Drew Industries, Inc. (DW)

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

As the economy improves, the RV market will pick up. Also (unfortunately for Americans, but good for DW) I think more Americans will be moving towards manufacured houses.

Baby boomers are hitting that ripe old retirement age soon and this stock is cheap right now!

It may take awhile, but this will come around.

Well managed company also recommended by Hidden Gems. Great buy in low $20's; will be > $30 in next 18 months.

I think this stock is a keeper. Price is low.

Bent

Baby boomers are nearing retirement and travel is always at the top of 90 percent of retirees' lists. While the manufactured housing products segment may slow somewhat, the recreational vehicle segment of Drew Industries is primed for profits.
This well run small cap is another company with big reward potential. They have solid management, good inside ownership, and a line of products in growing demand. This company has solid ROE and ROA, and is trading at a nice discount.
Go long,
Fool On!!!

for the price it is to good!

i expect a big increase huge!!

This is a reply to rapid robin.I think now is the time to buy. two years ago RapidRobin was dead on. I have to look at what you are saying, and to me it says buy! My preference would be to buy now while its low and hang on. At what point in the next year do you decide to buy? After its gained 1%?, 2%? 5%? how much do you want to cut into your growth?

Boomers are booming, RV's are not that expensive to drive to winter quarters and back if you tow a Mini or a Fit. And, oil will be at 70$ a barrel in a year, and will probably hover between 70-100 for another 5 years before it climbs until we don't need it anymore because it's too expensive. Higher prices will cut demand, more efficient vehicles are on their way, and (tongue in cheek here) Barack and Gore will get us to energy independence in 10 years (with Pickens help) so that ought to put a damper on oil prices for a while.

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ROE: 5-Year Average > 20
ROA: 5-Year Average >10
ROIC: 5-Year Average > 15

Price/Book Near 1 (1.44)
Current Ratio > 2
Good Insider Ownership ( > 10%)
Low Amount of Debt (Less than .1 Debt to Equity)
Free Cash Yield > 10 %
Fair Value of $21.72

Top Mutual Funds have been buying/adding recently.
Demographics point towards greater RV sales, of which DW is the market share leader.

DW has been beaten to a pulp by market expectations it will suffer disproportionately from the price of oil and recessionary environment. I think it has been too severely punished, having lost 2/3 its price in the lst several months. It is now at a 4 year support level

With rising gas prices, there is less money to go towards leisurely pursuits and RVs become increasingly more expensive to operate.

Bearish candle and this one is heading down again

hg

Expanding globally, but times are still tough for the RV market.

DW is trading at a 45% discount to its intrinsic value. This is a great value stock with a giant growth upside with the baby boomers traveling around (if they can afford it). Great long term pick in my book.

the sell off panic is almost over

5 star gem