Boyd Wheels

[2000m2]

Originally Posted by echappist

I'd also like to know if there are any bond holders in senior position. B/c were the scheiss to hit the fan, equity owners gets wiped out.

Originally Posted by pdonk

The fact that they provide a basic form of financials in the filing documents is a interesting to look at.

https://www.sec.gov/cgi-bin/browse-e...ion=getcompany

From that super interesting and helpful SEC link above (quickly scanned it), there appears to be about $800k of debt (short term + long term).

The ownership structure is a bit complicated for a company of this size, when you look at the Munich Composites part added to the Boyd ownership and then the aluminum wheels manufacturing (Olive Manufacturing Group LLC).

Overall, I like what they're doing. The investment, to me, isn't something I would bet my retirement on. Supporting U.S. manufacturing would be the investment and then buying some of their wheels. Maybe as an investor one could convince them to make some rim brake tubulars, beyond their track wheels??

[C40_guy]

Originally Posted by sevencyclist

Very interesting. I am wondering whether it's a better investment into the company or into a set of Boyd wheels...

QQQ would be a better investment.

[sparky33]

Originally Posted by sokyroadie

Anyone going to pony up.

I am not, but I wish them luck. They make nice wheels and are good to their customers.

This global market forecast seems a bit rosy.

[sparky33]

Originally Posted by weaponsgrade

I recall clothing company Kitsbow tried something like this. A few months (weeks?) later they shut down. It's gotta be a tough trying to compete with Asian brands like BTLOS.

I would invest in Kitsbow just to replenish my Icon flannels and liner shorts.

[echappist]

Originally Posted by 2000m2

From that super interesting and helpful SEC link above (quickly scanned it), there appears to be about $800k of debt (short term + long term).

The ownership structure is a bit complicated for a company of this size, when you look at the Munich Composites part added to the Boyd ownership and then the aluminum wheels manufacturing (Olive Manufacturing Group LLC).

Overall, I like what they're doing. The investment, to me, isn't something I would bet my retirement on. Supporting U.S. manufacturing would be the investment and then buying some of their wheels. Maybe as an investor one could convince them to make some rim brake tubulars, beyond their track wheels??

It gets better. On pg. 38 is this doozy of a statement re: dividend payments to shareholders of Munich Composite

Munich Composites is required to pay a substantial dividend every year to its preferred investors [ed. listed on pg. 11].

Beginning on April 15, 2025, dividends at a rate of $40,000 per month (or $480,000 per year) accrue on the “preferred class A shares” in Munich Composites.

Beginning on April 15, 2026, Munich Composites is required to pay a quarterly dividend equal to 2 cents per share of Preferred Class A (currently, there are 2,300,000 shares authorized, which would equate to a quarterly dividend of $46,000 or a yearly dividend of $184,000).

Currently, the Company does not own any “preferred class A shares” in Munich Composites, though the Company intends to purchase all of the remaining authorized but unissued preferred class A shares” in Munich Composite"

This dividend payment schedule could adversely hamper the operations of Munich Composites or put inordinate pressure on cash flow and operations in Munich Composites. Additionally, the accruing dividend will dilute the common shareholders (currently just the Company and Cardinal Cycling Group, Inc.) and adversely affect the Company’s investment in Munich Composites.

If I'm not mistaken, "Munich Composites" refers to the recently established company, and it would appear that 1.34 M preferred A shares in Munich Composite were issued (none currently owned by Boyd), with the possibility of issuing another 0.96 M preferred A shares to reach the 2.3 M shares mentioned on pg. 38. If my calculations are correct, that's a dividend yield of 29% per annum, or about 10x what S&P 500 provides.

And it would appear from pp. 10-11 that quite a bit of the aim of the issuance of common shares in Boyd is for Boyd to purchase preferred A shares in Munich Composite (specifically, the 0.96 M preferred A shares that can be subsequently issued). Boyd's own statement on pg. 38 confirms as much re: effects of the dividend.

Who wants to be the schmuck who ponies up money to buy common shares, so that a good portion of it go toward dividend payment? Without both the onerous (pretty much Boyd's own words) dividend payment and what seems to be a move to benefit Boyd itself, I could see value of investing in common shares to gain market share. But what's contained in this disclosure really leads to some unpleasant implications.

