Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, recreational-products maker Brunswick (NYSE: BC ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Brunswick's business and see what CAPS investors are saying about the stock right now.
Brunswick facts
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Headquarters (Founded)
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Lake Forest, Ill. (1844)
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Market Cap
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$1.4 billion
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Industry
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Leisure products
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Trailing-12-Month Revenue
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$2.78 billion
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Management
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Chairman/CEO Dustan McCoy
CFO Peter Hamilton
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Business Segments
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Marine, Fitness, Billiards, Bowling
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Trailing-12-Month Return on Capital
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(19.7%)
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1-Year Return
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517%
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Cash/Debt
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$526.6 million / $850.9 million
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Competitors
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Marine Products (NYSE: MPX )
Nautilus (NYSE: NLS )
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Strategic Partners
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Cummins (NYSE: CMI )
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Highly Rated Leisure Stock Alternatives
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Steinway Musical Instruments (NYSE: LVB )
Hasbro (NYSE: HAS )
Mattel (NYSE: MAT )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 50% of the 242 members who have rated Brunswick believe the stock will underperform the S&P 500 going forward. These bears include All-Stars UltraLong and mrindependent, both of whom are ranked in the top 1% of our community.
Just this past Wednesday, UltraLong helped bowl over the bull case:
Why pay over 1 billion dollars for a company scheduled to lose money into 2012 with over 800M in debts and is trading at 6 times book with a ridiculously overbought condition? Why? What makes you think people are buying boats in this economy? I've been to their bowling alleys ... they're dead. Why?
In a pitch from yesterday, mrindependent echoed that sentiment:
All of Brunswick's products are discretionary including boats, bowling product, billiards tables and air hockey tables. As a result, historical earnings results are extremely choppy. Although this company is currently losing money and is expected to lose money in 2010 and 2011, the market has celebrated the supposed end of the recession by bidding this stock price up 500% in the past year. I think the next big move will be down.
What do you think about Brunswick, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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