Colt Firearms "downgraded" by S&P, put on "Credit Watch"

[melensdad]

Looks like the recent award to Remington for making military M4 carbines may be the death knell that finally kills off the venerable Colt. Standard & Poors credit rating service has downgraded their credit rating and placed them on "credit watch" status. That is usually what happens before a company is flushed into the annals of history via some sort of "reorganization" or bankruptcy, or corporate buyout leading to a reorganization, etc.

LINKY => S&P Downgrades Colt, Puts Company on Credit Watch | The Truth About Guns

 

[drillsgt]

Looks like the recent award to Remington for making military M4 carbines may be the death knell that finally kills off the venerable Colt. Standard & Poors credit rating service has downgraded their credit rating and placed them on "credit watch" status. That is usually what happens before a company is flushed into the annals of history via some sort of "reorganization" or bankruptcy, or corporate buyout leading to a reorganization, etc.

LINKY => S&P Downgrades Colt, Puts Company on Credit Watch | The Truth About Guns

They're just now starting to make nice interesting guns again. Shed the unions and come to Indiana.

 

[LPMan59]

i doubt that colt will be flushed.

1) aren't they moving to FL and saying buh-bye to the union?
2) they still get royalties from every M4 made, maybe not enough to sustain them, but it's something
3) they are really stepping up their civvy marketing and the guns seems to be selling well.
4) on other sites, people seem to think this will allow Colt to retool a bit and focus on new designs, particularly for military trials.

I have no idea, just regurgitating what i've seen elsewhere....can't vouch for any validity. But I personally dont think Colt is done yet (again? lol)

 

[wtfd661]

That is usually what happens before a company is flushed into the annals of history via some sort of "reorganization" or bankruptcy, or corporate buyout leading to a reorganization, etc.

LINKY => S&P Downgrades Colt, Puts Company on Credit Watch | The Truth About Guns

Man I hope not. Would suck to see it go down the drains.

They're just now starting to make nice interesting guns again. Shed the unions and come to Indiana.

This would be AWESOME

 

[mdemetz]

They're just now starting to make nice interesting guns again. Shed the unions and come to Indiana.

The Indianapolis Colt

 

[rgrimm01]

Why not bring back the .357 Python? Would love to have one w/4" barrel to carry in the woods...

 

[JB357Mag]

Im not saying Colts are overpriced, but they sure are expensive.

Maby a little price drop would help.

Jimmy

 

[indyjohn]

Im not saying Colts are overpriced, but they sure are expensive.
Maby a little price drop would help.
Jimmy

Same with the used market,
https://www.indianagunowners.com/forums/long_guns_rifles_and_shotguns/212954-colt_ar15_nib.html

 

[Expat]

Colt suffered for a few decades due to the black eye they gave themselves over the AWB. There were quite a few RKBA supporters that would not buy a Colt because of their betrayal. You don't hear much about it any more but I can't help but wonder if there is still some hard feelings against them.

 

[LPMan59]

Same with the used market,
https://www.indianagunowners.com/forums/long_guns_rifles_and_shotguns/212954-colt_ar15_nib.html

colts arent the only guns in the classifieds with the owners asking far out prices.

Some people are banking on the election to drive demand again I'm sure, and some people think that what they have spent determines how much it is worth.

 

[Rob377]

Same with the used market,
https://www.indianagunowners.com/forums/long_guns_rifles_and_shotguns/212954-colt_ar15_nib.html

I literally laughed out loud when I saw that one. You should have seen what he was originally asking!


If I'm reading the article correctly, the downgrade is only to Colt Defense, LLC, which is separate company from Colt Mfg, LLC.
If the former (military/gov't sales) gets flushed, that doesn't mean the latter (civilian sales) will as well.

 

[wetidlerjr]

Chicken Little told me that the sky is falling.

 

[4PWW9]

Somebody should downgrade Standards & Poor.
Colt is as strong as ever. The recent award to Remington doesn't effect Colt Defense's current M4 or M240 contracts, which are indefinite delivery, indefinite quantity (IDIQ) meaning they can & will go on for several more years. The Govt made it clear that it wanted to re-establish another 3rd vendor for M16 type rifles in addition to Colt & FN, so Colt knew going into it not to bank on "winning" another M4 contract. Another plus is Colt's recent pick into the down level selection for the Army's Individual Carbine program.
And I don't think Colt can make enough rifles for the commercial market right now to meet demand. If anything a downgrade of credit is most likely associated with Colt using more credit to increase production right now and build the new facility in Florida.
On top of all this, I have been a vendor to Colt for awhile now, supplying them with springs & Quick-Detach sling swivels. Never once have they been past due on payment and actually pay me much faster than any other OEM gun companies I currently do business with. If Colt has a financial crisis you can bet it's caused by some bank pulling a line of credit or calling a loan because of a anti-gun stance.

 

[melensdad]

. . .
Colt is as strong as ever.
. . .
If Colt has a financial crisis you can bet it's caused by some bank pulling a line of credit or calling a loan because of a anti-gun stance.

If you have any ACTUAL evidence then I'd like to see it.

S&P has been pretty accurate and reliable, albeit a bit slow sometimes to shout an alert, but still they've been giving solid advice for investors for many decades.

It should also be noted that MOODYS downgraded Colt in May of 2011, then did another analysis of Colt in October of last year and left its rating "unchanged" at that time.

 

[melensdad]

Here is a bit more information, this is from 3 days ago => Colt Defense bonds hit lows following lost contract, ratings warning | LeveragedLoan.com

 

[Rob377]

Looks like 4PWW9 could make a killing in the bond market if he's that much more knowledgeable than S&P and Moody's.

 

[melensdad]

Looks like 4PWW9 could make a killing in the bond market if he's that much more knowledgeable than S&P and Moody's.

In fairness to 4PWW9, he does have insider contacts into gun companies and he may know something that is unpublished. I am simply providing investor information that is published.

 

[4PWW9]

I don't play the markets but I did stay at a Holiday Inn Express a few days ago.
Seriously, if investors knew anything about the gun market, they would be dumping tons of money into it right now, or maybe that's why they are trying to drive down certain companies stock values, so they can buy in cheap.
Something big will be happening with Colt, hide & watch.

 

[Fordtough25]

I have Colt's from the 70's and from the last couple years and the quality on them is superb. Rock on Colt!

 

[indyjohn]

colts arent the only guns in the classifieds with the owners asking far out prices.
Some people are banking on the election to drive demand again I'm sure, and some people think that what they have spent determines how much it is worth.

SPOT ON TRUE.

I literally laughed out loud when I saw that one. You should have seen what he was originally asking!

I KNOW! I'd like to have that rifle, but really? The night he bought that he must have been somebody's *****.