Polaris Industries, Inc. (NYSE:PII)
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Designs, engineers and manufactures all terrain vehicles, snowmobiles, and motorcycles and markets them, together with related replacement parts, garments and accessories through dealers and distributors located in the United States, Canada and Europe.
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Polaris is the leader in the off-road recreational vehicle market, a market that has actually been doing quite well since the recession lifted and financing improved. It is run by veterans and has a nice distribution system here in the US and a growing one internationally. They are just getting started overseas, especially in India and China, and recent acquisitions in motorcyles will help distribute sales outside of off-road (where Polaris is having a lot of success in side-by-side vehicles, the best growing market). Furthermore, Polaris has performed quite well in Europe, too, where no one is really doing all that well. So overall I like the market, the company, the management. Margins may take a little hit here in the next quarter or two as some COGS increase and they won't be able to pass on the prices. But it's a short-term. If consumer spending continues and financing doesn't freeze up, then Polaris will outperform.