Way too rich for my blood. If I had money to burn (subjunctive mood emphasized), I might consider loaning them money (say $7500 worth) with a warrant to convert the amount loaned into those sweet Class A shares in Munich Composite. Still risky, but not nearly as much buying common shares in Boyd Cycling.

[AngryScientist]

The problem is that offshore made carbon wheels have gotten really, really good.

I'm not really sure what makes them think they are going to get significant penetration into the OEM market when all the OEMs have established connections with offshore makers of goods already.

At the very high end, I can see where a customer would pay a premium for a bike outfitted with ENVE or Zipp or Lightweight wheels, but I dont see Boyd brand recognition as significant.

As mentioned, I know nothing here. I'm sure they have a plan. Let's see how it pans out.

[prototoast]

Originally Posted by polyhistoric

The online review of the Munich Composites rims and wheels (Schmolke) don't seem all that positive and I can't see how this will support the sales gains being predicted.

I'm all for investment and development and building factories with good QC, environmental compliance, and offering a livable wage.

I just don't see the investment value. Wish them all the best though.

My understanding is Schmolke is that they are offering very lightweight rims, and have had a number of customers who have had negative experiences with those rims cracking. I don't think that's necessarily an indictment of the manufacturing process, and Boyd will have the ability to choose their desired carbon/resin/layup to get the strength they want.

[November Dave]

Originally Posted by 2000m2

Maybe as an investor one could convince them to make some rim brake tubulars, beyond their track wheels??

Only if you want to ensure your investment loses value. It would shock me if enough aluminum tubulars, globally, rim and disc, were sold between now and eternity to use up a minimum run of the extrusion.

[saab2000]

I have had great success with my Boyd wheels. Never touched a spoke to true them. Thousands upon thousands of miles.

That said, I won’t be investing.

[fogrider]

Originally Posted by November Dave

Only if you want to ensure your investment loses value. It would shock me if enough aluminum tubulars, globally, rim and disc, were sold between now and eternity to use up a minimum run of the extrusion.

This. I ran tubulars exclusively for 20 plus years. The problem is there is a lack of tire selection for tubulars and prices have gone through the roof. I've just bought 2 pairs of BTLOS wheels.

[Haldy34]

[QUOTEMaybe as an investor one could convince them to make some rim brake tubulars, beyond their track wheels??[/QUOTE]

You don't need to be an investor to do that. They do still make rim brake tubulars. I'm rolling on a few pairs of them and as a Boyd dealer, I have built up several sets for my customers this year.

[C40_guy]

Originally Posted by saab2000

I have had great success with my Boyd wheels. Never touched a spoke to true them. Thousands upon thousands of miles.

That said, I won’t be investing.

I can say the same for four sets of Campy Eurus wheels and the first Mavic/Campy wheelset that Oldpotatoe build for me at least 20 years ago!

[gavingould]

No personal experience with Boyd, company or wheels.

Per the SEC Form C… ~$285k less revenue/sales in most recent year than the previous fiscal year.
Net income shown to be (43k) most recent fiscal year and (24k) previous.

I’m not a big investor or SEC filing wizard, but If I’m not mistaken, those numbers being in () means loss. Lower sales and larger loss vs previous year - trend is not in the direction I’d want to see.

I don’t see how being the ‘only manufacturer of both alloy and carbon rims’ is such a feat. It’s interesting, sure, as is the American-made angle.
But are OEMs going to switch from their current suppliers to Boyd?
What’s the differentiator or advantage for them to do so?

For those reasons, I’m out.

[prototoast]

Off the top of my head, the only obvious OEM opportunity would be Time Bicycles, which are also producing out of South Carolina. But I don't know if they do enough volume to substantially improve Boyd's sales. Maybe Lynskey or Litespeed too? But also not clear what's stopping them from tapping that channel now.

[rwsaunders]

Running a niche business that’s manufacturing intensive and competing against established offshore brands…tough space to be in. I’d be tempted to make a call to the Waltons, and skip the VC folks and the small investors.