Catching the Chill on the Rebound

I could not think of anything else to give for a title today and this one seemed to encompass a couple of notable news stories ranging from the spreading virus to the approach of Summer 2009.  This day marks many firsts which includes the first major failure of an American automobile manufacturer which in and of its own is groundbreaking but it is also being shadowed by the looming spread of a potentially pandemic virus.  Both have the ability to land a heavy body blow to the economies of the World and truth be told none of us yet know how it will play out.  We are approaching the tipping point as the economy has certainly begun to rebound but both of these situations have the ability to stop any recovery.   As of lunchtime today approximately 236 cases have been confirmed and will use our frequent writings here as a barometer tracking the spread.

With the grim news out of the way we will now switch to the chill portion of today’s rambling.  It is late Spring and with some scorching heat now occurring in parts of the region we are seeing a sharp uptick in searches for insulated items.  As a result we have rolled out the Contemporary Six Pack Cooler at an ultra aggressive price point.  We like the solid construction and attractive looks of this product over that of other brands.  It does not have the flimsy feel of lesser competitors.  The Gemline All Sport Cooler II is a remake of a popular earlier model from the same manufacture and like all of the cooler products from this brand feature safe PEVA lining.  We still sell items made from PVC as the FDA among others say they are safe but are glad to see a major vendor pulling away from incorporating these volatile materials.  Gemline has extended an existing line with the Vertex Cooler  which has been an annual best seller.  This particular item features there class leading logomagic which allows for easy dual branding.  The ability to use dual logos has been a huge selling feature this season as it allows customers to split costs.  Another opportunity for budget pruning exists when new less costly products are released such as teh Bungee Six Pack Cooler which we are using as a dual function product by stuffing a water bottle in the package.  We expect the trend towards bundled goods to continue as it gives the best dollar value on a weighted scale.

As many have heard by now industry giant Broder Brothers is threatening to declare bankruptcy next month if creditors do not relent to their demands for changes in terms.  This is much the same as what happened today with Chrysler but unlike that case investors would be wise to renegotiate with them versus taking a potentially much more severe hit.  The problems in securing financing continue for many of these firms and really they have no choice apparently.  Any failure of such a large firm would send terrible ripples down through the supply chain as many small embroidery shops would be left scrambling to find new suppliers that are willing to extend credit.   Investors seem to continue reflecting upon good times long gone instead of realizing we are in a much different economy.