Seeking Alpha

Overly pessimistic investors may be missing an opportunity for significant appreciation in the nation's largest boat dealer, MarineMax (HZO), as personal spending climbs. The company's recessionary inspired cost cuts offer investors margin upside as spending shifts from used to new and smaller to larger boats. That margin opportunity could mean shares are undervalued by as much as 100%.

Here's why.

Investors appear to be under-appreciating MarineMax's opportunity to exploit inefficiencies tied to highly fragmented competitors. Those inefficiencies include:

  1. Inventory -- MarineMax's strong balance sheet allows it to have a deeper and broader selection of high demand boats than competitors.
  2. Pricing -- MarineMax's balance sheet and buying power gives it an advantage in negotiating with vendors and consumers.
  3. Services

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