Thesis:
Marcus Lemonis, CEO, is taking full advantage of the RV cycle to acquire market share via a well executed and accretive M&A strategy. Market share for new units has expanded from 15% to 20% in less than five years and combined new and used stands at 11%. Scale matters in this business creating several durable advantages: pricing power, private label product, geographic and price point diversification, and cost of capital. 1H2025 is lining up to be pivotal in terms of both revenue growth and positive earnings.
Pro's:
1. Strong CEO and management team that knows the business and is executing well
2. Market share growth via accretive M&A
3. Revenue and earnings will scale with recovery
4. Strong and growing institutional ownership
Con's:
1. Increase in debt (for M&A) puts stress on liquidity and debt ratios
2. Interest rate environment, stagnant housing market, and consumer recession risks continue until further notice
3. PMI risk of operational disruption or management distraction due to extensive merger integrations
Technical Setup:
A constructive base in the stock is forming with clearly defined areas of support and resistance using Anchored VWAP analysis (see profile link for more on Five Lines Analysis). A break above $25 with volume would increase the probability of a longer term price move.
Disclosure: I am long CWH and may add to or reduce at any time. Not Investment Advice. Do your own due diligence.
Marcus Lemonis, CEO, is taking full advantage of the RV cycle to acquire market share via a well executed and accretive M&A strategy. Market share for new units has expanded from 15% to 20% in less than five years and combined new and used stands at 11%. Scale matters in this business creating several durable advantages: pricing power, private label product, geographic and price point diversification, and cost of capital. 1H2025 is lining up to be pivotal in terms of both revenue growth and positive earnings.
Pro's:
1. Strong CEO and management team that knows the business and is executing well
2. Market share growth via accretive M&A
3. Revenue and earnings will scale with recovery
4. Strong and growing institutional ownership
Con's:
1. Increase in debt (for M&A) puts stress on liquidity and debt ratios
2. Interest rate environment, stagnant housing market, and consumer recession risks continue until further notice
3. PMI risk of operational disruption or management distraction due to extensive merger integrations
Technical Setup:
A constructive base in the stock is forming with clearly defined areas of support and resistance using Anchored VWAP analysis (see profile link for more on Five Lines Analysis). A break above $25 with volume would increase the probability of a longer term price move.
Disclosure: I am long CWH and may add to or reduce at any time. Not Investment Advice. Do your own due diligence.
I often have open positions related to my ideas or posts, and they are subject to adjustment at any time. Nothing stated should be considered investment advice. Know they self. Do the work.
See link below for more on Five Lines Analysis.
See link below for more on Five Lines Analysis.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
I often have open positions related to my ideas or posts, and they are subject to adjustment at any time. Nothing stated should be considered investment advice. Know they self. Do the work.
See link below for more on Five Lines Analysis.
See link below for more on Five Lines Analysis.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.