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Brunswick: Consumer Discretionary With Long-Term Value

May 29, 2023 6:38 AM ETBrunswick Corporation (BC)4 Comments


  • In this article, I'm going to be introducing you to a new holding I added in early April, and have been reviewing, forecasting, and analyzing since.
  • I am now ready to start expanding my position - and I believe Brunswick Corp makes for a long-term appealing investment, akin to a cheap Thor Industries.
  • I made triple digits by buying and selling Thor - I expect the same out of Brunswick.
  • Here is why, and why I consider Brunswick an undervalued "BUY" even with the risks that exist.
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Author's Notice: This article was published on iREIT on Alpha in late April 2023.

Railroad bridge over the Androscoggin River in Brunswick, Maine


Dear subscribers,

So, over the past few years, I've become more and more active in certain sports areas. I've started skiing, I've begun golfing, and in my travels to

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This article was written by

Wolf Report profile picture

Wolf Report is a senior analyst and private portfolio manager with over 10 years generating value ideas in European and North American markets.

He is a contributing author for the investing group iREIT on Alpha where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BC, LVMUY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks i write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend witholding taxes and ways to mitigate these.

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Comments (4)

Value trap facing several key issues you did not point out.

1. The propulsion business is under secular pressure by the transition to electric. Electrification eliminates Mercury economy of scale and competitive advantages as Mercury will have to sell third party components which is not sustainable long term. The President of Mercury saw the writing on the wall and bailed out earlier this year.

2. The P&A business is going to have their lunch eaten by Garmin (and others). Garmin is already kicking Navico’s tail (Garmin marine revenues up 14% in q1 Navico down 11%) and it’s only going to get worse. Brunswick views Navico as a way to “lock” boat companies to buy into its platform. Boat companies don’t want to locked into anything and are heading for the exits. Navico has overplayed its hand and is getting burned. This is a huge value destroying part of the business saddled with debt.

3. The boat business is focused on higher and higher price points. That only goes so far. There are literally dozens of other boat companies better serving the low, medium AND high end and as the P&A and propulsion businesses lose advantage the boat business will likewise suffer as the company can’t absorb its bloated cost structure filled with DEI and woke bloat.

It will be interesting to see how their consumer reacts when they realize that this company is behaving in the same woke manner as bud light and Target. It just hasn’t had the negative press so far.

Good luck and run away from this value trap!
Boston Value Guy profile picture
@Discovertree Electrification works for 2-5hp engines. Mercury makes large engines - and small....and electric. I haven't seen much wokeness - maybe you could give some examples.
@Boston Value Guy Take a look at the DEI and sustainability annual reports and you can see dozens of examples. Those two large reports represent millions of dollars invested in woke ideology and are just a tip of the iceberg.
Boston Value Guy profile picture
@Discovertree Unfortunately, I think you are going to have a hard time investing in US companies if you exclude companies that have ESG initiatives and reports. Sadly, it's not an option.
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