barna65's  Instablog

The stock movement today (1/6) on BDE suggests that most investors aren't following the industry and don't understand the company. First, the recall of the Avalung was first declared voluntarily by the company on 12/14 (although it was only reported by consumer product safety on 1/5) and the recall was well publicized in the extreme sports community shortly after. (I saw a recall notice at REI on 12/29.) Second, the recall was apparently based on one customer complaint (likely supported by later in-house testing). Third, the Avalung is a very small part of BDE's total sales. As a long time fan of Balck Diamond , I saw this recall as a very positive sign, since it showed that the concern for the safety of the extreme sport athlete that had always been the hallmark of Black Diamond as a private company continues under public ownership. A May 2009 article in Outside Magazine explains their riforous product testing, and their pro-active recall and legal philosophy; how many other companies would recall a product based on 1 complaint.

I am long BDE.



Disclosure: I am long BDE.

Additional disclosure: The ticker BDE now refers to Clarus, owners of Black Diamond and Gregory, and not the company listed on your site.