fietsbob

a broker can buy shares for anyone , only the ones and zeros get transferred internationally ..

invisiblehand

Yes ... there are lots of interesting tibits throughout the offering. I'm unsure. But my guess is that some of the language is standard and inserted as a matter of course.

I don't have it handy, but I thought that there was a tallying of Class A and Class B shares. (Could be a figment of my imagination so ...) Class B was limited to a range depending on how close they get to the 100,000 target. The question in my head while reading through it was whether a Class A share is equivalent to a Class B share with respect to value if it's sold.

linberl

I will completely defer to everyone else's knowledge of stock, etc., but I'm curious why you think they are selling? This is what they said the $ is for..."The capital raised will help us to expand our production capacity, grow our dealer network, and become the world's leading experts on folding e-bikes." I know they are working on a super light solution for e-biking on folding bikes. I know they are trying to get more local dealers because people are hesitant to buy before they ride, so maybe a brompton model where shops carry a few try out bikes. It's been a family business forever; the expansion is probably Hanna's idea. She's trying to move the brand forward from where it was when her Dad gave her the biz.

osric

I tend to throw money at lots of these kinds of small companies, knowing I will probably never see it back, but their prospectus doesn't even have a time frame for an exit. So I won't "invest" in this.

I also went to their web site to see what the customer experience was like and - HOLY COW! - it's a nightmare. You'd need to be a bike mechanic to figure it out. And when I finally faked my way through, picking options I had no understanding of, I had a bike that cost over $2,500. It's no wonder they're in financial straits, IMHO.

feijai

I've had a discussions with BF on this. Short answer: it's a complex bike to for them to build and to support. It was a significant portion of their sales, but they felt it wasn't worth the overhead.

I'm disappointed about it too.

maxxevv

Its only viable if they were build at Brompton quantities and scale. For a boutique build system at BF, they simply didn't have the economies of scale for such a complex design as the Tikit. They probably priced it wrongly to begin with and couldn't increase that price later as demand would have dived.

Abu Mahendra

Only today, yeah? Right. what a timely coincidence. And then you felt alluded and compelled to chime in.

Chinese drum? Nowhere did i say China in my post. I said 'Asia'. It's you banging the Chinese drum, lady. Goes to show how much you know about Asian markets. You conflate Asia with China when the PRC is only one possible place where a BF could potentially set up shop. The MUSA foldie model that you support is increasingly a dead-end.

pinholecam

So how does one sell the shares when he/she wants to?


15% is a bit less.
If it was 25%, I'd order a couple a year to sell over here.

maxxevv

Maybe you can sell it back to BF in return for bicycles in the future ?

CliffordK

I was wondering that. It sounds like they're selling paper stock certificates rather than going through the New York Stock Exchange or NASDAQ. Presumably a broker could convert them to cash. But, there may not be any market for the paper.

It clearly says Class B, "Non Voting". I haven't really voted with other stocks, but I was thinking that might be an option for a local company. At least to have the option.

It sounds like they're trying to even out their production. I assume sales boom from say March through September, and bust from September through February. While their bikes are semi-custom, I believe that most of them are built around stock frame sizes, stock mast sizes, and stock gooseneck sizes. So, they could get 1000 frames built and ready to powdercoat and assemble over the winter. Perhaps even powdercoating a few. Thus getting a jump on their next year's production.

CliffordK

I suppose I've gone through their website enough that it seems pretty straight-forward. But, it helps to have some idea of what one is looking for.

I've also ordered Dell computers online, specifying processor, memory, HDD, etc.

Part of what Bike Friday does is make everything "custom", so one can specify each part individually. However, one needs to have an idea of what the final bike will look like.

Maybe what they need is to start with a few stock models... then allow a customer to choose "stock", "custom", or "customize a stock choice". But, for me, I'd prefer just starting with full custom options.

I hate websites that force people to watch movies when they just want the facts. And this website seems pretty straight-forward.

Perhaps it would be worth it to collect some ideas to submit to them.

pinholecam

Yeah, on a closer look, its just stock certificates between shareholder and BF.
At most, I will be able to sell it onto someone else for an 'internal price' that is mutually agreed.

Its still that 15% discount that is not that attractive.
How many BF would I want to buy? and they are supposed to last.
I can't sell the bike off for a slight profit either and even selling off after a year of use at break even will not be easy.
So they could have been more generous with the discount; like 20-25% off and only able to buy 1-2 bikes a year.

