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They are capitalized by Zongshen International, they are part of Zongshen PEM Power Systems INC.
The sales fell and the invested capital lost near 75% of its value. The stock went from $4.00 a share in 2008 to $1.12 today
Obviously they have to figure out what to do….one option is to give up, the other is to invest further in, is that what they are doing?
It is not just people buying the products, but obviously that’s pretty much the source of revenue…it is also having capital to improve the system. That comes only with capital from the parent company or a bank and also compounded in stock appreciation.
The web sites are not being maintained, investors and customers see that. Then guys like me see inventory liquidations and its not at all positive, no matter what spin you put on it, it just isn’t.
Zongshen international needs to take control and they need to get the websites in order. They could have and should have gotten control of the inventory and sold that through existing dealers. IMO reduced the prices and beefed up warranty it’s all reputation at this stage and weathering the storm.
I have to wonder what they are thinking….maybe that nobody really knows who they are yet? They may come out with larger displacement bikes and through the venture with Harley have access to all the Buell designs, they may be tooling up to make versions of them as we speak. I would and poised to undercut the big four.
But that will take dealers and margins on unit sales that are competitive in actual dollar profit per unit and that could be attainable. But they have to have some plan to garner stock appreciation and also interest of the consumer as well as dealer support.
What is happening today is all recorded, the product satisfaction and seeing the product being sold on unassociated internet sites is not good if they plan to be bigger in the market. Its about clearly defining the North American product lines and on a well designed website and then also defining the sales/service dealer network. If you want one and were you can get one.
The majority of buyers are not interested in being a hunter gatherer for parts, if needed. Some are but that’s a niche market, the big main market is the big four. They have to do better for less, but in that they cannot screw the dealers.
If they get it right people buy the bikes, then people also buy the stocks. It cycles up and everybody wins…except the big four.
I think getting one of these bikes today is a good deal, I also think I may buy some stock...it the harley partnering and the timing that is interesting.
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