In this segment from the Motley Fool Money radio show, host Chris Hill asks Million Dollar Portfolio's Jason Moser and Matt Argersinger and Supernova and Rule Breakers' David Kretzmann to tell us about the companies they have their eyes on this week, and why. Their list includes RV retailer Camping World Holdings (CWH -4.03%), home-furnishings e-commerce player Wayfair (W 2.14%), and event promoter and ticket seller Live Nation Entertainment (LYV 1.42%).
A full transcript follows the video.
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This video was recorded on July 14, 2017.
Chris Hill: Let's get to the stocks on our radar this week. Our man, Steve Broido, will hit you with a question from the other side of the glass. David Kretzmann, you're up first. What are you looking at?
David Kretzmann: I'm looking at Camping World Holdings, ticker CWH. RV sales in the U.S. are actually hitting the highest levels they've ever been at in about 40 years. As more baby boomers are retiring and younger people are trying to travel more while they're still young and working, RV sales are continuing to increase each year here in the U.S. Camping World Holdings is essentially the largest national retailer of RVs. They have 130 stores in 36 states, and they also own the Good Sam Club, which you can think of as the RV industry's membership club, kind of the AAA for RVs, and they have 1.7 million members in the Good Sam Club, which provides some high-margin recurring revenue for the company and keeps that relationship with their customers over time. There's a lot of mom-and-pop operators in this space, so what Camping World can do is acquire those mom-and-pop brands, rebrand them, and build this national RV brand under Camping World. So a lot of things to like here. It's a small cap, but I'm keeping a close eye on it.
Hill: Steve, question about Camping World Holdings?
Steve Broido: I'm legitimately fascinated with RVs. I have looked at them online. It's an interesting, interesting, interesting place to look, by the way. Would you go with a fifth wheel or a motor home? What are you going with?
Kretzmann: Man, I am not an expert there, Steve. It depends on your respective circumstances.
Broido: I'm going fifth wheel.
Kretzmann: Fifth wheel, that sounds good.
Hill: Jason Moser, what are you looking at?
Jason Moser: Yeah, looking at Wayfair earnings coming out on Aug. 8. Ticker is W. I've been covering this business since it IPOed in 2014. It continues to perform, and all of the metrics seem to be going in the right direction. They're growing sales; they're growing users; margins are actually pretty steady. The big metric there is the percentage of orders from repeat customers, and that continues to appreciate over time. So then it's going to be a question of whether they can pull back on that acquisition at some point and really unleash some profitability in the business. There was a report of Amazon jumping into this line of work a month or so ago. It doesn't seem like that may be the Wayfair killer others thought it might be. But very interested in their quarter here.
Hill: Steve, question about Wayfair?
Broido: Is there a membership model in place here? Maybe like Restoration Hardware has done, where you become a member and you get a discount? That kind of thing?
Moser: There is not yet. I do believe they have something in the mix there to try to develop a little bit more loyalty.
Hill: Matty Argersinger, what are you looking at?
Matt Argersinger: One stock recently on my watch list is Live Nation Entertainment. The ticker is LYV. Yes, music streaming has been around for years. We talk about things like virtual reality. But in my mind, you just can't replace the experience of going to a live concert or sports event. Live Nation is the largest events, promotion ticketing company in the world. Last year, they promoted 26,300 events; 71 million fans came and attended. They also own Ticketmaster, by the way, which is the largest ticketing company in the world -- 480 million tickets last year. I just think there's a lot going for this company, and I like the idea of a live events business in this Amazon-disrupted world we're living in right now.
Hill: Steve, question about Live Nation Entertainment?
Broido: It's a question for Matt. What's the best concert you've ever attended?
Argersinger: Oh my gosh. I'm going to go old school. I went to Bruce Springsteen about 15 years ago, right out of college. It was one of the best times I've ever had.
Hill: What about you, Steve?
Broido: I'm going with The Cure. I saw The Cure in 1989, Disintegration Tour, it was really solid.
Hill: Three stocks. You got one you want to add to your watch list?
Broido: I'm going camping, man.
Kretzmann: All right!
Broido: I'm buying an RV. Let's do it.
Kretzmann: Sounds good, Steve.
Hill: Kretzmann going to do the cooking for you on that trip?
Broido: I hope so.
Kretzmann: We'll go to Chipotle.