“It’s a difficult market,” McCoy said, “and we have the usual suspects: less disposable income, uncertainty about the economy, rising fuel prices, but now, unfortunately, we have two additional things. We’ve actually had quite a bit of bad weather, which really impacts boating, and more importantly, the housing market is having an impact in states like Florida.”
The trend is nationwide, McCoy said, but it seems to be hitting Florida the hardest.
McCoy reinforced Cramer’s sentiment that Brunswick is yet another company that has benefited from strong international growth. And it’s also leading the way for tech in the boating industry. Brunswick invented a new engine platform that allows for lateral movement, which makes moving and parking a boat much easier. It’s even adding GPS capability to its boats as well.
Cramer wanted to know what’s changed since the ‘80s, when a market downturn would have cost Brunswick millions of dollars. These days it’s paying down debt and stocking up cash, he says. McCoy credits international growth, the success of BC’s parts and accessories business, a focus on cost, and a healthy business outside the marine sector.
Cramer expects BC to follow in the footsteps of Amazon.com and Whirlpool, meaning after a decent pop today, we could see another tomorrow. The reason: Big funds can’t buy into their full position in one day, so they’re coming back for seconds on day two.
Questions? Comments? madmoney@cnbc.com