Toro, a major competitor to BGG has a press
release out today saying - revenues will up 10% this
quarter over projections. they say there is stronger
sales then expected. I think this bodes well for BGG,
and to tell you the truth I expected this. IF toro is
up 10% BGG will be up 15. They have much more market
share. Go Baby. Warm wet spring, big income tax refunds,
riding mower sales will surge.
The Genset business is only a small portion of
the overall business at BGG......Y2k has helped beef
up 1st and 2nd quarters..... but business will be
strong for the rest of the year.......weather providing
According to the financials things have been
pretty good... good enough that there is no inventory
built up and things must be running at capacity. What
happens to earnings when sales start to decrease below
capacity and inventory is built back up? Seems to me there
would be a couple of quarters that would find earnings
well short. How can earnings keep growing with
production at capacity? Anyone know if sales are still going
strong, or was it just the generators that were driving
things? Any other exciting info about bgg??
the Yahoo Research page fresh today shows boosted
earnings estimate for this fiscal year (ending 06/'00),
and a fairly dramatic projection for next.
President's letter I looked at last weekend made clear that
generator sales, in anticipation of y2k, drove earnings
last year. Ever since reading that I've had nightmares
of seeing January '00 ads on eBay like, "FS, new B&G
xx-hp gas gen. Never out of carton. Bids start at $xxx
(60% off cost)."
That Mr. Stratton sold 200,000
shares in the last year concerns me, too. I'd been
thinking he might be retiring, but that doesn't appear to
be the case.
If I get another shot ay
stepping aside at $62 I wonder if I'll shoot (I R a NWL
owner . . . really don't need another
Please post yor thoughts.
Good luck to all.
How is Toro a major competitor to Toro. Toro
produces products sold directly to retail distribution,
Briggs supplies OEM components (engines primarily) to
manufacturers. Briggs produces no proprietary products. Toro is
a customer, maybe not a large one, of
The generator industry is certainly booming. Generac
and Coleman Powermate have been the retail leaders
with volume distribution through retailers including
Kmart, Walmart, Home Depot, Sears, Sams, Costco etc.
They are both balls to the walls with production
restraints and engine availability (Briggs and Tecumseh)
providing a major problem.
New generator players
have joined the party over the past years, taking a
sizable chunk of Powermate's market share, less from
Generac. These players include DeVilbiss and Campbell
Hausfeld. A former Powermate exec has begun generator
assembly and several old line companies including Winco,
Winpower and Onan are pursuing the Generac and Powermate
Yes it will be a good year for
generators. Generators remain a fairly small component of
Briggs sales however. The entire generator industry in
normal times consumes less than a half million engines
annually. These engines do produce better margins for
Briggs and Stratton than lawn mower engines thereby
resulting in a favorable mix.
Still remember that
MTD and Murray will consume more than ten times the
total generator industry engine requirement.
It is good that people are reading
the posted messages with scrutiny BUT...
overall content (as I read it) of the first Toro message
is that Toro, a gasoline engine powered yard
equipment manufacturer, announced that they expect 10%
higher earnings than previously forecast.
reasonable to hope that since Toro is expecting greater
earnings that similar industries, MTD, Murray, etc, and
their suppliers, BGG + others, may also end up with
higher earnings than forecast.
The fact of
whether or not Toro is a direct competitor of BGG is of
little consequence. In fact if Toro does buy engines
from BGG, as you stated, then the Toro good news makes
me more optimistic that BGG may receive some
unforecast earnings increase.
Since you like to
scrutinize every detail then you should have previewed your
message to correct your first statement. "How is Toro a
major competitor to Toro." I expect that one of the
Toros should be a BGG and that a question mark should
have been used instead of a period. I did read past
the errors and took in the OVERALL CONTENT OF YOUR
I agree that Toro's good news will translate to
good news (or better) for BGG also.
feel they have to wait 3-4 weeks for BGG's quarterly
report (qtr ending 03-31) before they can realize that
BGG should be in the $57-$61 dollar range,
How do we convince other investors that they
should hold on to their BGG stock? It appears that many
investors are taking profits when the price increases only
$1 to $1.50. Don't they realize that if they can
hold on for 1 to 3 months that a sustainable price in
the upper 50's or 60's should be realized?
has great upside price potential and should not
follow the ups and downs of the S&P.
There are days when the volume goes well above
average and we move a point or two. Awhile back the
company announced a stock buy back. I wonder if those
days of pretty good moves, it is the company buying
I think your right she will go up
and down but the underlying track is up.