Steinway News - Must Read!

Posted by: Steve Cohen

Steinway News - Must Read! - 11/05/09 03:58 PM

THIS JUST IN....

Quote:

Steinway Announces Agreement for Private Placement of Common Stock; Will Appoint New Director

WALTHAM, MA - November 5, 2009 - Steinway Musical Instruments, Inc. (NYSE: LVB), one of the world's leading manufacturers of musical instruments, today announced that it has signed an agreement with Samick Musical Instruments Co., Ltd. for a private placement of 1.7 million shares of its ordinary common stock at a price of $16 per share, approximately 37% above the closing market price on October 28, 2009, the date the parties set the purchase price. Steinway intends to use the proceeds of approximately $27 million to retire outstanding debt and for general corporate purposes. Samick was also granted the right to purchase by March 31, 2010 an additional 1.7 million shares of ordinary common stock at an exercise price of $16 per share.

The placement will bring Samick's holdings in Steinway to approximately 1.9 million shares. Steinway's Chairman, Kyle Kirkland, and CEO, Dana Messina, continue to hold 100% of the Company's Class A shares which represent over 80% of the voting power of the total common stock.


In connection with the placement, Mr. Jong Sup Kim, Chairman of Samick Musical Instruments Co., Ltd., will join the Board of Directors of Steinway Musical Instruments bringing the total number of directors to nine.


Dana Messina commented, "I have known Mr. Kim for several years and am very pleased to have a director with his reputation and insight on our board and invested in our future. He has always had a high regard for our products
and is very optimistic about Steinway's future in Asia and other parts of the world. Samick's investment is a clear endorsement of our long term strategy and future prospects."


Kyle Kirkland added, "Given current economic conditions, we've seen several opportunities to increase our market presence in all areas of our industry. Samick's minority investment provides added liquidity, enabling us to move aggressively on opportunities as they arise."

J. S. Kim is considered one of the most successful business leaders in Korea, owning twelve companies in various industries. He is the controlling shareholder of Samick and has served as its chairman for the last seven years where he successfully engineered a turnaround to profitability. Mr. Kim also serves as the chairman of Speco Co., Ltd., one of Korea's leading road building machinery companies. He is a graduate of the prestigious Seoul National University in Seoul, Korea.

Mr. Kim commented, "I believe Steinway Musical Instruments offers tremendous investment value even at a premium to the current market price. The Steinway piano and brand are incomparable worldwide and it is an honor for us to be an investor in the Company. Steinway has great potential throughout the world and is well positioned to capitalize on near term growth opportunities in the Asian piano markets. As financial investors, we look forward to this opportunity to profit from Steinway's world renowned products, proven management and superior market presence."

About Steinway Musical Instruments

Steinway Musical Instruments, Inc., through its Steinway and Conn-Selmer divisions, is one of the world's leading manufacturers of musical instruments. Its notable products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos. Through its online music retailer, ArkivMusic, the Company also distributes classical music recordings. For more information about Steinway Musical Instruments, Inc. please visit the Company's website at www.steinwaymusical.com.


"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This release contains "forward-looking statements" which represent the Company's present expectations or beliefs concerning future events. The
Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and ncertainties which could cause actual results to differ materially from those indicated in this release. These risk factors include the following: changes in general economic conditions; reductions in school budgets; increased ompetition; work stoppages and slowdowns; ability to successfully consolidate band manufacturing; impact of dealer consolidations on orders; ability of dealers to obtain financing; exchange rate fluctuations; variations in the mix of products sold; market acceptance of new products; ability of suppliers to meet demand; concentration of credit risk; fluctuations in effective tax rates resulting from shifts in sources of income; and the ability to successfully operate acquired businesses. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.

Paul Majeski

Music Trades Magazine

paul@musictrades.com


You heard it here first!
Posted by: pianoloverus

Re: Steinway News - Must Read! - 11/05/09 04:07 PM

duplicate
Posted by: pianoloverus

Re: Steinway News - Must Read! - 11/05/09 04:09 PM

So what does this mean for those of us who don't understand the implications of this kind sale or what a private placement menas?

Good or bad new for Steinway? for Samick? What would motivate Steinway/Samick to do this?

