Pinhookers increased their profits at the recent Ocala Breeders’ Sales Co. February select sale of 2-year-olds in training even though their horses sold for less money, based on average price, than they did in 2009. The reason why pinhookers made money was that they had lowered their financial risk by spending, on average, fewer dollars per horse when they bought their stock as yearlings.
Going into the March 2 Fasig-Tipton Florida select juvenile auction, which has the fanciest pedigrees of any 2-year-old sale in this country, pinhookers were hoping the same sort of strategy would work again.
The 43 pinhooked horses sold at the OBS February sale brought an average price of $93,744, which represented a 12.7% decline from the comparable figure of $107,328 for pinhooked horses in 2009. The pinhooked horses this year had been acquired as yearlings for an average of $41,000, which was down 39.5% from 2009’s figure of $67,779.
The rate of return on investment for pinhooked horses, which takes into account an $18,000 breaking and sale preparation cost per horse, rose to 50.9% from only 18.9% last year. Meanwhile, the buy-back rate declined to 40% from 44%. Thirty-six percent of the 72 horses offered were profitable, which was an improvement over the 33% rate of profitability for the 103 offered in 2009.
Pinhookers spent a gross of $4.7 million for their 100 horses as yearlings that were cataloged for this year's OBS February sale. Their gross expenditures were down from the $7 million they spent for their 103 horses as yearlings that were cataloged in 2009. The pinhooked horses that ended up selling in 2010 grossed $4 million, which was below the gross investment pinhookers had in their OBS February horses, some of which returned no money to their consigonors because they were scratched or bought back.
A Tiznow—Six Pack Sally colt produced the biggest pinhooking score for an individual horse at the OBS February auction when his value escalated by $420,000. Carl Bowling, as agent, purchased him for $55,000 in the name of Straightaway Farm at the 2009 Keeneland September yearling sale. Bo Hunt, as agent, resold the colt for the sale-topping price of $475,000 at OBS in February.
Pinhookers have 157 horses cataloged in the Fasig-Tipton Florida sale that were listed as having been sold as yearlings. Their average price was $120,675, which is down 7.4% from the $130,000 yearling average for the 130 pinhooked horses cataloged in 2009. However, the median yearling price for pinhooked horses is $100,000 for both years.
Because the number of pinhooked horses in the Fasig-Tipton Florida sale catalog is up this year, pinhookers have more money invested based on the gross expenditures for their stock as yearlings. Their total is $18.9 million compared to $16.9 million in 2009.