Winnebago Industries, Inc. (NYSE:WGO)

No Debt, Favorable Name as Baby Boomers Retire to their Motor Homes

WGO has a good earning and solid balance sheet and is currently selling at a low P/E. Company maybe cyclical, but as soon as the economy recovers and more and more baby boomers retire and spend money on toys like RV’s, WGO stands to benefit.

HG

I think this stock is trading at a huge discount to its fair value.

Who knew they would still around. Little debt. Experience management. Good control on costs. Small increase in business could do wonders for them.

On the other side, there are other player in this space, but none so well known. So if this segment enjoys a rebound so will WGO.

I like WGO because they make economical RV's, many other pricey RV companies have gone out of business or are on their death bed, but WGO has a competitive product that is relatively affordable. The people that were out buying the Fleetwood coaches are now going to rethink buying such an expensive model and gravitate towards the more economical Winnebago models. Of course, if the economy suffers WGO will suffer, but I believe most the carnage is over and we can anticipate slow growth and put some positions in on this, using this pullback in the stock market as an opportunity.

Gas prices and slow growing economy

Durable good orders have been up the last couple of months reflecting more high end items are being purchased. With gasoline prices finally easing somewhat, WGO should see better top line numbers. I am hopeful that this at the very least will be a hedge against my long oil picks.

Low Public Opinion with High Relative Strength

There will always be a market for Recreational Vehicles and Winnebago is like IBM - everyone has heard of them and everyone knows what they build. This company is over 50 years old and despite the bad economy- double dip or not - Winnebago will pull through. I think it will outperform on the long. It's a big country and there a portions of it where you can't take a train or a plane and driving in a car would mean pulling a trailer. A certain segment of the RV community likes having everything under one roof - ie Class A and C motorhomes. I am however, not sure if the upper-end Class A's can continue to be built forever. They are so expensive, that there may come a day when the market reaches saturation of these "Cadillacs". I personally, would like to see a return to a more modestly-equipped Class A, like they had in the 1970's, for example. I don't need granite countertops and track lighting and leather couches. I do need a motorhome for comfortable camping and traveling, that is affordable.

Gas is always going to go up in price.

oil pricing and the economy is still very scary

This economy is far from rebounding. RV sales will increase after 2 years as there will be pent up demand. (In my humble opinion)

Winnebago has been a mainstay company in Forest City, Iowa for decades. Loyal local employees respond with flexibility to the ebb and flow of the RV market. While their numbers were reduced to about 1/3 over a year ago, production is gradually returning to 100% as demand for quality, innovative manufacturing is on the rise; especially as more baby boomers' interest in this lifestyle blossoms.

I think winnebago will underperform because as the economy tightens people will have less money for fun!

Families paying down debt, less disposable income and continued unemployment mean recreational activities suffer i.e. RVs from Winnebago.

A very well run company in a beaten-down and wildly misunderstood industry. I might eat some red ink on this in the short run, but look at this company's position in the RV industry and its financials, and they are going to be the dominant player in this business by the time we get three-five years out.

Unusually high call volume at $12.5 & $15 for 3/10

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