What effect would Samick owning 1.7 million share of Steinway have now or in the future?
Posted by: Piano*Dad

Re: Steinway News - Must Read! - 11/05/09 04:11 PM

Prepare for the new Steinicks in showrooms next year. smile
Posted by: BPrentice

Re: Steinway News - Must Read! - 11/05/09 04:11 PM

You beat me to it, Steve!
Posted by: Arnie Eagle

Re: Steinway News - Must Read! - 11/05/09 04:13 PM

Well, Samick is now on the board. But bottom line, I think it's good for Samick, in the long run, to learn from Steinway's process, while it is good for Steinway in the short run, to have some money to take care of debt.
Posted by: Roy123

Re: Steinway News - Must Read! - 11/05/09 04:41 PM

Call me cynical, but I suspect Steinway has much more to learn from Samick in terms of manufacturing process and quality control.
Posted by: Norbert

Re: Steinway News - Must Read! - 11/05/09 04:41 PM

Boesendorfer - Yamaha/ Steinway - Samick/ Seiler - Samick/ Schimmel - ??/

We obviously are entering a new age.

Looking back, Bechstein's previous alliance with Samick which at that time was touted with similiar worlds, didn't go over too well.

Let's see how this one will work out.

Wishing all parties best of luck!

Norbert
Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/05/09 04:49 PM

I think it is likely good news for both Steinway and Samick.

Steinway gets to retire debt, almost always good. Steinway's stock was depressed (it is up well over 5% on the news, although the market is up 2 1/2% overall). So SMC got a good value for its investment.

I would suspect that over time Samick may become the manufacturer of Essex and, quite possibly Boston...another plus for SMC. A 20% or so equity position has a lot of sway on a company!

I don't want to appear as if I have a great deal of "inside information" on this. Although I am sure I will in a day or so, once my sources have a chance to digest and communicate!
Posted by: Arnie Eagle

Re: Steinway News - Must Read! - 11/05/09 05:36 PM

May be a fair point, Roy, but I was talking about the quality of the instrument, not the variability in its manufacture.
Posted by: turandot

Re: Steinway News - Must Read! - 11/05/09 05:45 PM

Originally Posted By: Steve Cohen
Steinway's stock was depressed (it is up well over 5% on the news, although the market is up 2 1/2% overall). So SMC got a good value for its investment.

I would suspect that over time Samick may become the manufacturer of Essex and, quite possibly Boston...another plus for SMC. A 20% or so equity position has a lot of sway on a company!


LVB stock prices in the past 12 months range from under $7 to almost $30. I don't know about the good value of $16. You or I or anyone else could have bought under $14 today even with the recent bump, so we could have gotten a better value than SMC did. grin

I don't know about a lot of sway either. These are not Class A shares where the voting power is concentrated, so direct input into decisions is limited.

LVB posted a loss in the last quarter. An annual loss is anticipated for 2009. Production of pianos has continued to decline. Band instrument sales have been hammered by the elimination of US public school music programs and loss of purchasing power for those still operating. In terms of leisure products in general, very few stock analysts are even following the segment since nothing suggests an uptick.

IMO this is not about monetary profit on SMC's stock investment, and it's not about supplanting Kawai, Young Chang, or Guangzhou as suppliers either. It's about finding some new markets for Steinway and SMC outside traditional markets that have become increasingly stagnant.

Where do you find large-scale emerging affluence? Hint, it's not in Korea and it's not in the US. This really pits Samick/Steinway against Yamaha/Bosendorfer in competition for China.

Who has the edge? Corporate performance over decades suggests Yamaha. Chinese cultural factors of trust versus distrust favor a Korean suitor over a Japanese.
Posted by: pno

Re: Steinway News - Must Read! - 11/05/09 06:14 PM

Steinway & Sam
Posted by: Basil

Re: Steinway News - Must Read! - 11/05/09 06:32 PM

groan....
Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/05/09 07:34 PM

Originally Posted By: turandot


IMO this is not about monetary profit on SMC's stock investment, and it's not about supplanting Kawai, Young Chang, or Guangzhou as suppliers either. It's about finding some new markets for Steinway and SMC outside traditional markets that have become increasingly stagnant.

Where do you find large-scale emerging affluence? Hint, it's not in Korea and it's not in the US. This really pits Samick/Steinway against Yamaha/Bosendorfer in competition for China.

Who has the edge? Corporate performance over decades suggests Yamaha. Chinese cultural factors of trust versus distrust favor a Korean suitor over a Japanese.


