In a Nutshell ONEW is one of the US’s largest marine dealership groups and is working on the consolidation of the sector. The situation presents the key ingredients for a successful roll-up strategy: highly fragmented industry, proven operational playbook, seasoned management and financial resources.
Great article! I love the fact that the insiders own a lot of the shares. Only thing that concerns me is the fact that the sales of new boats during a crisis could decrease a lot.
Absolutely. That’s definitely one of the main risks and could hurt the company in the short run. However, this situation could also have a positive impact in the long run, as a recession period could help to further develop ONEW’s roll-up strategy. During the recession phase of the business cycle, it is expected smaller operators to suffer more than ONEW and this could increase the pipeline of dealerships to acquire and improve the purchasing prices. This is similar to stock markets: downturn periods are the best moments to buy.
Agree! With my own due diligence ( based on DCF) this stock is certainly a buy already, but with this kind of market I believe that it can still go lower. Therefore I will keep waiting a bit ( maybe that I open a first position after the earnings)
Taking into account that the company presents its results next May 5 and the uncertain scenario we are in, I do understand that it might make sense to wait until the earnings release to have fresher information
Interesting. Thanks for the write-up
Great article! I love the fact that the insiders own a lot of the shares. Only thing that concerns me is the fact that the sales of new boats during a crisis could decrease a lot.
Absolutely. That’s definitely one of the main risks and could hurt the company in the short run. However, this situation could also have a positive impact in the long run, as a recession period could help to further develop ONEW’s roll-up strategy. During the recession phase of the business cycle, it is expected smaller operators to suffer more than ONEW and this could increase the pipeline of dealerships to acquire and improve the purchasing prices. This is similar to stock markets: downturn periods are the best moments to buy.
Agree! With my own due diligence ( based on DCF) this stock is certainly a buy already, but with this kind of market I believe that it can still go lower. Therefore I will keep waiting a bit ( maybe that I open a first position after the earnings)
Taking into account that the company presents its results next May 5 and the uncertain scenario we are in, I do understand that it might make sense to wait until the earnings release to have fresher information
earnings in two weeks will tell us more
Yes. I'm curious to see how demand is evolving