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Author Topic:   Investing in BC

jimh posted 08-20-2011 09:27 AM ET (US)
Has anyone considered investing in BC? That's Brunswick Corportion, the stock symbol, and not British Columbia, the Canadian province.
I notice that BC is getting a positive rating these days. Charles Schwab gives them an "A" or "Strongly Outperform" rating and a BUY recommendation. It has been a wild ride for shareholders. From a high of about $35-per-share, BC sunk to $1.82 in the Fall of 2008. (And, yes, that is a pun.)
BC has been trading above $20 for most of 2011, but in the past weeks declined to about $14.
BC Chairman Dusty McCoy presented a positive outlook with the company's second-quarter earnings statement:
""The retail marine market for 2011 is unfolding generally as we expected. We continue to believe that the significant decline in overall industry marine retail demand bottomed in 2010.

"The range of 2011 revenue and earnings growth expectations for the Company's results will continue to be governed primarily by marine retail demand...."
As boaters, how to you feel about marine retail demand? Planning on buying a new boat? A new motor? Planning on buying any shares of BC?
Destin_Dauntless posted 08-20-2011 10:19 AM ET (US)
Jim,
I am no stock expert but... debt to equity ratio is very high, sales are only at 8%, it pays very low dividends. Directors almost always speak in "happy thoughts".
The market sucks and so does the economy, so I'd recommend buying an additional boat and enjoy watching your cash go into that hole instead of the market.
K Albus posted 08-20-2011 10:35 AM ET (US)
I am considering buying a new Boston Whaler, a Conquest 235 to be more specific. I have been checking dealers in my area recently for any left-over 2010s or new 2011s, and have not been able to locate any within several hundred miles of my home. In general, it seems as though each of the dealerships has a number of the smaller boats (150s and 170s in all varieties) available, and maybe one or two of the really large boats. There do not seem to be a lot of the mid-sized boats sitting around in dealer inventory. This leads me to believe that Boston Whaler has done a good job of managing dealer inventories. I don't know if the same can be said about other Brunswick boat companies.
With regard to investments, I don't waste my time attempting to gamble on individual stocks. Most of my retirement funds are invested in index funds. It will be at least 15 years before I retire, so I essentially ignore the day-to-day volatility of the market.
Sourpuss1 posted 08-20-2011 11:02 AM ET (US)
I agree with Destin_. The numbers just don't support a buy.
Now for the gut check. If newer Boston Whalers were innovative, or of extremly high quality, I might be inclined to follow my gut over market trending.
Recent stock market swings aside, I am hedging as much as possible with my investments.
I'm still amused by news pundits who are afraid of another "recesion". When did the last one stop?
When folks visit from outside Michigan, they ask "why are all these stores closed?"
contender posted 08-20-2011 01:27 PM ET (US)
Purchase stocks that are AAA and AAplus, purchase stocks that are necessary like Health care, electrical companies, and cigarettes (yes cigarettes they pay way to many taxes to be snuff out by the government). Make sure they pay high dividends and sit back, this way you are paid if the stock goes up or down, you will be getting a check...
K albus; here in S. Fla there is a marine liquidators (they go around the state of Fla and confiscate unpaid boats.) A couple of months ago they had 3 very nice whalers (one was either a 27 or a 30 conquest) still under warranty, came with 2 275 merc's, T-top, radar and the works. The boat was very clean and went for around $80,000. considering the boat was less than two years old I thought is was a deal. This company gets about 20-30 boats a month, not always whalers but might be worth the look and they will bargain. Do not get me wrong but some times the boats are trash and some are primo... I think you can find the site on the computer if you do a search...
lakeman posted 08-20-2011 01:27 PM ET (US)
From my gut feeling of a small time investor, the glory days of a larger and larger boats in every drive way are over. The credit availablity and the economy/housing plunge took many new and old or would be boaters out of the market, or out of boating. The prices of new boats, maybe rightful, but is out of range for many budgets, the used boat market maybe hot, but, if you need to sell, you must lower the price. I forgot the price of gas, and many more must have things, like home theater, internert access etc. That give you pleasure year round have taken a big and bigger percentage of our budgets.
There will always be boaters/fishermen, but the numbers of boaters are ,IMHO, sure to drop percentage wise when compared to past decades of marine industry growth. My neighbor recently bought a marina, I feel he has no reason to worry about boating.
But to invest in BC, NO, but I'm not a day trader or good gambler.
Phil T posted 08-20-2011 01:40 PM ET (US)
More to chew on.
