As I write this on Wednesday, December 19th the stock market has closed down 351.98 points or nearly 1.5% to its lowest level of the year, according to CNBC. The broader S&P 500 Index also closed at a 2018 low. But as bad as this news is, perhaps even more concerning are two key indicators for the housing market – single-family housing starts and homebuilder sentiment – both of which showed disappointing results.
News
Gibson’s Speedy Bankruptcy Exit Hits a Big Roadblock
I have to admit, Strata-gee was considering moving on from its Gibson Brands (Gibson Guitar) coverage, first started in 2012 when the company made several acquisitions as part of an ill-advised foray into the consumer electronics business. As delineated in our copious coverage, Gibson CEO Henry Juszkiewicz turned to OPM (other people’s money) loading the company up with over half a billion dollars in debt to pursue a business in which the company had no expertise…ultimately resulting in Gibson’s bankruptcy filing in May of this year.
Gibson’s major creditors banded together, put together what some would call a pre-packaged bankruptcy plan and looked as though they would exit bankruptcy late November/early December. They were wrong. As they tried to power out of bankruptcy, they hit a brick wall – the United States Trustee who has filed a serious objection to their motion to exit bankruptcy.
Now what? See what the U.S. Trustee objects to in Gibson’s plans… [Read more…] about Gibson’s Speedy Bankruptcy Exit Hits a Big Roadblock
International Sales Manager Appointed at MSE Audio
Overland Park, KS-based MSE Audio, parent company of Phase Tech, Rockustics, Induction Dynamics, dArts Theater, and more, announced the appointment of James McManus as its new International Sales Director. This new appointment takes effect immediately.
See more on this role at MSE Audio… [Read more…] about International Sales Manager Appointed at MSE Audio
Gibson Says, Sorry Memphis, We’re Outta Here
Just a matter of months ago, Gibson Brands management assured the town elders of Memphis, TN that the company remained committed to the vibrant music community in Memphis and that they were looking for new digs somewhere within that community. But that was then and this is now – the company was basically taken over by KKR and now the company has decided to vacate Memphis, moving their group there to Nashville.
See more on the incredible shrinking Gibson… [Read more…] about Gibson Says, Sorry Memphis, We’re Outta Here
James Loudspeaker: Go Big AND Go Home
Creating & Stocking New Soundbars for Larger 75-Inch TVs
James Loudspeaker, the innovative specialty manufacturer of custom-created loudspeakers targeted at the residential and commercial custom integration channel, announced that they will create, build, and stock a new soundbar product designed to be perfectly sized for increasingly popular larger TVs up to 75-inches. By keeping this new product in stock, integrators will have quick access to a more affordable pre-built solution…a win-win for the integrator and for their client.
See more on James Loudspeaker’s new soundbar solution for larger TVs… [Read more…] about James Loudspeaker: Go Big AND Go Home
CEDIA Admits Membership Declined in 2018
‘We Do Anticipate Membership Will Be Down in 2018’
Last week, I posted an extensive report on CEDIA’s annual State-of-the-Association presentation which took place last month via a webinar for members. Certain staff and board members offered a long and detailed presentation on the many aspects of the Association’s activities in 2018. As I said then, it at times felt more like a sales pitch, than a report to members, but nonetheless they did have much to talk about.
However, my antenna went up when a chart of the number of members was shown, seeming to indicate a signficant decline. I followed up with CEDIA after the presentation for clarification – and now we know – CEDIA membership has most likely declined in 2018.
See what I learned about the state of CEDIA membership in 2018… [Read more…] about CEDIA Admits Membership Declined in 2018
Monster Sales Declines & Losses Continue
Sales Drop 30% But Losses Narrow in Recent Fiscal Quarter Report
Monster Products Inc. (formerly Monster Cable) filed their latest quarterly results with the SEC showing that sales for their fiscal quarter ending June 30, 2018 declined to $9.1 million or 30.3% below the $13.1 million booked in the same quarter a year earlier. However, thanks to aggressive cost cutting, the company’s net loss narrowed to ($6.9 million) in the quarter as compared to a net loss of ($7.3 million) in the same period last year.
Monster’s declines continue, although at a slowing pace… [Read more…] about Monster Sales Declines & Losses Continue
Troubling Sign: New Home Sales Resume Their Decline
Economic Storm Clouds Continue to Build
In what many feel is yet another sign of a brewing economic storm, sales of new single-family homes in October showed a significant drop of 8.9% below the rate of home sales in September, according to new data from the United States Census Bureau. With this result, the inventory of new homes available for sale jumped to 7.4-months, a 14% jump in unsold newly constructed homes.
See more on this troubling report on housing… [Read more…] about Troubling Sign: New Home Sales Resume Their Decline
Japanese Startup to Disrupt U.S. Residential Construction Market
As you head home from work today, take a look around you at the other commuters on the road. All around you are Toyotas, Hondas, Nissans, Suburus and the like. These are all signs of the incredible success Japan has has penetrating the U.S. automobile market – taking significant market share away from the once dominant Big Three American auto makers, GM, Ford, and Dodge/Chrysler many years ago.
Can Japan do it again? Are builders D.R. Horton, Lennar, PulteGroup, K.B. Homes at risk of the same loss of market share? If Takeshi Homma (pictured here) is successful, he hopes to help Japanese companies take a big bite of the American homebuilding market.
See this bold plan to bring Japanese companies into American homebuilding… [Read more…] about Japanese Startup to Disrupt U.S. Residential Construction Market
Klipsch Black Friday Proceeds to Aid Cancer Patients
Klipsch is doing something good with a portion of their anticipated increased holiday website revenues during the upcoming Black Friday to Giving Tuesday time period. The company will donate a portion of their proceeds to The Autumn Leaves Project – a nonprofit organization that is dedicated to aiding those who are battling one of the deadliest illnesses known, pancreatic cancer.