From a ROI standpoint, its not that clear, since one has to find a buyer for the shares himself and its not entirely clear what the growth will be.

linberl

They have always had a 20% off winter promo so the discount is somewhat pointless. After reading everything folks have posted, my sense of it now is any investment is just to support the company not to make a lot of money. Of course, that's how I started out buying Apple stock, lol, and that turned out well.

invisiblehand

This is a good summary.

They need capital to purchase materials and parts in the winter to sell stock in the spring and summer.

They're at 80k when I last checked.

invisiblehand

Yes ... while you certainly could make money, there is notable risk.

ModeratedUser150120149

As a newbie wanting to buy a folding bike I took a look at what is on the market. Seems to me Bike Friday has a good niche product that needs some marketing smarts to make the company grow. BUT, as in many other products there is a finite market. Whether that number is large enough to keep them in business is beyond my current knowledge.


Another factor that may be driving the current situation is their aspirations. They may have aspirations of moving into a larger market with corresponding larger profits and owner income. In other industries that is pretty common. The real question then is whether they can compete in a bigger market. Or, is that over their head and makes them doomed to failure? Many companies have been solid in their niche small size and then collapsed when they tried to expand into a bigger market.


But, as a newbie, their folders like the Pocket Rocket and NWT appear to be superior to anything else on the market. So, there seem to be options.


Should anyone invest in the company? This isn't the stock market which is, at it's heart, a Greater Fool gambling arena. This is strictly an investment in the company with any income generated by the company: no hope of sale outside the company. So, the wisest course is to not buy except on individual negotiated terms.

ModeratedUser150120149

Buying stock in a small company is very much a vote of faith in that company. Much different than the Las Vegas style operation with big company traded stock. So, is Bike Friday a company that qualifies as reliable with good management?

I'm not sure. I wanted to buy a bike. I talked to their sales person on Tuesday. I was told I'd have a specification sheet proposal on Wednesday. I promised a response on Thursday. We had agreed on a budget so any discussion would be build details.

As of this moment haven't heard from Bike Friday. Admittedly he didn't say which Wednesday. So I may still get something, some day. But this sure raises significant questions about whether they are a good investment.

linberl

Any company can have an employee who overlooks something, or gets sick and calls out of work, etc. Give them a call and find out why they didn't respond to you. I sent my bike up there with a friend for an overhaul. She was driving and couldn't be sure she would arrive during business hours so they gave us an employee's cell # and that person was willing to come down and open up after hours to accept the bike - I consider that excellent service.

Call them and find out what the say about not getting back to you - how a company handles their "mistakes" tells you a lot about their management and culture.

invisiblehand

They got their 100k and counting ...

ModeratedUser150120149

Oh, I intend to. Thus is a yellow flag, not a red one.

Several possibilities. In a small business how they handle burps, and succession plans are two biggies.

tdonline

So, when would this dealer network start operating? I think Bromptons do well, in part, due to their in-store test and customize/buy online model. Most people aren't going to be comfortable forking over a 4 figure sum for a bike they haven't tested. Plus, all the folded Bromptons in a store look really cool and surely that has some influence on sales.

fietsbob

they because they dont have a one size fits all * bike or asian contract manufacturing, use their past buyers and put people

Interested in the bikes, and current owners, in touch with each other to talk about and try out other people's bikes.



*Brompton only makes one frame size.. they create adjustment by seat mast and handle bar mast choices.




...

linberl

I've been on the fence over a Pakit for a while now, but I am reluctant to buy one without test riding it. And I already own a BF. So I can imagine how reluctant a non-BF owner might be to a purchase without a test ride. Warm Planet bikes in S.F. sells them, and they are trying to get in a demo Pakit, probably medium sized, and they can swap stems for different riders. If there had been places around me that had BF to test ride I would have purchased one long ago. They could even do something where stores have a Haul-a-day in stock (since it adjusts to anyone) and test rides can be made by appointment for demos that circulate among a group of shops.

ModeratedUser150120149

I posted that Bike Friday did not send me the information as promised. Well, the problem was mine. Bike Friday did what was promised.

The email went to a spam folder in a computer I wasn't using. Seems a person who has the knowledge to set up a system with multiple computers would be smart enough to properly monitor the system.

Lesson learned and now in decision mode.

linberl

Laughing, because we have ALL done that at one time or another. Let us know what you decide.