>Tom, > >Neither you nor Herb had or have the slightest idea what you are talking >about. > >Pentax is in better shape now than it was two years ago. What has changed >is that it has a major shareholder that owns enough shares to call the >shots. And that major shareholder has no interest in cameras, it just >wants to make money. It believes that it is in its best interests to sell >its shares to Hoya now for 770 yen than to hang on to them and see whether >the Pentax board can do better.
None of that matters John. We're not talking about how much money Pentax has, whether they are in better shape than previously because of turning a profit with the camera division, or anything like that. It doesn't matter whether their major shareholders have an interest in cameras. What does matter is that it's shareholders 'want to make money'. That's the reason for being a shareholder. That's an expectation that shareholders have. It's one that Pentax cannot ignore for very long. That's why all your arguments over whether Pentax produces good bodies, good lenses, is making money, etc., have had little bearing on the end result. What has happened is a scenario not unlike that which we were suggesting could happen two years ago. Even Pentax's higher-ups realize that without the backing of a larger firm, they likely can't compete effectively. From an earlier Bloomberg report including quotes from Pentax's former President Urano: ------------------- Pentax is losing market share in the camera business because of price declines and competition from Canon Inc. and Sony Corp. The company is counting on medical equipment including endoscopes, a business it entered in 1977, to spur growth. Hoya, whose market value of 1.73 trillion yen is more than 17 times larger than Pentax's, is seeking to expand sales of medical equipment such as endoscopes and surgical scissors to rely less on glass substrates used in semiconductor manufacturing. Pentax in October cut its full-year profit forecast because of price declines of parts used in digital cameras. The company projects 31 billion yen in net income for the year ended March, less than a previous estimate for 34 billion yen. Operating profit at the optical components division, which includes digital camera parts, is forecast to fall for three years, Pentax said in a statement in November. At its life-care division, which sells medical equipment, operating profit rose in the past three years. ``It is really difficult for Pentax to go our own way,'' Urano said. ``Hoya was the best selection. I'm truly worried about my employees.'' ------------------------- So who doesn't know what they're talking about? Tom C. -- PDML Pentax-Discuss Mail List PDML@pdml.net http://pdml.net/mailman/listinfo/pdml_pdml.net