Again, I am speculating but...

A 20% interest, regardless of the class of stock and a seat on a 9-member board certainly allows for significant influence.

Samick is already well positioned in China.

I think this move IS profit motivated.

As you point out, Japanese companies have a real uphill battle selling in China (and Korea). I've been there and to many the "war crimes" happened yesterday!
Posted by: Norbert

Re: Steinway News - Must Read! - 11/05/09 07:57 PM

Wondering how people would react if one day a Chinese company will be buying shares into an American marque.

Going by how many Oriental looking men with black briefcases have recently been spotted making their way through the German industry jungle, chances are we ain't seen nothing yet over here....

Norbert
Posted by: turandot

Re: Steinway News - Must Read! - 11/05/09 08:05 PM

Quote:
Steve Cohen
Again, I am speculating but...
A 20% interest, regardless of the class of stock and a seat on a 9-member board certainly allows for significant influence.

Samick is already well positioned in China.

I think this move IS profit motivated.


Well, I'm speculating too of course, but not on those LVB shares just yet. smile If you follow the money, it's leads to SMC, not to LVB.

Hey, if you're right and this opens Steinway Musical Instruments' board room to some fresh thinking, great! But the profit has to come from somewhere, and more manufacturing capacity will need to be utilized to get there. That's why China seems like a no-brainer. Why don't you jump in with a order for ten-thousand shares, and maybe I'll follow!
Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/05/09 08:15 PM

Own some LVB stock and made money on it......today!!!
Posted by: bitWrangler

Re: Steinway News - Must Read! - 11/05/09 08:21 PM

Originally Posted By: pianoloverus
So what does this mean for those of us who don't understand the implications of this kind sale or what a private placement menas?

Good or bad new for Steinway? for Samick? What would motivate Steinway/Samick to do this?

What effect would Samick owning 1.7 million share of Steinway have now or in the future?


Private placement simply means that S&S sold the shares directly to Samick (i.e. they didn't have to convince share holders to sell their shares).

Originally Posted By: Steve Cohen

Again, I am speculating but...

A 20% interest, regardless of the class of stock and a seat on a 9-member board certainly allows for significant influence.

Samick is already well positioned in China.

I think this move IS profit motivated.

As you point out, Japanese companies have a real uphill battle selling in China (and Korea). I've been there and to many the "war crimes" happened yesterday!


Actually the class of stock is quite important. First, the article says that the Mssrs Messina and Kirkland still posses 80% of the voting power due to their Class A shares. That means that even if Samick went ahead and purchased all 3.4m shares (about 40% of all common shares), that they would still only have about 8% of the votes, sizable, but not exactly earth shattering. It's also interesting to note that Samick is apparently getting no Class A shares, that means that if S&S were to go belly up, that Samick would be left with nothing. This then can provide some additional insight into the mindset of Samick and what they expect to get out of this deal.

[edit]Oh and S&S is up about 5% in after hours trading. Samick is down about 2%[/edit]
Posted by: Norbert

Re: Steinway News - Must Read! - 11/05/09 09:18 PM

Somehow my inner feelings tell me that "stocks,shares and making money" are not what many buyers of fine instrumets have really in mind - or are interested in.

Nobody lit the Christmas tree in Vienna when Boesendorfer - an age old Austrian "institution" - was sold to outsiders last year.

Having a highly respected national marque such as Steinway no longer 100% owned by American interests, in the mind of many, may well produce a number of different thoughts and emotions.

Strangely, this business seems all about 'making money' - or is it?

Norbert frown
Posted by: AJB

Re: Steinway News - Must Read! - 11/06/09 03:34 AM

I don't know. When I read this on the financial news wires yesterday what crossed my mind is that with so little voting influence it looks like glorified loan finance.

In effect swap a bit of bank debt for minimally influential stock, but agree to work together to penetrate deeper into the Chinese market. I find the set up as an alternative to the Yamaha/Boesendorfer arrangement quite compelling.

Many "name" piano companies have had similar investment arrangements in the past that have come and gone.
Posted by: Numerian

Re: Steinway News - Must Read! - 11/06/09 08:19 AM

LVB is not just about pianos, even though it capitalizes on one of its brands and calls itself Steinway Musical Instruments. Pianos are only slightly more important to sales and gross margin than the Conn-Selmer line of band instruments, Ludwig drums, Messer, etc.

