Fender stock buyers will gently weep

NEW YORK: The iconic maker of guitars favored by Clapton and Hendrix is riffing on an IPO valuation of 20 times earnings. But Fender has questionable global expansion plans, depends on a big shaky customer and generates only pick-thin margins. There's too much to make investors fret.

Fender Musical Instruments on July 9 set a price range of between $13 and $15 a share for its initial public offering. The guitar maker would be valued at $395 million at the top end of the range. Private equity firm Weston Presidio is selling 3.5 million shares, decreasing its ownership stake from 43 percent to about 18 percent.