(08-08-2019, 02:47 PM)divmenow Wrote: Question: I don't remember who it was on here but I remember them buying THO back when it was $90 or so. Do you still own the name? I see its almost at a 3% yield now. Have you added since and what are you thoughts on this stock? A few years back this was a darling on wall street but has since plummeted.
I've owned Thor since 2013. I haven't added to it since, but continue to follow it. The whole RV sector has taken a big hit the last few years, between tariffs and overcapacity. However, I continue to think THO is a well run company, and it has made a couple acquisitions in recent years that should eventually pay off.
It operates in a highly cyclical industry, and EPS had dropped 36%. If this is the earnings bottom it could be a great time to buy. However, if we do enter a recession, EPS will drop much further, and there could be more downside ahead. In the last recession, THO saw negative EPS growth for three years in a row so its hard to say where we are in the cycle.
I certainly wouldn't put a large bet on the stock, but its worth a nibble if you don't mind volatility. I wouldn't be surprised with either 50% downside or 100% upside over the next 12 months, it's a roller-coaster stock.
