Would You Buy Leica Stock?

[barjohn]

Leica stock has dropped 50% since August (from approximately $12 Euros to 6). Thier P/E is around 36 and they only had a net profit of $2.8M Euros on sales of around $150M Euros last fiscal year.

If you wouldn't invest in the company because you think it is a bad risk (too risky) why would you buy their cameras & lenses? I would guess they sank every bit of that small profit into the S2 and it is looking to me like a bad gamble. What do you all think? Try looking dispationately like a busines person. In today's market I wouldn't invest in any company with such a high P/E. When their next quarterly statement comes out (maybe after their shareholder meeting on the 28th of Nov.) we will learn how they are doing with the M8.2 and upgrades as their major source of revenue.

 

[rogue_designer]

I base my camera decisions entirely on the requirements of the shoot. If only one company makes a certain lens, or a certain system that I need, then I buy it. Regardless of the health of the company as an investment.

My decision to buy a companies stock is independent of my decision to buy their equipment - two different criteria, and two different priorities. That's about as dispassionately and businesslike as it gets.

 

[Keith]

Would You Buy Leica Stock?

I just looked in my cabinet ... and could swear that I already have! 😛

 

[Al Kaplan]

Hell, based on current figures I wouldn't buy 90% of listed stocks. Many are down more than 50%. You buy stocks on POTENTIAL performance. You ideally buy stuff when no one else is buying, because that's why it's cheap.

Kinda the way Leica rangefinders were during "The Great SLR Revolution", when pros were dumping their M2's for Nikon F's and digital was science fiction.

 

[sepiareverb]

I'd buy a new stock offering from Leica if I thought it would help them weather the current storm. I'm saving to buy some new pieces from them to help us both as well.

 

[Thardy]

These days stock prices unfortunately have little to do with the performance of a company.

 

[Gabriel M.A.]

Leica stock has dropped 50% since August (from approximately $12 Euros to 6).

Nikon's stock went from about 4500 Yen in mid-August to about 2000 Yen today.

It has dropped 55% in that period of time.

Is this the beginning of the end for Nikon? 🙄🙄

 

[Gabriel M.A.]

Nikon's stock went from about 4500 Yen in mid-August to about 2000 Yen today.

My bad: it dropped from 3500 Yen in mid-August to about 990 Yen today.

That's a 71% drop. 😱

 

[Al Patterson]

I wouldn't buy a declining old-economy stock with a P/E of 36. Were the P/E more like 6, I'd think about it.

And if I had the bucks to buy an M8 or MP, I would, but both are way above my pay grade...

 

[Tom Niblick]

Does Leica pay a dividend? I couldn't find their ticker listing.

If they were paying 4 or 5%, then dropping $5,000 on stock might not be such a bad short term bet.

 

[barjohn]

Nikon had a net profit after taxes of $354M for the first half of the year. There really isn't any comparison.

 

[barjohn]

Does Leica pay a dividend? I couldn't find their ticker listing.

If they were paying 4 or 5%, then dropping $5,000 on stock might not be such a bad short term bet.

No they don't.

 

[Gabriel M.A.]

Nikon had a net profit after taxes of $354M for the first half of the year. There really isn't any comparison.

Of course not: it's flawless Nikon. Leica is evil.

 

[barjohn]

My bad: it dropped from 3500 Yen in mid-August to about 990 Yen today.

That's a 71% drop. 😱

You really need to do a better job at looking. Here is a link to the historical price since August. http://uk.finance.yahoo.com/q/hp?s=NKN.BE You must look at the adjusted price that is adjusted for splits and dividends. The prices are in Euros. The adjusted price on August 25, 2008 was 6.28 Euros and on 24 Nov 2008 it was 8.46 Euros. Without adjusting for stock splits or dividends you are looking at apples and oranges.

 

[gertf]

No.

I'd buy GE stock though.

 

[Tom Niblick]

Hmm. I'll probably just keep my M4 for when my M8 dies. That camera is indestructible. As for the company, their survival depends on too many other factors. Some of the people who buy Leicas are untouched by economic events. But for someone like me, an average small business owner who's income is down 35-50%, there's no new Leica sale for the foreseeable future. Sure, I gotta buy a few small things to get a depreciation but I'm mostly bottom fishing on Wall Street with whatever spare change is left in my account.

 

[barjohn]

Of course not: it's flawless Nikon. Leica is evil.

Not sure what good and evil has to do with it?? However, if you are speaking about reliability the M8 has been a disaster in that department. I can speak first hand having gone through 3 to get 1 good one. The LUF forum is full of reliability issues though many claim the M8.2 is much improved in this area. Of course it still has the green blob caused by light near the edge of the frame.

I know that my expectations of quality differ when I pay $500 for an item versus $5,000 for an item.🙂

 

[Mackinaw]

Yes, I would buy Leica stock.

Jim B.

 

[gdi]

You really need to do a better job at looking. Here is a link to the historical price since August. http://uk.finance.yahoo.com/q/hp?s=NKN.BE You must look at the adjusted price that is adjusted for splits and dividends. The prices are in Euros. The adjusted price on August 25, 2008 was 6.28 Euros and on 24 Nov 2008 it was 8.46 Euros. Without adjusting for stock splits or dividends you are looking at apples and oranges.

Yeah, you are doing a great job looking! 🙄 Nikon stock has not gone up since August. 21.91 - 8.46 according to your link.

 

[barjohn]

Would you be interested in a bridge by any chance? 🙂