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Marine Products Corp. Message Board

  • supermarko2001 supermarko2001 Aug 25, 2005 12:38 PM Flag

    MPX is heading down

    The problem with MF is that they pick good companies but they don't take into account economic shifts.

    MPX has deeper problems than what they say and honoestly it is outside of thier control. People are simply going to start buying less boats as the economy slows down and contracts. This does not necessarily mean gas prices (on the CC management made a good comment about gas prices), but look how every auto stock has fallen, and you will see boat companies fall too. This fall is so tempting because it makes the multiple look so cheap, but really its more like looking at U.S. Steel. This company will have an earnings dropoff. Then when people start really selling and the stock looks expensive its time to get back in.

    On the other side, this stock may really be cheap. Because they say in their annual report that boat sales have been growing very slowly and they make huge gains by eating up market share. Also, this company has VERY shareholder friendly management. They will definitely come in and buy bakc massive amounts of shares if it keeps falling and the massive insider ownership is something to watch. This is because the float is really tight, so if they produce 2 good quarters or get a good recomendation (like MF HG) the stock will soar.

    I don't own any stock and think you're a lot safer waiting on the sidelines until the company produces a good quarter and solves its inventory/cash flow problems. Either that or I will wait until the economy REALLY starts to crash and bad news really comes out. If that happens I will watch eagerly for a megabottom (which in that case, won't happen for 1-2 years)

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