Showing posts with label gadgets. Show all posts
Showing posts with label gadgets. Show all posts

Wednesday, May 25, 2011

SRAM Goes Public

On April 29, 2011 a new company, SRAM International Corporation, was incorporated for the purpose of becoming a holding company with a 100 percent ownership interest in SRAM, LLC.  SRAM is the owner of RockShox, Avid, Truvativ, Zipp, and Quarq power meters.  Reuters (and many other sites) has reported that SRAM International has filed with regulators to potentially raise $300 million with an initial public offering (IPO) of common stock.  SRAM International plans trade to under the "SRAM" symbol, but it has not yet been determined which market to trade on, NASDAQ or NYSE. The number of shares that are planned to be released nor the expected value of the shares was released.  J.P. Morgan, BofA Merrill Lynch, and Morgan Stanley are the lead underwriters on the deal.

Reasons to Go Public

According to Bicycle Retailer, the purpose of the offering is to repay debt to Trilantic Partners. Trilantic (formerly known as Lehman Brothers Merchant Bank, the buyout arm of Lehman Brothers) invested $234.8 million in SRAM in September 2008 plus a 10 percent annual preferred return.

SRAM Stats

Recent documents filed with the SEC provide a few interesting facts about the world’s number two bike component maker:
  • From 2006 to 2010, SRAM grew revenues about 17% per year to more than half a billion dollars in 2010.
  • The company improved operating margins from 8% to 19% which points to increasing profit margins.
  • Net earnings (profit) in 2010 were $50 million.
  • Aftermarket sales are increasing and the company credits improved marketing
  • About two-thirds of company sales originate from the OEM segment with the remainder in the aftermarket.
  • The company estimates it holds about 15 percent market share in the $3.5 billion bicycle component market.
  • SRAM holds 550 patents.

Experts Say


According to some financial analysts, SRAM’s pending IPO could benefit from the current positive state of the capital markets.
“Timing is everything in the M&A business and the financial business,” said Laurence Levi, president of VO2 Partners, an investment firm focused on the specialty sports equipment sector. “A year ago, the market for IPOs was pretty anemic; today it’s pretty hot. A bunch of IPOs becoming active, specifically in the lifestyle market.”
Claude Proulx, an analyst with BMO Capital Markets, had this to say: “The stock market has done quite well in the last 12 months and the S&P 500 is not far from its all time high.”

In or Out?

Well that's it - time to empty out the kids' college funds and dump them into the bicycle market.  This way, I can validate my component upgrades as spending on SRAM parts will ensure my kids get the best education money can buy.

Sunday, May 8, 2011

Are you Ready for Hydraulic Shifting?


Do you find yourself replacing shifter cables on a regular basis due to riding in muddy conditions?  Are you tired of cable stretch?  Frayed ends?  Pinch points?  These may all be a thing of the past.  A high end German component company, Acros, has produced a small batch of hydraulic shifters - right and left shifters, front and rear derailleurs, and all the hoses filled with mineral oil.  Acros displayed their completely sealed product, the A-GE system, at the Sea Otter Classic last month and it has drawn plenty of attention.  You can find plenty of articles discussing the A-GE system on many sites such as Pinkbike, Bike Radar, Bike Mag and Bike Rumor.  I am by no means any sort of subject matter expert so I will simply give you the gist of what all these sites are reporting.

Dream the Design
This is not the first attempt at a hydraulic system and this isn't even Acros' design.  These hydraulic shifters originally appeared at Eurobike in 2006 as designed by Christophe Muthers as 5-rot.  Due to limited resources, Muthers was unable to get the idea to production on his own.  Muthers approached Acros in 2009 to complete the product where Muthers was hired on the R&D team.  With some minor redesigns, the hydraulic shifting system was reborn.

Benefits

The first benefit is in the shifting ability.  Without cables and wires, the A-GE system promises silky smooth shifting that should not change over time due to the sealed hydraulics.  But what about fade, as you experience with hydraulic brakes?  Because shifters don't face heat cycles as you would see with brakes, this shouldn't be a concern.  Actually, it is predicted that, barring a epic fail of the sealed system, these hydraulics may last indefinitely. 

Okay, improved shifting is fine, but running hydraulics must present a weight penalty?  Well, according to Acros, the A-GE system is 150g lighter than SRAM's XX and 175g lighter than Shimano's XTR.  This claim includes all shifters, derailleurs, cables and housing.  Impressive. 

Pricing

Of course, with all these added benefits over XX and XTR, there should be a hefty price tag.  You wouldn't be incorrect - it is anticipated that for a cool $2,000 USD you can have your own A-GE system.  What?  Too steep?  Ya, no doubt.  Keep in mind this is the first run and at production level of 250, the price seems to be reasonable, all things considered.  Once the A-GE system goes into large scale production, expect the price to drop.  Once there is market saturation, the price will come down even further.  Still, even after the price hits the bottom, you have to expect that these will still cost quite a bit more than XX or XTR if you are getting better shifting at a lower weight. 

What Does the Future Hold?

This is a huge step in technology.  Similar to when hydraulic brakes entered the market, expect a few other companies to jump on board and drive each other to create improvements and push the price down.  Hopefully there will be some entry to mid level offerings that are a bit more wallet friendly.  Still, it will be a few years before these become a fixture on the Alberta racing circuit, even if there is a more 'mid level' offering for those of us who have to buy our own parts.

It will be interesting to see how far behind the 'big boys' SRAM and Shimano are on this movement.  In 2006, Shimano published a patent for hydraulic shifting mechanisms.  It would have seemed like a natural fit to introduce them to the dual control levers, but since Shimano dropped their dual control line for 2011, that seems like the least likely scenario at this point.  If the user feedback from users on the A-GE system is positive, expect the race to be on for SRAM and Shimano.

This still doesn't address my concerns with rear derailleurs and the long cage that can bend or snap off with minimal impact.  Perhaps Shimano and SRAM are focusing on internal gearing such as the Alfine rear hub or the Hammershmidt crankset?  Both require further improvements but if you were running one of these component giants, where would you want to focus your R&D?  Internal gearing or hydraulic shifting?

Saturday, January 22, 2011

New Add-ons for GoPro

It wasn't too long ago that I posted my Christmas Wish List and I noted that I would like to have a GoPro 1080p HD Camera.  I noted that because I am cheap, the 960p would be what I would get myself if I was shelling out the cash to purchase one of these as the features on the 1080p were more than what I required.  Other than the 1080p recording capability, the biggest difference was the expansion capability of the 1080p model.  Thankfully, my wife is amazing and decided to get me something I wouldn't buy myself.  At the time I told her it was too much but now I am glad she did get me the top model because there was a recent sneak peak of some of the expansion packs that will soon be available. 

According to engadget.com, GoPro has introduced a clip-on LCD screen that not only shows what you are viewing but displays battery life as well as an external speaker.  There is also a battery bacpac that will allow you to carry two batteries.  They have also created a new back cover for the housing if you are intending to get an add-on to accommodate the additional bulk.

Then, there is the new GoPro 3D offering.   According to the article, the quality is quite amazing considering how compact the camera is.  To upgrade your current 1080p camera to 3D would require you to purchase an additional 1080p camera and a 3D housing designed to fit both cameras.   

I have only had the opportunity to put together two videos to date but I suspect these new expansions will be worthwhile improvements to the capabilities of the GoPro camera.  The battery expansion like would seem like the most useful as you could film a great deal longer and not have to worry about your battery running out or switching batteries during your ride.