Entering text into the input field will update the search result below

Black Diamond Recall

Jan. 06, 2011 9:42 PM ETCLAR
barna65 profile picture
barna65's Blog
1 Follower
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.