Some years ago, actually 5 years, I was working in a French company called ST Dupont.  Even I did not stay long in this company (only 1,5 years),  I keep many memories of that period.

I think that is due to mainly 2 reasons.

First, the location. Indeed ST Dupont is located in Savoie near to Annecy. This place is particularly attractive because it is a nice combination of the mountains and lake which is offering many different views and sightseeing.

And still today, 5 years later, i keep going Annecy for holidays to enjoy this nice area.

 Famous view of Annecy city

 Lake and Mountains

The second reason to keep these memories is the company itself.

Indeed, ST Dupont is a company of more than 100 years old which is producing luxury products. The most famous are lighters and pens but actually STD has a full line up of products aimed for men (and a little women).

This company has for main share holder a Chinese tycoon from Hong Kong who bought it 20 years ago.

In this field of men accessories, the competition is very tough with big company like Mont Blanc / Dunhill / Cartier /....

And unfortunatly, despite several efforts and attempts last 7 years, STD could not give more modern and fashion image to its line up.

This situation lead STD in financial crisis beginning of 2006. Then as immediate results, and probably with some intention of main share holder, the price of the STD share in stocks exchange dropped from 4 euro (end of 2005) to 0,06 euro (august 2006). 

 Of course such situation is very much favorable for speculation and the main argue point between the "small" investors was: "STD will bankrupt or not ...?"

It is true that knowing the background of STD, I did not buy any stocks even if nearly free of charge at that time.

But last December, thanks to some results less bad than expected, the stocks rose up to 0,2 and then 0,5 euro.

So taking opportunities of my holidays free time, i studied this story more in details and finally decided to buy 6500 stocks for an amount of 3000 euros. My purpose is not to get a huge profit but more to train and understand more the stock exchange mecanism.

So, after 2 days, the price increased of 8%, it means a profit of 240 euros (120 /day)..... but if I do not sell on good timing, no profit ... :-)

So, why I am writting this story  ..... ?

Of course not for the 240 euros of profit ==> 2500 euros / month.

In fact, 2 main reasons pushed me to write:

1) Just by sitting in my sofa, playing with my computer and listenic music, I could earn money

2) the amount i "earned" is bigger than the average salary of the employees of ST Dupont factory in Annecy which are additionnally fearing about their future (Still STD financial situation is not good).

So my conclusion is that now there is no respect for the people who are really making the products and no respect for the know how and experience.

Indeed last century, we moved from hand crafted products (top of know how) to Industrial products and now to .... far east production.

Actually, now company policy is "factoryless" company. It means define the products but surely not make it by yourself but ask factories in low cost countries to do it. Nobody wants to produce in Europe for Cost, Pollution, regulations, ..... and many others disvantages.

Now to manufacture any kind of products is just becoming a "Service" which can be asked to any kind of plant in the world. In that sense, factory employees have not anymore importance.

Then what is the future of ST Dupont .... and my stocks...?

1) For ST Dupont, I do not think this company will disappear because the ST Dupont name can be very valuable for LVMH or others big group in the luxury goods world

2) The factory of STD in Annecy has probably a limited future. I can imagine that the future of the lighters / pens and others men accessories is to be produced in China (Wenzhou province) as Burberry is now doing.

3) ... and my stocks ..... I know that is not fair but their prices will really rise up only when STD will announce some changes in the "production strategy".

In fact, what is now living STD is what everyday some companies are living.

How to keep competiveness in a worldwide market..?

In case, of Dupont, it is especially interesting because the products are not only industrial or manufactured products but they are suppose to bring some dreams related to the luxury.

So the story of ST Dupont is just a face to face between dream and reality.

More informations:

www.st-dupont.com   http://fr.wikipedia.org/wiki/ST_Dupont   http://cbandiera.free.fr/std/  http://www.mywenzhou.com/   http://www.chinatoday.com.cn/English/e20033/wenzhou2.htm