Boston Whaler has a lean production methodology. The days of having many different models on display are gone. It is rare to see more than 2-3 "leftovers" for sale. My local dealer (largest north of Boston) only has a few display models. The largest being the midsize Outrage.
From the comments on threads from new buyers, almost all have to wait weeks to months for their boat to be built.
Jerry Townsend posted 08-20-2011 02:30 PM ET (US)
I would buy another BW - but would not touch BC with a 10 foot pole - hell, I would invent a 15 foot pole. And that again, just points out there is often a difference between the company/product and the investor's minds/thoughts about that company/product.
The stock price has deterioated during the last several months - as has the rest of the market. The investor's main control for BC for quite some time has been increasing supply (selling) and decreasing demand (buying).
The current Schwab (stock checkup) information/rating is poor! An overall rating of about 45 (out of 100), 3 year growth rate of -14%, - et. al - and then a debt/equity ratio of 1177% !!
No Jim - would not touch the stock - well until the investors start seeing some growth, improved performance and I see some buying of the stock. --- Jerry/Idaho
WT posted 08-20-2011 04:56 PM ET (US)
Negative regarding demand. No and no.
The government is artificially keeping interest rates low. This causes savers to seek returns on their cash away from banks. Savers turn to the stock market seeking higher returns and are inflating the values in the stock market.
The trap door will open at some point. And the little guys will get burned like always. Pension funds, mutual funds, hedge funds are the little guys because it isn't their money that they are gambling (investing) with.
Good luck to all,
Warren
Sal A posted 08-20-2011 09:08 PM ET (US)
My shopping list of stocks to start nibbling at have tons of cash, high dividend yields, recurring somewhat predictable revenue streams etc. I don't see BC belonging in the same category as VZ, MCD, MRK, PFE, PG, JNJ, and yes, my favorite, Ford (F).
I am not an advisor, so always do your own homework (usual disclaimers). Small positions in the above stocks, added to the position of CASH, complement my most familiar position…. fetal.
Tohsgib posted 08-20-2011 09:49 PM ET (US)
I can't even talk about this online due to company policy but I will say...DO YOUR RESEARCH! And I do NOT own any BC for myself or my clients as a disclaimer.
Stevebaz posted 08-22-2011 06:52 PM ET (US)
These days I feel if you cant eat it dont invest in it.

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Author	Topic: Investing in BC
jimh	posted 08-20-2011 09:27 AM ET (US) Has anyone considered investing in BC? That's Brunswick Corportion, the stock symbol, and not British Columbia, the Canadian province. I notice that BC is getting a positive rating these days. Charles Schwab gives them an "A" or "Strongly Outperform" rating and a BUY recommendation. It has been a wild ride for shareholders. From a high of about $35-per-share, BC sunk to $1.82 in the Fall of 2008. (And, yes, that is a pun.) BC has been trading above $20 for most of 2011, but in the past weeks declined to about $14. BC Chairman Dusty McCoy presented a positive outlook with the company's second-quarter earnings statement: ""The retail marine market for 2011 is unfolding generally as we expected. We continue to believe that the significant decline in overall industry marine retail demand bottomed in 2010. "The range of 2011 revenue and earnings growth expectations for the Company's results will continue to be governed primarily by marine retail demand...." As boaters, how to you feel about marine retail demand? Planning on buying a new boat? A new motor? Planning on buying any shares of BC?
Destin_Dauntless	posted 08-20-2011 10:19 AM ET (US) Jim, I am no stock expert but... debt to equity ratio is very high, sales are only at 8%, it pays very low dividends. Directors almost always speak in "happy thoughts". The market sucks and so does the economy, so I'd recommend buying an additional boat and enjoy watching your cash go into that hole instead of the market.
K Albus	posted 08-20-2011 10:35 AM ET (US) I am considering buying a new Boston Whaler, a Conquest 235 to be more specific. I have been checking dealers in my area recently for any left-over 2010s or new 2011s, and have not been able to locate any within several hundred miles of my home. In general, it seems as though each of the dealerships has a number of the smaller boats (150s and 170s in all varieties) available, and maybe one or two of the really large boats. There do not seem to be a lot of the mid-sized boats sitting around in dealer inventory. This leads me to believe that Boston Whaler has done a good job of managing dealer inventories. I don't know if the same can be said about other Brunswick boat companies. With regard to investments, I don't waste my time attempting to gamble on individual stocks. Most of my retirement funds are invested in index funds. It will be at least 15 years before I retire, so I essentially ignore the day-to-day volatility of the market.
