Mutual fund manager Ken Heebner loves certain RV company stocks so much that he has invested 13% of CGM Focus Fund’s $460 million in assets in RV company equities, the Wall Street Journal reported today (June 18).
Now that the war in Iraq and terrorism are not dominating the news, Heebner believes the RV industry’s “growth will resume,” he told the Journal.
Heebner believes an economic turnaround is on the way and with the Federal Reserve easing interest rates and the federal government passing a stimulus package, “there are no real obstacles to growth” for the RV industry, he said.
Industry growth will mean higher profits and, thus, higher stock prices for the more profitable publicly-traded RV firms.
Heebner told the Journal that he bought Thor Industries Inc. stock “a few years ago” when it was $24 a share, and on Tuesday (June 17), Thor stock closed at $40.95.
(Thor completed a two-for-one stock split last July, so if Heebner bought the Thor shares prior to the stock split, his Thor shares would now be worth the equivalent of $81.90 a share.)
Heebner also bought Fleetwood Enterprises Inc. stock about six months ago for $6.80 a share, and it closed on Tuesday at $7.67 a share.