Fox Factory Holding (NASDAQ:FOXF)

Company still has the founder on the board, who started as a motocross racer and developed a firm with a reputation as the best in the business. Prime competitor in the mountain bike segment is Tenneco, maker of Rock Shox, Marzocchi, and Manitou. Prime competitor in off-road is King, which has different suspension technology. Of note, they are the vendor for the shocks on the Raptor F-150, which is not selling this year as Ford re-tools their line for the aluminum version of the truck. The '17 Raptor, which goes on sale in '16-ish, is spec'd with Fox suspension. While details of their deal with Ford are not public, I'd be surprised if they don't move another 60,000 or so trucks off of that deal (240,000 shocks) -That's a lot of mountain bikes. Bottom line, this is a small company with a niche product that has a reputation for high quality.

Risks: they don't reinvest in technology, or stop racing. Racing is how they get their reputation, and their R&D. They also have a 41% owner in another publicly traded company that buys middle market guys. BOD for that company has two seats on the Fox board. -Lots of insider buying though.

All in all, I think a great pick with little downside through '18, provided people buy mountain bikes, UTVs, and Raptor trucks for another 3-4 years.

I do not see that many bike riders in Michigan these days, so I doubt that this company will be able to continue to grow at a reasonable pace without help from new markets like making shocks for the new Apple car with or without a lithium ion battery,