Sunday, May 13, 2007

Recreational Vehicles: Is this the Worst Industry?

If you look at the returns for the six major recreational vehicle manufacturers, during the last 12 months and even the last five years, two thirds of the stocks are trading at lower prices. It appears that high gas prices do have a strong effect on the sale of RV's. Investing in RV stocks might even be a play on lower gas prices, if you think they are going lower.

Coachmen Industries, Inc. (COA) has the Coachmen, Sportscoach, Georgie Boy, and Viking brands. It is also in the modular home business. The stock has negative earnings and a yield of 1.1%.

Fleetwood Enterprises, Inc. (FLE) is the number one manufacturer of RV's including American Eagle, American Heritage, Southwind, and Tioga. Extremely high forward P/E of over 470.

Monaco Coach Corporation (MNC) has the the Beaver, Holiday Rambler, Monaco, McKenzie, R-Vision, and Safari brands. It has a forward P/E of 19 and a PEG of 3.25, with a yield of 1.5%.

National R.V. Holdings, Inc. (NVH) makes luxury RV's such as Dolphin, Sea Breeze, Tradewinds and Tropi-Cal. The company has negative earnings.

Thor Industries, Inc. (THO) makes the Airstream and Dutchmen motor homes. The stock has a P/E of 14 and a PEG of 1.15. It pays a slight yield of .7%.

Winnebago Industries, Inc. [WGO], a famous name in RV's, has a P/E of 28 and a PEG of 1.3; it yields 1.2%.

Author does not own any of the above.

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