Vacuum Cleaners Discussions

Early news reports in the USA are saying the London financial markets nosed dived today in the worse downturn ever.  This comes on the heels of a 4 percent drop in the Dow Jones Industrials last week alone.  Since today is a Federal Holiday in the US in observance of Dr. Martin Luther King the financial markets are closed.  Not sure what impact the London market fall will have on the US markets--have to wait to see.

What and how long will it take jaydee to realize that he needs to enter the low to middle price range vacuum market to stay competitive in the USA in the big box stores' venue?

Any news yet on the 2007 dyson sales? 

Carmine D.

CarmineD wrote:

Oh c'mon!  He'll probably get some more from somewhere.  (How many billion did he start out with?)  After all if JP Morgan Chase can buy Bear Stearns for $250 million and then have the government kick in a $30 billion line of credit anything's possible.  Them that's got -- get.

Per the Times Online, the Dow was up 21 points when it cloosed today.

Best,

Venson

Venson wrote:

Venson:

My heart goes out to the 14,000 BS employees whose 401 K accounts are heavily weighted with the company stock.  They not only have the risk of losing their jobs but their retirement savings too.

Word on the street is that the Fed will cut again tomorrow, maybe 100 basis points.  Which may explain why the US market opened down 150 today and then recovered and made a slight gain. 

Also, Lehman Brothers went down to $20 a share today and may be the next financial to go belly up if investors bail.  This time the Fed may not intervene.

BTW, markets around the world opened down today as a result of the US bailout of BS and subsequent purchase by JP Morgan Chase.  Gold hit a high of $1033, as flight to safety.  Have to see what happens tomorrow when the Feds meet.  And world markets are down 5 percent more than the US market so far this year.

Can you imagine buying an asset for 2 cents on the dollar with a guaranty from the US government.  That's exactly what JP Morgan Chase did with the acquisition of BS. 

Carmine D.

CarmineD wrote:

Carmine that's what I meant when I said them that's got get.  Only 14,000 employees? There was a statement made during a news show I watched earlier that claimed about 30 percent of Bear Sterns' stock was owned by employees. That's sad if true.

Venson

Venson wrote:

Hi Venson:

The employees who own the Bear stock could not bail.  Why?  Something in the financial industry called a 'lock up' period.  Before companies issue their financial results and earnings employees are preempted from buying and selling its stock.  Not so with the investors.  Sure isn't fair.

Carmine D.

Sir James thinks people will be investing in his high priced vacuums during a recession :-

http://news.sky.com/skynews/article/0,,30400-1309648,00.html

Do you agree with this point of view, Carmine? ;-)

M00seUK wrote:

Hello M00seUK:

I understand his reasons for saying this.  Unfortunately, saying it's so does not make it so.  While his perspective is from the business view [R&D], the real issue is what will consumers do?  Buy new?  Wait?  Buy cheaper?  Repair?

There was an interesting survey [done by a Consumer Electronics group} recently of persons in the USA about to receive the cash rebates from Uncle Sam and what they will do with the money?  It amounts to $600 US per tax payer and $300 for their dependents.  An overwhelming majority of the persons said they will pay down debt and expenses.  Not buy new gadgets and household items.  This defeats the purpose of jump starting consumer spending.

My sense is that people are people all over the world.  The sub prime slime here in the USA has taken a huge toll on US consumers' spending and confidence.  Not so in the UK where housing and real estate is still experiencing a bullish market.  But you and I [and James] know that dyson exports to the US and other countries account for the bulk of dyson profits.  With the dollar down, and the Euro at all time highs, the dyson exports are too expensive for US consumption. 

Having 40 plus years in the vacuum cleaner sales and service business [1949 to 1992] and weathered many economic cycles, I also have to disagree with James. 

I think a good barometer of dyson future sales are the dyson 2007 sales.  Unfortunately so far, this dyson information has not been forthcoming.  Although I recall last year this time, dyson 2006 sales and profits were widely circulated on the Forums and Web Sites along with 2007 quarter 1 vacuum sales by brand [thanks to the NPD and US News and World Report].

I'd like to see dyson's 2007 financials. Then I can answer with more accuracy and information on Jame's beliefs.

Carmine D.

CarmineD wrote:
Thats all well in good if we actually made anything anymore. Outside of Exporting Oil & Food and Making Tractors and Airplanes what do we actually produce. (Even at that our own Air Force doesn't want to buy our planes).

Unfortunately the weak dollar means our real estate and corporations will be sold and bought by foreign entities at bargain basement prices.

I've always said every "ism" used by itself is destined to fail including free market capitalism. We need a bit of protectionism, socialism etc. Yin & Yang so to speak.


At some point savvy investors are going to drop gold, make a killing and leave the late buyers to hold the bag. Then they will buyback into the US low and sell high...just have to wait till they're ready....can you hold out till then is the question.

Lucky1 wrote:

John Deere and its products are selling very well in eastern Europe, Russia and China.  Thanks in large part to the weak dollar [double edged sword] and the strong euro.  The USA still imports most of its oil and due to the $110 a barrel cost, we don't have a trade surplus, despite strong exports.  Tourism in the USA is booming.  Again, thanks to weak dollar. 

The lead contractor in the Air Force contract is Northrop Grumman a California based company.  Of course its partner is EADS, a French company.  The AF contract is in dispute and has gone to the Government Accountability Office for a ruling.  As long as the Air Force followed the rules and regulations for bid solicitations and acceptance, I doubt the GAO will overturn the AF decision.

Carmine D.

CarmineD wrote:

Read this today.  How about your favorite store?  Any wonder why they make a profit?  Not much  MADE IN THE USA  there today.

Tax Rebate

>  

> President Bush said each family would get a $1200.00 tax rebate. It

> was  previously slated to be $1400.00, but they dropped it to a

> $1200.00 tax  rebate because of various budget problems.

>  

> Now, if we spend that money at Walmart, all the money will go to

> China,

> if  we spend it on Computers, most of the money will go to Korea or

> India. If  we spend it on gasoline it will all go to the Arabs.....and

> none of these  scenarios will help the American Economy.

>  

> We need to keep that money here in America .....so the only way to

> keep  that money here at home is to drink beer, Gamble, or spend it on  

> prostitution. Currently it seems that These are the only businesses

> still  left in the U.S.

Hello HARDSELL:

That's funny.  Sad to say, WM contracts with companies and businesses that use Chinese vendors/similar for 80 percent of its products.  If you saw the size of the ships that carry the goods here from there, which pail most in the water in size, it would amaze you.

A brand new Wal*Mart store opened in Vegas.  Going green.  Sky lights provide the light for produce.  One of many in LV and doing well.  Especially now in hard times.  Aisles full of people.  Goods flying off the shelves.  Cheap goods.  I checked out the vacuums.  Dysons gone from display and no dyson cartons.  Not selling.  GE canns sold out.  BISSELL power force [$44 retail] sold out on the shelves.  I asked about it.  Was told more are expected any day.  From where?  Another nearby WM store which has them in stock. 

That's the reality of business today and consumer buying.  When the bluist of the blue chips [Bear Stearns] can go belly up, people start to worry.  Stop spending.

Carmine D.