Thor Industries (THO)

[EricL]

If anyone has been thinking of Thor Industries (THO), it is looking awfully attractive after the big sell-off.

It's been hit by aluminum/steel tariff talks and weak performance from Camping World, but its business seems to be doing just fine. It's shown strong earnings growth and has been paying down debt from recent acquisitions.

Currently trading below a forward PE under 10 with today's decline.

[divmenow]

Earnings are out on Wed. From what I'm hearing they most likely will miss. Company has been in a free fall. Lets just hope it's come down enough where it has bottomed and not drop another 10-15%. Tomorrow should be interesting!

[divmenow]

Hey Eric whats your feeling on THO now?

[EricL]

(11-16-2018, 06:30 PM)divmenow Wrote: Hey Eric whats your feeling on THO now?

Being hit by tariffs, rising rates, and fears of an economic slowdown.

It's a cyclical company, so since we are late in the economic cycle, its being sold off ahead of the anticipated drop in earnings, hence the <8 PE.

That said, I do continue to believe the company is well run, and they've been making moves to acquire competition in recent years. THO has traditionally carried little debt, so I expect them to pay it down aggressively in coming quarters following the acquisition of Hymer.

If you have a long-term view, I'd say this is a decent point to start accumulating, but just know that if we do see another recession, it will head even lower. The stock dropped from ~$60 in 2007 to <$10 in 2009, so another 50% cut is certainly possible. But THO never cut the dividend in 2009, and never has as far as I'm aware of.