11-19-2018, 09:38 AM
(11-16-2018, 06:30 PM)divmenow Wrote: Hey Eric whats your feeling on THO now?
Being hit by tariffs, rising rates, and fears of an economic slowdown.
It's a cyclical company, so since we are late in the economic cycle, its being sold off ahead of the anticipated drop in earnings, hence the <8 PE.
That said, I do continue to believe the company is well run, and they've been making moves to acquire competition in recent years. THO has traditionally carried little debt, so I expect them to pay it down aggressively in coming quarters following the acquisition of Hymer.
If you have a long-term view, I'd say this is a decent point to start accumulating, but just know that if we do see another recession, it will head even lower. The stock dropped from ~$60 in 2007 to <$10 in 2009, so another 50% cut is certainly possible. But THO never cut the dividend in 2009, and never has as far as I'm aware of.