This is also a company that continues to struggle financially, with a pot load of high yield long term debt, too much short term debt, and what looks like too much trade finance as well. This deal with Samick allows LVB to retire some expensive debt and improve their debt/equity ratio, without LVB giving up any control in the form of voting rights. Plus they probably get some synergistic entree into China, I would guess mostly for their band instruments.

The company makes no secret of the fact that piano sales are down worldwide and will remain depressed. They've reduced production to get inventories in line with a lower level of sales and they've let people go. In this respect they are no different from thousands of medium size companies worldwide that were over-leveraged, but the difference is they acknowledge their piano product line is facing problems.

Another way to look at this is that high end pianos benefited significantly from the housing bubble around the world, and the free credit that was being passed out by reckless banks. Most customers otherwise would not have had $75,000 in cash to buy one of these instruments. Steinway's top of the line grand piano sales will be stagnant for as long as it takes housing and/or consumer incomes to recover, which could be years and years.

Overall, no company wants to sell equity just to retire debt, even if voting rights aren't affected. This isn't a sign of strength, it's a sign of weakness for Steinway Musical Instruments and for the markets and products it represents.
Posted by: Stevester

Re: Steinway News - Must Read! - 11/06/09 09:41 AM

Mr. Kim is paying a significant good faith premium as an introduction into Steinway. I certainly wish both Mr. Kim and Steinway the best of luck with this joint venture.

While I am surprised he is receiving no Class A shares I am sure a man of his accomplishments knows what he is doing.

Long live Steinway, they can build a great piano.
Posted by: FogVilleLad

Re: Steinway News - Must Read! - 11/06/09 03:13 PM

Originally Posted By: AJB
In effect swap a bit of bank debt for minimally influential stock, but agree to work together to penetrate deeper into the Chinese market. I find the set up as an alternative to the Yamaha/Boesendorfer arrangement quite compelling.
And Samick's line will have the aura of its association with the Steinway name - sort of an extended family of pianos.
Posted by: gmf001

Re: Steinway News - Must Read! - 11/07/09 04:47 PM

Originally Posted By: Norbert
Wondering how people would react if one day a Chinese company will be buying shares into an American marque.



well, it's happened in other industries. Think Lenovo buying IBM's PC business including the ThinkPad laptop business and brand. The sky didn't fall thru that transition. Chinese companies also own or have sizeable investments in many resource companies.
Posted by: newgeneration

Re: Steinway News - Must Read! - 11/24/09 08:32 PM

What about Steinway in Hamburg?
It is an entirely different entity from the American Steinway, correct?
What are they thinking in all of this?
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/24/09 08:34 PM

"What about Steinway in Hamburg?
It is an entirely different entity from the American Steinway, correct?"

What on earth would make you think that?
Posted by: Norbert

Re: Steinway News - Must Read! - 11/24/09 09:31 PM

Personally I have come to believe that companies, including piano companies, have a distinct advantage to be run by one head instead of corporations with many heads and/or variable interest groups.

It was one of the great successes of postwar Germany that the less complicated management happened to be, the more work got actually done.

Many compamies then survived and later even thrived because of the highly focused interest by one head instead of two, three or more parties, all breathing down each other's necks.... [wifes excluded... ha]

These are tough times for many companies and the [healthy] survivors in future will be those with 100% undivided focus on highest possible quality at very best possible prcie.

No squabbling, infighting, time wasting or power struggles.

Perhaps that's why pianoloverus and me could never run the same company....

Norbert grin
Posted by: emsgdh

Re: Steinway News - Must Read! - 11/24/09 10:04 PM

OK, help me out guys.

Are Bechstein out of business ? Did Samick pull out at some point ?

What happened ?

Please tell.

Karl Watson
Staten Island, NY
Posted by: SCCDoug

Re: Steinway News - Must Read! - 11/24/09 10:27 PM

As far as I know Samick still has a 30% share of Bechstein and there continues to be a strong working relationship between the two companies.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:39 PM

Speaking as both a piano aficionado and investment aficionado smile I have just one contribution to make here:

Does everybody know what Steinway's ticker symbol (LVB) comes from?

