I don't get why this went up so much over the last 60 days. Everyone must have known (inside) the place is crumbling. So why the run up?
I don't post much - but just saw the numbers and they don't make sense after such large stock gains over the last few months. This company seams to have little light at the end of the proverbial tunnel.
Zip, sometimes in an economic cycle you have to step back and look at the bigger picture. We're now in the "fear of missing out rally" where people are coming out of the woodwork trying to make up their losses that were compounded by sitting on the sidelines.
These people are mixing with the speculators who are proving that a company does not have to be fundamentally sound to drive the price up. If enough buy, the shorts will have to cover and the cycle continues. Some investors are trying to make all their losses back at once, some are riding earnings, some are just getting back in.
Look for any company that has has a positive net tangible, isn't burning cash too fast, insiders are buying, and you have the makings of a company that will get ran up, even if temporarily. If the recession breaks MarineMax's inventory does not all need to be written down as drastically as indicated. Maintenance and repairs to exisiting boats help stem the burn.
MarineMax still has a book value well above it's current share price.
Does that make it investable? Yes if you're short, quick, nimble and have a high risk tolerance. Yes, if you're long and think the market will come back before MarineMax will Bankrupt.
NO If you don't have any patience and the waves make you seasick, or no if you think the economy will continue to tank for another year or more.
I would add one ingrediant. Sea Ray is having one of their largest promotions ever. The model rebates in this program are more generous than ever has been. It is something most manufacturing companies cannot afford to do. I believe Sea Ray is gaining market share although the margins are very tight but, I believe it will provide MM a relief from some of the inventory overload without the sell one replace it with an order mentality from Sea Ray.
I would watch the Sea Ray website to see if another program will follow this one, if so, MM might show some slight improvement over past quarters.