Investment firms like to follow industries that include companies whose stock prices are likely to increase, which explains why Rainier Research, Portland, Ore., has initiated coverage of four RV industry firms.
The companies are full-line RV manufacturers Coachmen Industries Inc., Monaco Coach Corp., National RV Holdings Inc., and diesel pusher chassis supplier Spartan Motors Inc., according to Jeff Tryka, senior equity analyst at Rainier.
“Although we have seen signs of significant improvement and long-term growth prospects for the industry, we could still see some bumps in the road,” Tryka said. “Shaky consumer confidence and capacity issues with some manufacturers could act to slow the recovery.
“However, we are confident that the road for the RV industry over the long term is very positive,” he added.
Tryka believes there are three positive factors in the RV industry’s favor including:
The huge Baby Boom Generation reaching its peak RV-buying age of 55.
A shift since Sept. 11 towards vacations with family and friends.
Dealers have sold-off their excess inventories placing them in a position of needing to order new product at more robust rates in order to avoid losing potential sales.
Rainier specializes in identifying attractive small-cap equities for institutional investor clients. It is neither an underwriter nor a market-maker and its employees are prohibited from owning shares of any company with a market capitalization under $3 billion.