When I first saw it, I had no idea. I had to ask.....
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:39 PM

Originally Posted By: pno
Steinway & Sam

good one! ha
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/24/09 10:42 PM

Originally Posted By: MarkCannon
Speaking as both a piano aficionado and investment aficionado smile I have just one contribution to make here:

Does everybody know what Steinway's ticker symbol (LVB) comes from?

When I first saw it, I had no idea. I had to ask.....


How about Ludwig van Beethoven?
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:43 PM

Originally Posted By: pianoloverus
So what does this mean for those of us who don't understand the implications of this kind sale or what a private placement means?

Good or bad new for Steinway? for Samick?....

As an old-timer, I'm still reeling from when CBS bought Steinway or whatever. I didn't really understand what that deal was (it was around 1987 or so), but it worried me. After that, I stopped thinking about the "corporate" aspects, because I figured I'd rather not think about it.

BTW........Does anyone know what ever became of the CBS connection?
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:44 PM

Originally Posted By: Steve Cohen
Own some LVB stock and made money on it......today!!!

You are now officially our investment guru. smile
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/24/09 10:46 PM

Mark

I will tell you if you will teach me to play Opus 2 No. 1!!

Scriabin - omigod!
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:46 PM

Originally Posted By: Norbert
....Strangely, this business seems all about 'making money' - or is it? frown

When something is a publicly traded company, it's pretty much obligated to that.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:48 PM

Originally Posted By: Furtwangler
Originally Posted By: MarkCannon
Speaking as both a piano aficionado and investment aficionado smile I have just one contribution to make here:

Does everybody know what Steinway's ticker symbol (LVB) comes from?

When I first saw it, I had no idea. I had to ask.....


How about Ludwig van Beethoven?

Bingissimo!!! smile
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 10:49 PM

Originally Posted By: Furtwangler
Mark

I will tell you if you will teach me to play Opus 2 No. 1!!

Scriabin - omigod!


I think we might have a deal here -- I teach you a stupid Scriabin etude, you make me millions. ha
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/24/09 10:54 PM

Worth it - to me, anyway.

The CBS connection was severed when they sold Steinway to the Birmingham brothers, who, I understand, did their level best to continue running the company into the ground, following CBS's footsteps.

The company was subsequently sold again to the present owners. It may not be widely known that the top 2 executives control some 90%+ of the Class A voting stock (from memory - check my numbers).

In my opinion LVB is a great short here.
Posted by: nylawbiz

Re: Steinway News - Must Read! - 11/24/09 11:02 PM

Originally Posted By: MarkCannon
Speaking as both a piano aficionado and investment aficionado smile I have just one contribution to make here:

Does everybody know what Steinway's ticker symbol (LVB) comes from?

When I first saw it, I had no idea. I had to ask.....


Named after some hack composer, Ludwig Von Beethoven, or some name like that smile
Posted by: Nick Mauel

Re: Steinway News - Must Read! - 11/24/09 11:05 PM

edit : deleted

not realizing others have posted answers to same question.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 11:11 PM

Originally Posted By: Furtwangler
.....The CBS connection was severed when they sold Steinway to the Birmingham brothers, who, I understand, did their level best to continue running the company into the ground, following CBS's footsteps.

The company was subsequently sold again to the present owners. It may not be widely known that the top 2 executives control some 90%+ of the Class A voting stock (from memory - check my numbers).

In my opinion LVB is a great short here.

Not that we should necessarily run and short LVB smile but, speaking as a new person on this site, I'm awed again and again at the level of knowledge and discussion here.

CBS seems to have made a specialty of that. In the '60's they bought the NY Yankees, and pretty much ran them into the ground. That's why George Steinbrenner and his group were able to buy the team for what now sounds bargain-basement: $10 million. The team is now probably worth over a billion.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 11:12 PM

Originally Posted By: nylawbiz
Named after some hack composer, Ludwig Von Beethoven, or some name like that smile

I had no clue until someone told me. ha
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 11:12 PM

Originally Posted By: Nick Mauel
edit : deleted

not realizing others have posted answers to same question.

Hey, it doesn't hurt to say it again. smile

Ludwig van Beethoven! Ludwig van Beethoven!!! :-)

P.S. I bet Schroeder would have got it..... ha
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 11:16 PM

P.S. If I were ticker-symboling a company like Steinway, I would have picked JSB, for Bach.
Or, if I wanted to emphasize the piano aspect, FC or CHO for Chopin.

