If Hoya buys Pentax, drops cameras and keeps endoscopes, as is likely, you'll have the same problem...
Tom C wrote: >> From a Feb 5 2007 report regarding Pentax: > > On the other hand, management lowered its full-year estimate for the life > care segment to ¥3.4 bn, from ¥4.3 bn due to (1) shortfalls in planned > sales > of airway scopes, (2) increased competition in the market for artificial > bones, and (3) the delayed launch of its new flexible endoscope. It also > lowered its target for optical components segment, evidently owing to > production cutbacks at customers for its micro lenses and inventory > valuation losses on lens units > > Our overall impression is Neutral but results for the life care > segment, a > center of investor attention, was a bit disappointing. > > ---- > > Other reports indicate that Pentax is facing huge competition in the > medical arena by companies with deeper pockets. > > Alot of this doesn't have anything to do with whether one has a good > product or if it's selling well. It has to do with whether one is > making enough profit to keep shareholders happy AND continue to > innovate and turn out new products. > > Assuming Pentax and Canon is spending the same amount on R&D which is > a bad assumption to begin with, if Pentax is making 1/5 the profit on > each DSLR as Canon is (I think my example is in the ballpark), they > would need to sell roughly 5x as many units in order to continue R&D > at the same rate. > > They are essentially facing an uphill struggle on an incline that gets > steeper and steeper. > > Yes, Pentax could drop the camera division all on their own, without > Hoya. I just can't figure out what I'd do with an endoscope though. > > Tom C. > > > > > > > > >> From: "P. J. Alling" <[EMAIL PROTECTED]> >> Reply-To: Pentax-Discuss Mail List <[email protected]> >> To: Pentax-Discuss Mail List <[email protected]> >> Subject: Re: Pentax Update - Shakeup in the Works (again) >> Date: Tue, 24 Apr 2007 19:27:27 -0400 >> >> You're looking at the Imaging division, look at the whole picture. If >> Pentax wanted to increase profit margins they could drop camera >> development and sales themselves. They don't need Hoya for that. There >> seems to be nothing but upside potential in their medical and other >> divisions. >> >> Tom C wrote: >> > Not really. With Pentax market share in DSLR's around 6% and >> profit margins >> > down around 2% on digital cameras, it gets harder and harder to >> compete in >> > the face of competitors who are continuing to gain market share and >> are >> > realizing economies of scale and higher profit margins either by >> > manufacturing their own components or by sheer buying power. >> > >> > How long does one wait before deciding they can't go it alone? >> Evidently >> > Pentax management thought something must be done, not just Sparx. >> > >> > >> > Tom C. >> > >> > >> > >> >> From: "P. J. Alling" <[EMAIL PROTECTED]> >> >> Reply-To: Pentax-Discuss Mail List <[email protected]> >> >> To: Pentax-Discuss Mail List <[email protected]> >> >> Subject: Re: Pentax Update - Shakeup in the Works (again) >> >> Date: Tue, 24 Apr 2007 18:33:24 -0400 >> >> >> >> >> >>> Sparx had supported Urano's efforts to pursue a merger with Hoya >> amid >> >>> >> >> the >> >> >> >>> belief that Pentax would not be able to survive on its own. >> >>> >> >> Does anyone else see a self fulfilling prophecy here? >> >> >> >> Tom C wrote: >> >> >> >>> Excerpts... >> >>> >> >>> TOKYO (Nikkei)--Pentax Corp.'s top shareholder, Sparx Group Co., >> plans >> >>> to back the appointment of directors to the camera manufacturer's >> >>> board who would support Hoya Corp.'s tender offer plans >> >>> >> >>> This could bode ill for Pentax President Takashi Watanuki and >> others who >> >>> voted down a proposed merger with Hoya and are said to be against a >> >>> >> >> business >> >> >> >>> integration with the firm. Sparx aims to use its 23.98% stake in >> Pentax >> >>> >> >> to >> >> >> >>> nudge the company toward accepting a business integration with Hoya. >> >>> >> >>> With all eight Pentax directors facing re-election at an upcoming >> >>> >> >> general >> >> >> >>> shareholders meeting scheduled for June 22, Sparx plans to >> propose the >> >>> reappointment of former President Fumio Urano and former >> Executive Vice >> >>> President Katsuo Morio to the board. The pro-merger Urano and Morio >> >>> >> >> were >> >> >> >>> relieved of their duties as executives earlier this month. >> >>> >> >>> ... >> >>> >> >>> Sparx apparently believes that its proposed appointments will go >> through >> >>> if it can win the support of overseas shareholders who are highly >> >>> >> >> conscious >> >> >> >>> of >> >>> measures aimed at improving Pentax's enterprise value. >> >>> >> >>> Sparx had supported Urano's efforts to pursue a merger with Hoya >> amid >> >>> >> >> the >> >> >> >>> belief that Pentax would not be able to survive on its own. >> >>> >> >>> ... >> >>> >> >>> Citing an internal rift at Pentax, Sparx will call for an >> overhaul of >> >>> >> >> the >> >> >> >>> camera manufacturer's leadership to prevent an erosion in the >> company's >> >>> share >> >>> price and other enterprise values. >> >>> >> >>> >> >>> Tom C. >> >>> >> >>> >> >>> >> >>> >> >>> >> >> -- >> >> Entropy Seminar: The results of a five yeer studee ntu the sekend >> lw uf >> >> thurmodynamiks aand itz inevibl fxt hon shewb rt nslpn raq liot. >> >> >> >> >> >> -- >> >> PDML Pentax-Discuss Mail List >> >> [email protected] >> >> http://pdml.net/mailman/listinfo/pdml_pdml.net >> >> >> > >> > >> > >> > >> >> >> -- >> Entropy Seminar: The results of a five yeer studee ntu the sekend lw >> uf thurmodynamiks aand itz inevibl fxt hon shewb rt nslpn raq liot. >> >> >> -- >> PDML Pentax-Discuss Mail List >> [email protected] >> http://pdml.net/mailman/listinfo/pdml_pdml.net > > > -- Entropy Seminar: The results of a five yeer studee ntu the sekend lw uf thurmodynamiks aand itz inevibl fxt hon shewb rt nslpn raq liot. -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net
