FYI not sure if this goes here, but came across this the other day and thought it was interesting and has some implications for our wallets.
The Cabelas/Bass Pro Merger apparently seems to be falling apart. This article points out how Gander may be on the verge of bankruptcy, which could then trigger an anti-trust review by Commerce department. (A Trump friendly regulatory department could override it, of course, but who knows.)
https://www.fool.com/investing/2017/02/23/competitors-bankruptcy-could-derail-cabelas-merger.aspx
Cabelas stock price is now trading at around $47 a share. The agreed offer was for Bass Pro to pay all cash at a price of $65.50 per share in October. It has declined 30% since the merger was announced, while Consumer Discretionary stocks overall have gone up more than 5% over the same period. Cabelas has also had ongoing issues with it's credit card deal with Capital One that is also complicating things even further.
With sales declining consistently across much of the industry the deal doesn't make as much sense and I would bet it doesn't go through, or if it does at a much lower bid by Bass Pro. (Right now Bass Pro looks like a bunch of suckers.)
I bet much lower prices across the board for hunting and shooting related products, as well as sporting goods in general, are here to stay for quite awhile if this thing falls apart.
Stay tuned.
The Cabelas/Bass Pro Merger apparently seems to be falling apart. This article points out how Gander may be on the verge of bankruptcy, which could then trigger an anti-trust review by Commerce department. (A Trump friendly regulatory department could override it, of course, but who knows.)
https://www.fool.com/investing/2017/02/23/competitors-bankruptcy-could-derail-cabelas-merger.aspx
Cabelas stock price is now trading at around $47 a share. The agreed offer was for Bass Pro to pay all cash at a price of $65.50 per share in October. It has declined 30% since the merger was announced, while Consumer Discretionary stocks overall have gone up more than 5% over the same period. Cabelas has also had ongoing issues with it's credit card deal with Capital One that is also complicating things even further.
With sales declining consistently across much of the industry the deal doesn't make as much sense and I would bet it doesn't go through, or if it does at a much lower bid by Bass Pro. (Right now Bass Pro looks like a bunch of suckers.)
I bet much lower prices across the board for hunting and shooting related products, as well as sporting goods in general, are here to stay for quite awhile if this thing falls apart.
Stay tuned.