But I don't have too much complaint about LVB. It's pretty cool.
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/24/09 11:54 PM

Hey - what about ANS?

Alexander Nikolayevich Scriabin

Is he chopped liver all of a sudden? Ok, ok - so he was a little bit nuts.

You coulda helped him, Doc.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/24/09 11:58 PM

Originally Posted By: Furtwangler
Hey - what about ANS?

Alexander Nikolayevich Scriabin

Is he chopped liver all of a sudden? Ok, ok - so he was a little bit nuts.

You coulda helped him, Doc.

We are now in serious danger of hijacking the thread. ha
But I can't pass up the opportunity to say......If a shrink had "helped" Scriabin (or Handel, who was supposedly bipolar; or Mozart who was a wiseguy; or Chopin who sort of brooded, at least according to cliche; or Beethoven who probably didn't "get any" enough) smile if somebody had "helped" them, would it really have been HELPING them?

Discuss amongst yourselves, I'm all verklempt. ha
Posted by: Furtwangler

Re: Steinway News - Must Read! - 11/25/09 12:03 AM

Touche'
Posted by: Marty Flinn

Re: Steinway News - Must Read! - 11/25/09 02:14 PM

At the time CBS purchased Steinway & Sons the company was on its last legs. The family had been taking profit from the company and not reinvesting in raw materials and infrastructure as it had in decades past. It was only CBS's infusion of opperating capital the allowed this precious American icon to continue to build pianos. Production increased slightly and quality improved under CBS watch. I was selling Steinways during this period.

CBS began a period of divestiture of non-media related investments as it wanted to return to its core business. The conglomerate never had the hands on management style necessary to enable S&S to truly flourish. CBS hardly "ran S&S into the ground."

The Birmingham brothers stepped up and purchased the company
at a time of low morale and slipping quality control that occured during the prolonged sale. They assembled a top notch management team of industry professionals and brought production and quality back up. They also invested again in the critical raw materials. The notion that the Berminghams "ran the company into the ground" is unfounded. I was selling Steinways during this period and lived the experience.
Posted by: nhpianos

Re: Steinway News - Must Read! - 11/25/09 07:43 PM

Originally Posted By: MarkCannon

Does everybody know what Steinway's ticker symbol (LVB) comes from?


Ludvig Van Beethoven
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/26/09 12:19 AM

THANKS for that history regarding CBS and Steinway.
Posted by: turandot

Re: Steinway News - Must Read! - 11/26/09 11:24 AM

Originally Posted By: MarkCannon
Originally Posted By: Steve Cohen
Own some LVB stock and made money on it......today!!!

You are now officially our investment guru. smile


I doubt that Steve C. is a day trader, so I assume he meant here that the value of the Steinway stock in his vast Buffettesque portfolio had increased on that given day. grin

A lot would depend on when Steve picked up his shares. If he bought in early April, 2009, he would be looking good (for the moment).

http://bigcharts.marketwatch.com/quickch...p;x=68&y=18

If he bought in 1997 he would still be underwater and have experienced quite a roller coaster ride.

http://bigcharts.marketwatch.com/quickch...q=2&time=20

Going back to the roots of this thread, one could say go far, so good. There's actually one leisure analyst following LVB and giving a Buy rating expecting a decent 13.2 PE in 2010.

LVB reported stronger than expected quarterly earnings in November and anticipates modest profitability in the coming year. The caveat is that the earnings outlook is based on reduced expenses (probably debt retirement from the SMC capital infusion) and even lower production levels which will obviously result in loss of gross revenues.

http://www.steinwaymusical.com/images/newsfiles/134391Steinway%20Reports%20Q3%202009%20Results.pdf

Year over year comparisons to 2008 (same reference as above--scroll down) show the reality of lost revenues.

In terms of any positive long-term outlook, the words of Mr. Kim himself are illuminating:

"Steinway has great potential throughout the world and is well-positioned to capitalize on near-term growth opportunities in the Asian piano markets"

Looking at Mr. Kim's track record, the savvy of present Korean corporate leaders in general, and taking into account the confidence that Mr. Kim has shown in Steinway's present management by not insisting on any slice of class A shares, it is fair to say that Mr. Kim sees value in his decision and knows what he is doing.

Let's revisit this thread on a monthly basis and follow Steve's money. grin



Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/26/09 12:32 PM

Let me give you a hint....glug-glug-glug!

