Recent portfolio addition Polaris Industries (PII) continues to act very well - while we are hostage to a 'student body left' trading environment (risk on, risk off!) when the market is relatively stable we can see which stocks act well on their own.  This morning the company received an upgrade as signs of discretionary spending due to large scale mortgage non payments by Americans economic recovery takes hold.  Remember 4-5 skipped mortgage payments for Joe 6 pack = new Polaris toy.

  • A KeyBanc Capital Markets said Monday that the leisure vehicle market is continuing to gradually improve, with the ATV market showing the most growth.  News that consumers are confident enough to spend money on discretionary items like ATVs, snowmobiles or RVs is a good sign for the economic recovery.
  • Analyst Scott W. Hamann said it appears manufacturers' inventories are much lower than in the past. Hamann noted that financing for these types of purchases remains stable so far this year, although it's still easier to get than a year ago.
  • Hamann said Polaris Industries Inc. will likely benefit the most from the improving ATV industry. He said the maker of snowmobiles, ATVs and Victory motorcycles is gaining significant market share in that sector.
  • He raised his rating on Polaris shares to Buy from Hold and set a $73 price target on the stock, indicating growth potential of 21 percent over the next year.
  • Hamann also thinks the company will continue to be aided by recent restructuring efforts (read: sending American jobs to Mexico) and a partnership with Bobcat Co. in which the two companies will develop vehicles and share technology.

[May 25, 2010: Bookkeeping - Beginning Starter Stake in Polaris Industries]

[May 25, 2010: Polaris Industries to Move American Jobs to Mexico - Great for Profits and Shareholders; Not so Much for American Workers]

Long Polaris Industries in fund; no personal position