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Tuesday, 05/20/2014 10:06:12 AM

Tuesday, May 20, 2014 10:06:12 AM

Post# of 191
you have to remember also that the company to finance the inventory takes equity in those small retail organizations as collateral that in turns dilutes the original owners now because they are for the most part private should they take control of the equity they will have to choices sell the company or merge the company under there own or sell the assets but what they like to do I would think is hold onto them and there teams for future sales but yes the whole thing could slide into chapter 7 if the product is no good.


The bigger the product for example air crafts, ships,in general big ticket items can be a bigger problem then lets say selling beer or cigars were the equity is diversified among other brands but then due to smaller sales of these items you will find a company won't finance the product.



This again is were companies will use derivatives as well as short selling there own stock to hedge against a down turn in product sales or competition coming into the market place by buying a position in those said companies with reorganized assets not for a better term found in my head at the moment for what I'm trying to get a cross here.

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