Sourpuss1	posted 08-20-2011 11:02 AM ET (US) I agree with Destin_. The numbers just don't support a buy. Now for the gut check. If newer Boston Whalers were innovative, or of extremly high quality, I might be inclined to follow my gut over market trending. Recent stock market swings aside, I am hedging as much as possible with my investments. I'm still amused by news pundits who are afraid of another "recesion". When did the last one stop? When folks visit from outside Michigan, they ask "why are all these stores closed?"
contender	posted 08-20-2011 01:27 PM ET (US) Purchase stocks that are AAA and AAplus, purchase stocks that are necessary like Health care, electrical companies, and cigarettes (yes cigarettes they pay way to many taxes to be snuff out by the government). Make sure they pay high dividends and sit back, this way you are paid if the stock goes up or down, you will be getting a check... K albus; here in S. Fla there is a marine liquidators (they go around the state of Fla and confiscate unpaid boats.) A couple of months ago they had 3 very nice whalers (one was either a 27 or a 30 conquest) still under warranty, came with 2 275 merc's, T-top, radar and the works. The boat was very clean and went for around $80,000. considering the boat was less than two years old I thought is was a deal. This company gets about 20-30 boats a month, not always whalers but might be worth the look and they will bargain. Do not get me wrong but some times the boats are trash and some are primo... I think you can find the site on the computer if you do a search...
lakeman	posted 08-20-2011 01:27 PM ET (US) From my gut feeling of a small time investor, the glory days of a larger and larger boats in every drive way are over. The credit availablity and the economy/housing plunge took many new and old or would be boaters out of the market, or out of boating. The prices of new boats, maybe rightful, but is out of range for many budgets, the used boat market maybe hot, but, if you need to sell, you must lower the price. I forgot the price of gas, and many more must have things, like home theater, internert access etc. That give you pleasure year round have taken a big and bigger percentage of our budgets. There will always be boaters/fishermen, but the numbers of boaters are ,IMHO, sure to drop percentage wise when compared to past decades of marine industry growth. My neighbor recently bought a marina, I feel he has no reason to worry about boating. But to invest in BC, NO, but I'm not a day trader or good gambler.
Phil T	posted 08-20-2011 01:40 PM ET (US) More to chew on. Boston Whaler has a lean production methodology. The days of having many different models on display are gone. It is rare to see more than 2-3 "leftovers" for sale. My local dealer (largest north of Boston) only has a few display models. The largest being the midsize Outrage. From the comments on threads from new buyers, almost all have to wait weeks to months for their boat to be built.
Jerry Townsend	posted 08-20-2011 02:30 PM ET (US) I would buy another BW - but would not touch BC with a 10 foot pole - hell, I would invent a 15 foot pole. And that again, just points out there is often a difference between the company/product and the investor's minds/thoughts about that company/product. The stock price has deterioated during the last several months - as has the rest of the market. The investor's main control for BC for quite some time has been increasing supply (selling) and decreasing demand (buying). The current Schwab (stock checkup) information/rating is poor! An overall rating of about 45 (out of 100), 3 year growth rate of -14%, - et. al - and then a debt/equity ratio of 1177% !! No Jim - would not touch the stock - well until the investors start seeing some growth, improved performance and I see some buying of the stock. --- Jerry/Idaho
WT	posted 08-20-2011 04:56 PM ET (US) Negative regarding demand. No and no. The government is artificially keeping interest rates low. This causes savers to seek returns on their cash away from banks. Savers turn to the stock market seeking higher returns and are inflating the values in the stock market. The trap door will open at some point. And the little guys will get burned like always. Pension funds, mutual funds, hedge funds are the little guys because it isn't their money that they are gambling (investing) with. Good luck to all, Warren
Sal A	posted 08-20-2011 09:08 PM ET (US) My shopping list of stocks to start nibbling at have tons of cash, high dividend yields, recurring somewhat predictable revenue streams etc. I don't see BC belonging in the same category as VZ, MCD, MRK, PFE, PG, JNJ, and yes, my favorite, Ford (F). I am not an advisor, so always do your own homework (usual disclaimers). Small positions in the above stocks, added to the position of CASH, complement my most familiar position…. fetal.
Tohsgib	posted 08-20-2011 09:49 PM ET (US) I can't even talk about this online due to company policy but I will say...DO YOUR RESEARCH! And I do NOT own any BC for myself or my clients as a disclaimer.
Stevebaz	posted 08-22-2011 06:52 PM ET (US) These days I feel if you cant eat it dont invest in it.