​​​🕘​ Meeting notes: Scott Stember, CL King

​​Apr 5, 2018

​​Attendees

​​Mitch R. Meisler, Robert Mitchell, Derek Johnston, John Schipper

​​Agenda

​​Peter Schultz (Trader): Good Morning John, have another excellent analyst in your office today. Scott Stember is meeting with Robert Mitchell at 1pm.  Scott has been following the RV Sector for at least 15 years, names like THO, WGO, PATK, he also covers FOXF which I know you care about.  I'd be happy to send along his full coverage list if you'd like.

​​Discussion

  • ​​FOXF
  • ​​DORM
  • ​​PII
  • ​​SNA

​​FOXF:

  • ​​Ford Ranger in the US will be big
  • ​​Everyone got rid of their midsize trucks during the recession
  • ​​Tacoma:
  • ​​Selling super well even though its a ugly heap
  • ​​Next Round of Margin Expansion: 
  • ​​Doing what they did on the bike side
  • ​​Pricing:
  • ​​~4K/Set of 4
  • ​​But if you have that on 3-4 items, it adds up
  • ​​Toyota Tundra
  • ​​For Ranger
​​

​​Risks:

  • ​​Taiwan 
  • ​​Trade Wars
​​

​​DORM:

  • ​​Been getting a lot of calls from buyers, especially when it has been getting hit w/ Tariffs
  • ​​AAP:
  • ​​Major part 
  • ​​Ever since they made the carquest acquisition its been a disaster
​​

​​PII:

  • ​​$27mm announcement - they had telegraphed this so not a big surprise
  • ​​They are being ultra careful, showing that they are on top of their sh!t/have things contained operationally
  • ​​The question is how much goodwill did they loose in their quest for growth at all costs?
​​
​​Why Do People Keep Buying This Thing?
  • ​​Used to compare them to AAPL in terms of consistent / high quality operators
  • ​​Think people are looking at this and saying:
  • ​​With the recalls in the rear view mirror 
  • ​​Process of streamlining 
  • ​​When retail sales do come back - the leverage will hit the bottom line exponentially
  • ​​Also going through a product mix shift:
  • ​​Bikes = a much lower margin profile
​​
​​Products:
  • ​​Have some good stuff in the pipeline (Ask LFC for video)