquisition of certain assets from Baja. This indebtedness is evidenced by a promissory note (the “ Baja Note”) issued to Baja Marine Corporation pursuant to the Asset Purchase Agreement and in connection with the Engine Supply Agreement between the Company and the Brunswick Corporation. The Baja Note is guaranteed by Fountain Powerboat Industries, Inc. and is secured by the assets purchased from Baja and certain replacement assets Baja By Fountain, Inc. acquires or develops in the future, if the assets are used solely to manufacture and sell boats under the Baja name. The Baja Note bears 7% annual interest. No principal or interest is due under the Note until June 30, 2020. At that time, the Note will be cancelled without payment by the Company, if the Company has not defaulted on its obligations to the Brunswick Corporation.

My italics emphasis added - Baja was essentially given to Fountain.
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Old 02-16-2009, 09:08 PM
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Originally Posted by Loan $hark View Post
From their last 10-k (annual report):

On May 28, 2008 the Company borrowed $4 million from the Baja Marine Corporation (“Baja”) to finance the acquisition of certain assets from Baja. This indebtedness is evidenced by a promissory note (the “ Baja Note”) issued to Baja Marine Corporation pursuant to the Asset Purchase Agreement and in connection with the Engine Supply Agreement between the Company and the Brunswick Corporation. The Baja Note is guaranteed by Fountain Powerboat Industries, Inc. and is secured by the assets purchased from Baja and certain replacement assets Baja By Fountain, Inc. acquires or develops in the future, if the assets are used solely to manufacture and sell boats under the Baja name. The Baja Note bears 7% annual interest. No principal or interest is due under the Note until June 30, 2020. At that time, the Note will be cancelled without payment by the Company, if the Company has not defaulted on its obligations to the Brunswick Corporation.

My italics emphasis added - Baja was essentially given to Fountain.
Wow I wish someone would give me something... Besides a hard time!! Where do you find all of this info??
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Old 02-16-2009, 09:24 PM
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Fountain reports drop in 2Q sales Print E-mail
Monday, 02 February 2009 10:51

Fountain Powerboat Industries today reported a 61 percent drop in net sales for its fiscal 2009 second quarter due to the continuing downturn in marine sales that accelerated during the quarter ending Dec. 31.

"The global economic downturn, finance industry collapse and stock market crash had [a] significant detrimental effect on marine markets during the quarter,” said Reginald M. Fountain Jr., chairman, CEO and president, in a statement. “Retail financing for boats tightened, and floorplan financing for boat dealers became very difficult. With dealers reluctant to replenish their inventories and retail sales stymied, orders for offseason production became scarce."

Net sales for the second quarter were $5,839,908, compared to net sales of $15,196,038 for the fiscal 2008 quarter. Net loss for the recent quarter was $3,178,585, or net loss of 73 cents per share, versus a net loss of $765,055, or 16 cents per share, for the year-ago quarter.

Net sales for the first six months of fiscal 2009 were $23,427,947, compared to net sales of $33,245,468 for the first six months of fiscal 2008. Net loss was $3,096,816, or 71 cents per share, compared to a net loss of $491,676, or 10 cents per share, for the year-ago period.

Fountain stock had dropped to 14 cents a share, its 52-week low, as of 10:30 this morning.

"We have been in continuous operation for 30 years and have weathered difficult times in our long history, although none have been this challenging," said Fountain.

Today’s report follows last week’s news that the company’s stock will be suspended from trading on NYSE Alternext US, the successor to the American Stock Exchange.

Nevertheless, Fountain said, “We will weather this downturn as well and come out of this recession stronger than ever. We will continue to improve our product lines and strengthen our distribution channels.”

Click here for the full earnings report.
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Old 02-16-2009, 09:30 PM
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question

if 10,000 people from OSO buy fountain stock at $.12

thats $120 per person

thats 1.2 million in stock, does that make the stock go up, maybe to 24 cents and everyone doubles there $

just wondering, dont really play the market, so im a little dumb
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Old 02-16-2009, 09:38 PM
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[QUOTE=isellpower;2801453]You'll loose that 12 cents for sure. I'm an energy trader so our market is a little different, but the chance of a 12 cent per share company doing anything but filing bankruptcy is slim and none. The chance of a stock under $5.00 not going bankrupt is somthing like 10-15%. Drop to under a dollar and you're in the 1% or less chance of survival. He'll go Ch 11 and take it private. By by 12 cents.....


By by 12 cents..
You'll loose that 12 cents for sure.
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Old 02-16-2009, 09:38 PM
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You'll loose that 12 cents for sure. I'm an energy trader so our market is a little different, but the chance of a 12 cent per share company doing anything but filing bankruptcy is slim and none. The chance of a stock under $5.00 not going bankrupt is somthing like 10-15%. Drop to under a dollar and you're in the 1% or less chance of survival. He'll go Ch 11 and take it private. By by 12 cents.....
Boy aint he right. Can you say Kmart. Ouch. Only thing is, Kmart isn't private. Can you sh-thead Bankrupcy Judge.
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Old 02-18-2009, 02:27 PM
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You would be down 33.33% as of right now! Stocks at $.08!!!
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Old 02-18-2009, 02:48 PM
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Quote:
Originally Posted by Wild View Post
question

if 10,000 people from OSO buy fountain stock at $.12

thats $120 per person

thats 1.2 million in stock, does that make the stock go up, maybe to 24 cents and everyone doubles there $

just wondering, dont really play the market, so im a little dumb
what does it take to own all the oustanding shares? You may have something Randy
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Old 02-18-2009, 03:17 PM
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[QUOTE=RunninHotRacing158;2801655]
Quote:
Originally Posted by isellpower View Post
You'll loose that 12 cents for sure. I'm an energy trader so our market is a little different, but the chance of a 12 cent per share company doing anything but filing bankruptcy is slim and none. The chance of a stock under $5.00 not going bankrupt is somthing like 10-15%. Drop to under a dollar and you're in the 1% or less chance of survival. He'll go Ch 11 and take it private. By by 12 cents.....


By by 12 cents..
You'll loose that 12 cents for sure.
Help me understand, if you own Stock, how can someone take it private and you loose?? I am not a Stock analyst so please educate me.

WILL
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