Camping World stocks nosedive

[arcaguy]

First off Camping World is not the entity that holds your Extended Service Plan an insurance company does. Last time I checked this company was well rated by AM Best. I wouldn't worry about your Extended Service Plan. How they perform I don't know but if Camping World goes broke you won't be affected.


However, Camping World is in deep doo doo financially. I think last time I looked at their financial statements a few months ago they had something like $142 in debt for every dollar of equity for a worth to debt ratio of something line 0.7%. If you really want to know go the the SEC web site and look up their most recent 10Q. Anyway time will tell what's going to happen but it won't be the end of your extended service plan and it won't be the end of the world.


Here's a link to the 10Q on the Camping World site: http://d18rn0p25nwr6d.cloudfront.net...MENTSOFOPERATI

[Bamaman]

I compare Camping World to one of those big nationwide automobile dealership chains that manages through intimidation and makes more money on the back end of the deal than on the front end.

First thing they did when they bought C/W is go into a nationwide spree purchasing many, many great and established RV dealerships. But to convince the owners to sell, Camping World (using borrowed hedge fund money) had to pay the owners substantially more than the businesses were worth.

But while they caught the industry on the rebound after a more than disastrous 2007-2010, total sales recently are down about 24% throughout the industry. Full employment in the Elkhart area has been replaced by mass layoffs in some RV manufacturing companies.

If the retail RV market remains stable for awhile and the rest of the economy does okay, RV sales should increase because retiring Baby Boomers are looking for something wholesome to do on weekends.

But don't look for Camping World to be part of increasing sales because at their Debt/Equity Ratios, the future doesn't look good for them. I just feel sorry for the banks/finance companies that are stuck with all those floorplanned inventories. 2020 may be a good year to buy a RV--when C/W goes down the tubes.

[NCC-1701A]

Originally Posted by arcaguy

I think last time I looked at their financial statements a few months ago they had something like $142 in debt for every dollar of equity

While CW is an extreme case, the Debt to Equity ratio of many, many public corporations is out of whack due to years and years of nearly "free" money due to low interest rates. Many companies, that could not grow organically, borrowed "cheap" money to do massive stock buy backs to increase EPS to make themselves look better and benefit their officers, or they chose to grow through highly leveraged acquisitions. So CW isn't the only one doing these things.



This is one of the main worries I have across the stock market today as when the next recession hits, the payments on that debt still have to be made with less revenue to do it. Or if the payments can't be made it will be like a corporate equivalent of the housing and banking collapse that triggered the great recession.

[jacwjames]

Originally Posted by roscoesdad

Have you not listen to our leaders? Tariff's bring in BILLIONS each month.

I am in AWE everyday of some of the ridiculous comments.

The tariffs will also hurt the RV industry as a lot components come from China. I read that the cost of build a trailer has gone up due to the higher cost of axle components, most of which came from China. There as been a push from manufacturers to move plants to South Korea but this takes and ultimately will cost more money.

Now reading that this squabble may not be settled until after election when calmer heads may take control.

But this is getting off point as to the initial post.

[MotorPro]

Originally Posted by jacwjames

I am in AWE everyday of some of the ridiculous comments.

The tariffs will also hurt the RV industry as a lot components come from China. I read that the cost of build a trailer has gone up due to the higher cost of axle components, most of which came from China. There as been a push from manufacturers to move plants to South Korea but this takes and ultimately will cost more money.

Now reading that this squabble may not be settled until after election when calmer heads may take control.

But this is getting off point as to the initial post.

Do you know what sarcasm is?

[Jamie65]

Remember this statement, I avoid Camping World as should all Veterans.

[Mod Edit]

[jacwjames]

Originally Posted by MotorPro

Do you know what sarcasm is?

Yes, I got it, my response was in frustration of current economic policy and international relations.


FWIW the news today provided this today international recession fears.
https://www.reuters.com/article/us-u...-idUSKCN1V4172
The one indicator that drives this home is the inverter yield curve. This is a classic indicator of recession.



We are in for a wild ride.

[marjoa]

Originally Posted by jacwjames

Yes, I got it, my response was in frustration of current economic policy and international relations.

FWIW the news today provided this today international recession fears.
https://www.reuters.com/article/us-u...-idUSKCN1V4172
The one indicator that drives this home is the inverter yield curve. This is a classic indicator of recession.

We are in for a wild ride.

For the most part, Wall Street is a decision making body of folks who are driven by emotion and fear. History is full of tumbling stock prices but when you look at say a particular companies numbers...they're good. IE...Wall Street loves Crispy Cream Donuts today....price goes up, hate them tomorrow....price goes down. Much of Wall Street is driven this way. Every quarter for the past...Oh I don't know forever....they predict Apple sales are falling short and big damage is in the near future. Then Apple releases their quarterly numbers and Oh guess what, they beat estimates and price goes up AGAIN. This can be repeated 100's if not 1000's of times.

All this kind of talk, emotion and fear driven buying and selling along with propaganda news stories all over the place and then "talking about the "R" word over and over and over again actually becomes a self fulfilling prophecy. People need to relax. Companies like CW who has made bad decisions over time, the chickens will come home to roost but that doesn't mean the sky is falling soon and we're on the cusp of....nop I'm going to say it.

[boiledowl]

The Camping World in Ashland Va have had some pretty negative press. People saying warranties not honored, shoddy repair work, dishonest staff, taking weeks and weeks for repairs etc....

[PJStough]

Originally Posted by Jamie65

Remember this statement, I avoid Camping World as should all Veterans.

[Mod Edit]

Why should all veterans avoid Camping World?

[jacwjames]

Originally Posted by marjoa

All this kind of talk, emotion and fear driven buying and selling along with propaganda news stories all over the place and then "talking about the "R" word over and over and over again actually becomes a self fulfilling prophecy. People need to relax. Companies like CW who has made bad decisions over time, the chickens will come home to roost but that doesn't mean the sky is falling soon and we're on the cusp of....nop I'm going to say it.

To some extent you are 100% right other then there is a growing list of leading indicators predicting a recession. Recessions are part of the normal business cycle, on average they happen every 7 years so we are do. What goes on behind the scenes on Wall Street can also contribute, insider information happens everyday, Large stock swings driven by all this information doesn't help. Who's buying, selling, positive or negative recommendations on information the average person does not have access to and compounded all the global issues all contribute to this so it's not surprising we may be headed to recession .



Just sayin