Johnson Outdoors, Inc. (NASDAQ:JOUT)
The Company designs, manufactures and markets outdoor recreation products in four businesses: Marine Electronics, Outdoor Equipment, Watercraft, and Diving.
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Recs
This company will experience strong growth over the next 20+ years. Practically have a monopoly on tents, fair price to start a position
Recs
Consumers are gaining confidence and they are a discretionary income play. they've gotten their balance sheet in a good spot. their marine electronics are doing great and will reflect in the results for the next two quarters.
Recs
Johnson Outdoors has been kicking the can near its 52-week low. The company was recently hurt by declining (tent) sales to the US Military. However, my contrarian scenario envisions the company recovering the slack in demand from the governmnet via an increasingly summer of '08 trend - the 'stay-cation', defined here as desitnations within a full tank of gas driving range from the consumer's home. This would include an uptick in camping at State and National Parks. I believe this trend goes hand in hand with the price of gas at the pump and as such will not reap full fruition in JOUT's shareprice until sometime next year. Again, low beta that will trounce the market on risk adjusted (and real) basis.
Recs
This stock is currently selling for less than book value. While I don't think that the earnings will increase dramatically in the future given cuts in discretionary spending, I do think that it will perform better than the S&P over the next year.
Recs
A Value Proposition
Recs
BkV, CF, Choppi
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Fool UK
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