Also, as part of the history...CBS had acquired quite a nice musical company family including Lowrey Organ, Gulbransen pianos and, if I remember correctly Conn Organ and Gibson.

The sold them all to raise cash to fight off a bid by Ted Turner in a hostile takeover attempt. He was spurned and went on to found CNN.

At least that's what I think happened.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/26/09 12:58 PM

Originally Posted By: turandot
Originally Posted By: MarkCannon
Originally Posted By: Steve Cohen
Own some LVB stock and made money on it......today!!!

You are now officially our investment guru. smile


I doubt that Steve C. is a day trader, so I assume he meant here that the value of the Steinway stock in his vast Buffettesque portfolio had increased on that given day. grin


I knew that......Maybe I'm too new here to be doing silly sarcastic posts like that. smile

So.....in addition to investment pointers, we need "member-posting stochastics" ha --- calculations on length of membership and number of posts we need before we can do whatever kind of stupid post. smile
Posted by: turandot

Re: Steinway News - Must Read! - 11/26/09 01:16 PM

Originally Posted By: MarkCannon
Originally Posted By: turandot
Originally Posted By: MarkCannon
Originally Posted By: Steve Cohen
Own some LVB stock and made money on it......today!!!

You are now officially our investment guru. smile


I doubt that Steve C. is a day trader, so I assume he meant here that the value of the Steinway stock in his vast Buffettesque portfolio had increased on that given day. grin


I knew that......Maybe I'm too new here to be doing silly sarcastic posts like that. smile

So.....in addition to investment pointers, we need "member-posting stochastics" ha --- calculations on length of membership and number of posts we need before we can do whatever kind of stupid post. smile


There was nothing stupid or sarcastic about your post that I can see. I replied to it because it reminded me of how the thread got started.

Length of membership or post count mean nothing IMO.
Posted by: Mark_C

Re: Steinway News - Must Read! - 11/26/09 01:19 PM

Originally Posted By: turandot
.....There was nothing stupid or sarcastic about your post that I can see.....

But, yes there was -- it was completely sarcastic!
I didn't mean in any way that making money with LVB on that day made him our investment guru.
Nor that it didn't. smile

It was just a laugh line. Which missed. ha
Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/27/09 09:45 AM

Originally Posted By: turandot

Length of membership or post count mean nothing IMO.


I disagree. Those who have been here a long time and have a lot of posts have all learned much in the process. We been thru the flame wars, grey market arguments, pricing debates, etc. and have had the opportunity to learn much about many regulars so we can better evaluate their "positions".

One's prospective evolves here over time and in reading the reponses to our posts.
Posted by: turandot

Re: Steinway News - Must Read! - 11/27/09 10:07 AM

Originally Posted By: Steve Cohen
Originally Posted By: turandot

Length of membership or post count mean nothing IMO.


I disagree. Those who have been here a long time and have a lot of posts have all learned much in the process. We been thru the flame wars, grey market arguments, pricing debates, etc. and have had the opportunity to learn much about many regulars so we can better evaluate their "positions".

One's prospective evolves here over time and in reading the reponses to our posts.


I disagree as well! Whoever the hack was that said that should have chosen his words more carefully. grin

Probably what that clown meant to say was that post count and length of membership alone do not guarantee useful post content, and that there is no reason a new member cannot contribute significantly to a thread topic. IMO the writer's intent was to encourage Mark Cannon to contribute to a significant topic. Obviously, that did not happen.

Btw, what does "glug, glug, glug" mean?
Posted by: Steve Cohen

Re: Steinway News - Must Read! - 11/27/09 10:21 AM

You disagree with you??? I'm not a schizophrenic...and neither am I! grin grin

The "glug" comment meant I am underwater with my LVB stock.
Posted by: turandot

Re: Steinway News - Must Read! - 11/27/09 10:52 AM

Yeah! I really do feel like kicking myself on that response. The reason I posted those links to the Steinway stuff yesterday was that the transaction is a barometer of the whole industry. You can read it as hope or desperation depending on your perspective. SMC's rescue of Seiler is interesting as well, but Steinway's disclosure responsibilities as a public company make it much juicier.

It doesn't seem like anyone here wants to discuss it. Let's get back to it when fourth quarter results are posted. Maybe you won't be underwater then.