"The Liquidator"

Reid 2022-10-23 18:12:54

"The Liquidator"

is a movie that can be used as a textbook. Of course, it is necessary to abandon the affections of father and daughter, mother and daughter, and men and women!
Described as a Wall Street asset liquidation master Mr. Garfield (Garfield? Funny), is a scumbag, seems to show the attitude of some directors!
And those middle-class people who run family businesses are of normal height, but they often indulge in the glory of the past years, and even imagine the future prosperity!

Why was this New England wire and cable company brought into the field of liquidation hunters?
That perfect balance sheet can be said to be colorful! Since the Great Depression in the 1930s, the company has not borrowed any more, with abundant cash, clear residual value of assets, and various other cash flow-generating subsidiaries that have been continuously acquired and acquired!
The converted book value is $25/share, but the stock price is only $10!
Can you keep the Wall Street Falcon coveted, you say?

In the legal society of the United States, the role of lawyers is too important!
So we see the chairman's lawyer daughter in the film looking through history, finding flaws, and finally getting a purchase suspension order issued by the magistrate.
However, the suspension is time-limited, so it finally ushered in a general vote on whether to liquidate at the New England Wire and Cable Company's general meeting of shareholders!

Before the vote, the chairman, who represented the interests of the majority of workers, made a tearful statement, pouring out the significance of the company's continued production.
Yes, he accused the Wall Street liquidator of not creating or building anything in kind, but he could decide the fate of wire and cable producers by virtue of the thickness of funds and legal incentives!
Yes! However, the opponent answered better!
The location of the wire and cable company used to be a concentrated production place for carriages and harnesses XX years ago. However, do the shareholders here still want to become a member of such a company? Will it be inspired by the local production of exquisite whips today?
Even if the stock price has not changed for 10 years, even if the income of grassroots workers has not kept pace with the price increase for several years?

There is no doubt that in the end, the liquidator wins and the shareholders get their due return!
Of course, workers will lose their jobs, and the wire and cable industry will be shut down!
Under the trend of globalization and the prosperity of new technologies, how can traditional industries dance in accordance with the old rhythm in front of exchange rate, cost and other factors? Operators, there are too many things to learn!

The film is also reminiscent of Mr. Buffett playing "Generals" (undervalued investment) in the past! ----Dempster Mill Manufacturing Company
1

In 1962, Bill Scott assisted Buffett's men, Harry Potter settled in Dempster Mill Manufacturing Company,
----Reduced inventory by $550,000, low price Cleared equipment, closed 5 loss-making branches, raised the price of repair parts, closed loss-making production lines, and fired 100 employees; (9 measures were described in the 1963 annual report)
Under the large-scale contraction of the main business, aroused the local people They believed that Buffett was a ruthless liquidator who came to liquidate the largest local company; in
1963, after the sale plan caused an uproar in the local area, the citizens believed that the acquisition or closure of the only large company in the area would bring a lot of Unemployment;
the local newspaper (Beatlis Daily Sun) reported the situation, and people raised pitchforks in protest!
September 29: The day before the public sale, the town raised $2.8 million, of which $1.75 million was paid to Warren and the remainder was reserved for expansion operations;
finally, Charles B. Dempster, grandson of the factory founder. . Dempster )-led investment group won the right to buy, regain control of the company, the town's fire sirens and bells rang in unison, making Warren tremble!
Recalling that everyone in town hated him and swore never to repeat such incidents - profited, but spurned;



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Other People's Money quotes

  • Lawrence Garfield: [In response to Jorgy's speech] Amen. And amen. And amen. You have to forgive me. I'm not familiar with the local custom. Where I come from, you always say "Amen" after you hear a prayer. Because that's what you just heard - a prayer. Where I come from, that particular prayer is called "The Prayer for the Dead." You just heard The Prayer for the Dead, my fellow stockholders, and you didn't say, "Amen." This company is dead. I didn't kill it. Don't blame me. It was dead when I got here. It's too late for prayers. For even if the prayers were answered, and a miracle occurred, and the yen did this, and the dollar did that, and the infrastructure did the other thing, we would still be dead. You know why? Fiber optics. New technologies. Obsolescence. We're dead alright. We're just not broke. And you know the surest way to go broke? Keep getting an increasing share of a shrinking market. Down the tubes. Slow but sure. You know, at one time there must've been dozens of companies making buggy whips. And I'll bet the last company around was the one that made the best goddamn buggy whip you ever saw. Now how would you have liked to have been a stockholder in that company? You invested in a business and this business is dead. Let's have the intelligence, let's have the decency to sign the death certificate, collect the insurance, and invest in something with a future. "Ah, but we can't," goes the prayer. "We can't because we have responsibility, a responsibility to our employees, to our community. What will happen to them?" I got two words for that: Who cares? Care about them? Why? They didn't care about you. They sucked you dry. You have no responsibility to them. For the last ten years this company bled your money. Did this community ever say, "We know times are tough. We'll lower taxes, reduce water and sewer." Check it out: You're paying twice what you did ten years ago. And our devoted employees, who have taken no increases for the past three years, are still making twice what they made ten years ago; and our stock - one-sixth what it was ten years ago. Who cares? I'll tell you. Me. I'm not your best friend. I'm your only friend. I don't make anything? I'm making you money. And lest we forget, that's the only reason any of you became stockholders in the first place. You want to make money! You don't care if they manufacture wire and cable, fried chicken, or grow tangerines! You want to make money! I'm the only friend you've got. I'm making you money. Take the money. Invest it somewhere else. Maybe, maybe you'll get lucky and it'll be used productively. And if it is, you'll create new jobs and provide a service for the economy and, God forbid, even make a few bucks for yourselves. And if anybody asks, tell 'em ya gave at the plant. And by the way, it pleases me that I am called "Larry the Liquidator." You know why, fellow stockholders? Because at my funeral, you'll leave with a smile on your face and a few bucks in your pocket. Now that's a funeral worth having!

  • Lawrence Garfield: Since when do you have to be hungry to have a doughnut? It don't taste better that way.