Since the start of the year RV retailers and manufacturers have had a slow bleed to their stock prices. It must be because investors are worried about the proposed steel and aluminum tariffs by the new presidential administration. We will see if this happens but even if it did it should not affect these companies top line growth in the long term. This is happening despite most companies reporting growth in revenue across the board. In fact in Camping World Holdings case last year in 2017 they had a reported 4.8 billion in revenue while guiding that future 2018 guidance is 5 billion. That must not have been enough for investors wanting more. Right now the price of Camping World Holdings has decreased 56% since the start of the year.
This graphic goes to show how sold off Camping World Holdings is despite only good guidance. In fact in the last week the CEO and a director have taken bigger positions in CWH typically showing people there is a vote of confidence in the company. The CEO, Marcus Lemonis, has bought 40,000 shares in the last week. This is roughly the equivalent to around 800,000 dollars worth of stock. That says it all right there.
Having Marcus Lemonis at the helm of this ship is a good thing in my eyes. I have listened to a few podcasts with him on the James Altucher Show. He is implementing a good culture at Camping World Holdings. One that I would want to be apart of. If you want to look into these podcasts look on itunes and the James Altucher Show. The podcasts he is in is numbers #255 and #51. There are also numerous other clips online with him if you want more information.
This short term trend cannot last long as the secular growth for this industry and this company look positive. This harkens back to a Warren Buffett style of investing. Waiting for a good company to come in at good price. This company has good management and has the capacity to suffer. Capacity to suffer means they can use their earnings now and reinvest it in itself for the patient investor. In fact that is what they have done. They acquired other RV retailers and said that there will be mid to single digit sales increase for their own same store sales for 2018.
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. In other words do your own work people. This is only for entertainment purposes.
Adios amoebas, and have a good day people.
