Jim Cramer - Mad MoneyBrunswick Corp.BCBUYJun 21, 2021
Like Thor, BC this has slid unfairly this year. Covid winners are unfairly pigeonholed as reopening losers. Brunswick's boats remain in high demand. Covid has given them not only a boost during the pandemic but represents a long-term game-change as Brunswick enjoys strong demand and back orders. Add to this excellent managers.
Monday is an investor summit, and the rising cost of gas will be discussed. The company expected to be de-cyclical after Covid, but that didn't happen. He fears they may lower guidance again.
The boat-maker and is considered unfairly as a Covid stock. Their products are sold out for a while, so this is far from falling apart as the pandemic fades. Likes it. Has tremendous pricing power.
50% from its revenues come from parts and services, predictable revenues. It doesn't rely entirely on sales. It will endure supply shortages and the street is overlooking this.
Hold it. He likes it. Some people point to their bad head-and-shoulders chart pattern, though that doesn't deter him. Their mobile homes have been sold out for a while. He owns one.
Last year's lockdown winners are perceived to be one-time winners as we reopen. Not so with BC. We're on the verge of the great outdoors season. Last week, they posted nearly 50% revenue growth, but shares barely budged though it made a new high today. They expanded capacity but still can't meet demand. There'll remain a boat shortage. It sells below next year's 13x earnings--cheap. It's a screaming buy, a secular grower.
Yesterday, this boat maker reported the latest in a string of blowout reports, with a huge top and bottom line beat with nearly 50% revenue growth and over 100% earnings growth YOY. There's a huge boat shortage in the U.S. Even adding production doesn't meet demand. BC raised its forecast for 2021 and 2022 from $7 to $8.25-8.75.
The king of boats, a fine way to vacation during Covid. They just reported a strong quarter with a top and bottom line beat and raised guidance, but the stock didn't move. Maybe we're moving into a seasonal trend when there's no boating.
They sell boats, and people can't travel to vacation, so boating has become popular. Boating is seasonal, but this year is different, because of Covid. The stock is up 6% in the last three months.
Top Short A classic case of a very economically sensitive business. Share prices up about 100% this year. Won't generate any earnings this year or 2010. People are evaluating it on the hopes of earnings in 2011, which has a 20X earnings multiple. Fair amount of debt on its balance sheet.
Like Thor, BC this has slid unfairly this year. Covid winners are unfairly pigeonholed as reopening losers. Brunswick's boats remain in high demand. Covid has given them not only a boost during the pandemic but represents a long-term game-change as Brunswick enjoys strong demand and back orders. Add to this excellent managers.