Can anyone check up on jackmott to see if he's ok?

He'll be fine After all look at what PON did with Raleigh and Univega.

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Styrrell

I wondered why they were offering the $2000 discount. Apparently to bolster the bottom line for a good purchase price. Good for Gerard and Phil getting their golden parachute.
Question is, who will ultimately control design and quality form this point on?

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This is your life, and it's ending one minute at a time. - Fight Club
Industry Brat.

The $2K Sale is likely coming too late to impact the purchase price. However, it may have to do with inventory levels and what PON was willing to pony up for. COmplete speculation on my part, though.....

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Chicago Cubs - 2016 WORLD SERIES Champions!!!!

"If ever the time should come, when vain and aspiring men shall possess the highest seats in government, our country will stand in need of its experienced patriots to prevent its ruin." - Samuel Adams

Could be the same team running the company as before.

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Styrrell

gross
fortunately I am way behind the curve so I can pretend Cervelo never sold out until I but a used s5 then p5 =)

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Kat Hunter reports on the San Dimas Stage Race from inside the GC winning team
Aeroweenie.com -Compendium of Aero Data and Knowledge
Freelance sports & outdoors writer Kathryn Hunter

I am not so sure how golden the parachute really is.

I think Cervelo has been making bad business decisions for years now and it has finally caught up to them. Making a cool bike does not make you an astute businessman.

Looks like a fire sale to me.

They need to make comfort bikes, etc. and to sell them at Wal-Mart for $200 in order to make money. BTW, should have bought Velocity and made fixies only starting in 2003...they could have retired in 2010...:)

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"Most of my heroes don't appear on no stamps"
Blog = http://extrememomentum.com|Photos = http://wheelgoodphotos.com

Seems hard to say. The money they've spent on the pro tour team is certainly way out of line for a company their size. But they re-upped for another year (at slightly lower cost) after seeing how expensive the Test Team was. But they sell a lot of expensive bikes and have the name. They could easily drop the pro tour team money and coast for years of high sales.

+1. Could easily be a distress sale. Healthy, well run, companies don't normally need to offer huge discounts at year end to blow out excess inventory.

Might explain the recent stepping back that Gerard has done this year....

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Heath Dotson
HD Coaching:Website |Twitter: 140 Characters or Less|Facebook:Follow us on Facebook

Here's what Bicycle Retailer wrote regarding Gerard's departure. He's still involved as a member of the board.

Or poor economy, pricing too expensive, too much supply, not allowing mail order [this could of been a huge mistake], or a combo of any of the above. Also, cervelo historically offered year end sales at 25% to 30% off for the last several years.... which is similar to this percent off.

THIS!


I've been wondering why the $2000 discount right now when two years ago they sold every bike they manufactured at near retail prices. This makes complete sense.

Bob

Not to state the obvious, but just because you sell expensive bikes and have high sales doesn't mean you're a profitable company...

When it all comes down to it, probably some sort of multiple of EBITDA (and I have absolutely no idea about Cervelo)... maybe they get a bit higher multiple because of the brand... who knows.

Wish them well...

PON also owns Audi

this makes so much sense

You buy your S5 Audi Coupe, get a free S5!

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Kat Hunter reports on the San Dimas Stage Race from inside the GC winning team
Aeroweenie.com -Compendium of Aero Data and Knowledge
Freelance sports & outdoors writer Kathryn Hunter

Suggest you check your references on that.

Audi is owned by Volkswagen.

As per the PON website, their Audi BU:

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I'm competing against my current fitness level, and planning to kick my a**!

How about you buy

S5 get a free A5
P3 get a free A3

I'd be even willing to pay for the roof rack. Seriously though, I'd get the Golf over the A3. I'm more of a VW kind of person. Being associated with anything remotely upscale would conflict with my image of trying to do everything as cheaply as humanly possible (fastest path to retirement and being a full time athlete is buying 10 less cars in one's lifetime then the neighbour....)

I have no idea as to the financial health of Cervelo. That said, I long ago questioned how they could afford to almost solely fund a professional cycling team that was competing at the highest level of the sport. There is simply no way they sold enough incremental bikes to even brake even, let alone make the investment worthwhile.

We have no idea if the current sale and this agreement are linked, but it does make you go "Hmmmm....", no doubt about it.

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Chicago Cubs - 2016 WORLD SERIES Champions!!!!

"If ever the time should come, when vain and aspiring men shall possess the highest seats in government, our country will stand in need of its experienced patriots to prevent its ruin." - Samuel Adams

....all I can say is "bummer". I see this with Canadian companies all the time in the tech industry....we get medium big, but can't seem to get to the next level and are forced to sell out to a larger player before taking that next step in the order of magnitude of business. Too bad. Also, it is fairly rare that founders of a startup can lead/steward the same company to international domination in their segment. The same traits of innovation and agility that made them successful startup founders aren't neccessarily the same ones to make it really big, aside from the odd Steve Jobs type. Founders of companies can usually have a role in running business units, product management or CTO office type roles, but best for the corporate structure to hand over the real COO/CEO work to someone who can manage that level of biz. Founders generally have too much emotional baggage to take the biz to the next level. Not saying this is exactly the case at Cervelo (if they do end up selling), but it is the case of many Canadian Tech companies. Our tax laws, govenrment inventives and capital markets are not as favourable as most US jurisdictions or those in Israel (almost impossible to compete with an Israeli startup given their favourable VC/govt investment environment)

Companies aren't always sold when they are in distress. Pons other bike companies are currently medium to lower end bikes. nothing says this isn't a way or rounding out the line.

When cannondale was sold people thought that was the end of the line for them. At least from the outside they are still revising and coming out with nice product.

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Styrrell

Heh

Both volkswagen and audi are listed on PON's website under their list of companies.

that is my reference =)

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Kat Hunter reports on the San Dimas Stage Race from inside the GC winning team
Aeroweenie.com -Compendium of Aero Data and Knowledge
Freelance sports & outdoors writer Kathryn Hunter

Yeah the Golf is cheaper too and almost the same car.

However the a3 is "lower" which, in this case appeals to me a lot because the golf is so offensively high for a 'sporty' car.

So, the only solution is..

VW Scirocco!

but then all of these cars are FWD which is total lose.

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Kat Hunter reports on the San Dimas Stage Race from inside the GC winning team
Aeroweenie.com -Compendium of Aero Data and Knowledge
Freelance sports & outdoors writer Kathryn Hunter