Stock Market vs. Boat Builders

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xyzabc

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Has anyone been watching the stock prices of companies that manufacture recreational boats?В I've been keepimg tabs on Brunswick (BC), the maker of Bayliner and Sea Ray among others, for quite a while starting when it was in the 30s. It closed below 6-1/2 today. Also -- have a friend in xmercial real estate including Delta marinas and I gather that a cemetery is livelier than this business. What do you observe? --- Warren
 
I haven't, but I have read where lots of finacial instititutions have ended their yacht lending...

I think it's going to be bad, as if it weren't bad enough already. I think many (privately held or publicly heald companies) are going to fold, or merge with others. It's so bad out there right now...
 
Yeah, Meridian closed all their plants, two in the Seattle area, and they now will have one production plant in Palmcoast Florida, about 40 miles north of Daytona Beach.
Also, there is some talk about Brunswick merging Bayliner and Maxuum- retuning the latter to the former in the way it was formed in the 90s.
 
Which brings up a question I have had for years and no one has been able to come up with a good answer. If you buy a 60' yacht, loaded to the gills it may cost you a 600,000 to a million dollars. It may have 1500 sq ft of living space, if that. For the same money you can buy a ten thousand sq foot home overlooking a lake with ten or 20 acres included. Why are boats so high? Homes are built one at a time, with much more electronics and plumbing than almost any boat has. The only somewhat credible answer I ever got was that the person I was talking to said he has known many boat builders and almost none of them make any money and come and go all the time. Why are upper end boats so expensive?

DBH
 
DBH,
You can say the same thing for: why a practically hand made new Rolls Royce goes for less than a new 34 footer?
Also with a Rolls you can expect five years of trouble-free performance, while with a new boat.....
 
The worst is yet to come. BBrunswick closed today at 3.86 and the end is not in sight. BC is tanking faster than some others, -- Warren PS-- DBH, if I were in that market I would grab 10.000 sq ft on 10-20 lakefront for600k - 1m.
 
We have had a couple very large homes overlooking Millerton Lake sell in that range, at Van Ness Lakes here in north Fresno you can buy a 6-7 thousand sq ft home on the lake for those prices but with no acreage and all over the southern states I hear you can really get some marvelous lakeside homes. But having said that, the point was that I don't understand why some of the nicer yachts are so darn expensive when you compare them to homes with five times the space, plumbing, heating, wiring, roofing and you get some dirt to boot.

DBH
 
quote:
Originally posted by deltabighat

I don't understand why some of the nicer yachts are so darn expensive when you compare them to homes with five times the space, plumbing, heating, wiring, roofing and you get some dirt to boot.

DBH

Click to expand...


Have you considered shaking your house and what would it look like afterwards? How many dry wall cracks do you get with just heat expansion? House construction is pretty primitive. A better comparison would be the price per square foot of a Mercedes or better yet, a low volume producer.
 
Chicken wire isn't used as a construction material anywhere on a boat.

Set a large boat and a house, on the beach, with the surf banging against it and swirling around. One will still be just fine a week later, the other one won't be there. If you made a house out of hand-laid fiberglass too, maybe it'd hold up.
 
Good points all, and I surely would not want to navagate my house down the sloughs but......I still say there is sure a question in my mind about the cost of expensive boats.

DBH
 
If you're not sure if this situation is NOT serious, you might want to read these. One claims the collaspe of many hedge funds may cause the stock market to CLOSE, for a week or two.

The other cites where GE is seeking Federal funds. GE? Wow...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aTHELG0dV_e8&refer=news

http://www.businessweek.com/ap/financialnews/D94143V81.htm

We are experiencing History here folks - like a single 100 year event. The next two weeks will basically determine how things look (from the markets perspective). Can't wait...hahahaha
 
If you're not sure if this situation is NOT serious, you might want to read these. One claims the collaspe of many hedge funds may cause the stock market to CLOSE, for a week or two.

The other cites where GE is seeking Federal funds. GE? Wow...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aTHELG0dV_e8&refer=news

http://www.businessweek.com/ap/financialnews/D94143V81.htm

We are experiencing History here folks - like a single 100 year event. The next two weeks will basically determine how things look (from the markets perspective). Can't wait...hahahaha
 
If you're not sure this situation is NOT serious, you might want to read these. One claims the collaspe of many hedge funds may cause the stock market to CLOSE, for a week or two.

The other cites where GE is seeking Federal funds. GE? Wow...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aTHELG0dV_e8&refer=news

http://www.businessweek.com/ap/financialnews/D94143V81.htm

We are experiencing History here folks - like a single 100 year event. The next two weeks will basically determine how things look (from the markets perspective). Can't wait...hahahaha
 
Wow, that's a 1st! LOL...

My PC seemed a bit slow, I did hit the "push" button 3-times. But sorry, can't seem to delete them...

It is an important point, LOL...
 
Mitch, I thought you were just so proud of your post. I did the same thing the other day.
 
Mitch, I read both articles you posted. I don't think it is bad that GE joined the government's commerical paper program it provides stability. As for stocks this could be the buying opportunity of a lifetime we'll know after they head back up. I would think the boat manufacture's though will continue to have a rough slog ahead; there are lots of boats on Craigslist, plenty of offshore boat building competition and nothing seems to be moving. DD
 
Yes, Mitch, this is serious. BC closed at 3.29, down about 50% since I started this string a couple weeks ago. Thankful I don't own it, but will Bayliner, a very old name in boating, be around? Also, imagine the impact if Bush
's privatized Social Security had become law. Lots of hurt now but imagine that one!
 
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