Brunswick shares soar to 52-week high
By IBI Magazine
Brunswick shares yesterday reached a new 52-week high of US$15.89 per share, a gain of almost 50 per cent in a week. The gain follows a presentation by Brunswick Chairman Dustan McCoy at a Raymond James conference who presented a positive long-term outlook for the boat builder. Rochdale Securities analyst Hayley Wolff also issued a note to investors saying that dealer inventories are historically low. "The boat market continues along the road to recovery, particularly on the wholesale side," Wolff wrote after a meeting with Brunswick management. "While retail sales remain in negative territory, retailers...must increase orders." But Wolff also noted that the boat market continues to be uneven, and that there is still distressed inventory in the field. But she noted that Brunswick's dealers are healthier than most US dealers, and that a joint venture between Brunswick and GE Capital provides dealers with access to inventory financing. The trading price was the highest the stock has been since September 2008.
(11 March 2010)
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