I have owned a Generac 15K for 4 years. Tests itself every week and rescues us everytime the power goes out..without hesitation. That said, the P/E is still too high. These generators are a luxury item for most Americans, making this stock quite vulnerable during any economic downturn.
Looking forward to owning this stock at the right price. I believe this company has a great future.
The large systems could be considered a "luxury" but with the extreme environmental issues the past 2 years, existing homeowners view generators as a necessity. Some of the sales decline is related to new housing starts but a 25 P/E or $60/share is the sweet spot for this. Too much comparison to Storm Sandy. GNRC will surprise next qtr and analysts will upgrade...
"existing homeowners view generators as a necessity." The people in my neighborhood can well afford the same set-up that I enjoy. Yet, even after Sandy, none of them have put in a system. They know I can pump water if the power goes out. What am I going to do, say no? Of course not.