Not to worry, Colt will always be a viable company, regardless of military contracts. Do you remember when S&W was in deep financial concern? Look at them now, the largest producer of firearms. Whatever it takes, I am confident in their survival, whether it be new products or increased production of models that they can't make fast enough, ala SAA's through the custom shop and civilian models of AR's, the demand is there, always has been, always will be. Colt is the American legend. Wish they'd ring back the Colt-Sauer rifles, true masterpieces. Long live the king!!
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The market for a revolver such as the colt Python is most likely very small. Especially at what it would cost to manufacture something as precision and polished as a Python. In today's dollars it would have to retail for $1500 - $2000 dollars. In a world where everyone wants 15 round plastic guns the python would be a niche market player at best.All they need do is bring back the Python, Diamondback, and a few other long defunct DA revolvers, and the sales surge would bring them out of debt in a couple of months.....
Ditto...My earlier post was intended to be "tongue in cheek" after the recent posts by those clamoring for the return of the old Colt DA revolvers to save the day and make millions for the company.....
The bond is noted above. It's a 8.750% callable bond which matures on Nov. 15, 2017. It's rated "B" by Fitch. It does yield 15.369% to maturity (due to current trading prices 25% below par). It is not liquid (doesn't trade much).
It's is not secured (no property or account receivables backing it). It was used to fund the upfront costs of a military contract (the government pays when it wants to). Since Colt Defense is privately owned, it is next to impossible to see a recent financial statement.
No, Colt isn't going to be making Pythons and Diamonbacks.
A famous (unanamed for here) Colt expert toured the factory years ago and was queried what Colt needed to do and he told them..............................bluntly. He told them to stop the expensive, and needless, forging of SAA frames and investment cast them. He also showed them how to polish better & cheaper. He told them that they needed to offer a SAA for circa. $500 and they refused. They then proceeded to import in the abortion that was the Colt Cowboy (made in Czechoslovakia) and further trashed the name.
He said there were two problems that doomed Colt at that time: the mgmt. was made up of non-gun people who were purely bean counters. The second reason was that they are hamstrung by union obligations and that the union refused to negotiate.
Colt missed the boat entirely with the CAS craze that peaked circa. 2000. Instead, they snobbishly chose to cater to the Mounted shooters which has about as much following in the USA as soccer. The Italians beat them at their own game with conversions, '72 Open Tops, etc. This is a textbook example of why American businesses fail.
He said there were two problems that doomed Colt at that time: the mgmt. was made up of non-gun people who were purely bean counters. The second reason was that they are hamstrung by union obligations and that the union refused to negotiate.
Colt missed the boat entirely with the CAS craze that peaked circa. 2000. Instead, they snobbishly chose to cater to the Mounted shooters which has about as much following in the USA as soccer.
The Italians beat them at their own game with conversions, '72 Open Tops, etc. This is a textbook example of why American businesses fail.1 - 20 of 31 Posts
