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pii, mpx, pool, rgr, jout, Leisure and Recreation Stocks 29.43% overvalued

^{Published on 2011-03-14 10:11:09 - WOPRAI}
 

March 14, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Leisure and Recreation sector and these stocks are the most undervalued as of today. POLARIS INDUSTRIES INC (NYSE:pii), MARINE PRODUCTS CORP (NYSE:mpx), POOL CORP (NASDAQ:pool), STURM RUGER & CO INC (NYSE:rgr), JOHNSON OUTDOORS INC -CL A (NASDAQ:jout) are all expected to go Down as they are overvalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     pii        POLARIS INDUSTRIES INC              80.23          61.99          29.43% overvalued           Leisure and Recreation 
     mpx        MARINE PRODUCTS CORP                7.09           5.84           21.40% overvalued           Leisure and Recreation 
     pool       POOL CORP                           24.5           22.95          6.73% overvalued            Leisure and Recreation 
     rgr        STURM RUGER & CO INC                19.49          16.06          21.36% overvalued           Leisure and Recreation 
     jout       JOHNSON OUTDOORS INC -CL A          15.43          12.81          20.43% overvalued           Leisure and Recreation 

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

POLARIS INDUSTRIES INC (NYSE:pii) - Polaris Industries Inc. designs, engineers, and manufactures off-road vehicles. It offers all terrain vehicles and side-by-side vehicles for recreational and utility use; snowmobiles; and on-road vehicles, including motorcycles and low emission vehicles. The company also provides replacement parts and accessories, including winches, bumper/brushguards, plows, racks, mowers, tires, pull-behinds, cabs, cargo box accessories, tracks, and oil for off-road vehicles; covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants for snowmobiles; and saddle bags, handlebars, backrests, exhaust, windshields, seats, oil, and various chrome accessories for motorcycles. In addition, it markets a line of recreational apparel, including helmets, jackets, bibs and pants, leathers, and hats. Polaris Industries sells its products through dealers and distributors under the RANGER, RANGER RZR, RANGER Crew, Victory Vision Street, and Victory Vision Tour trade marks principally in the United States and Canada. The company was founded in 1987 and is headquartered in Medina, Minnesota.

MARINE PRODUCTS CORP (NYSE:mpx) - Marine Products Corporation, through its subsidiaries, engages in the design, manufacture, and sale of recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets in the United States and internationally. The company offers Chaparral sterndrive and inboard-powered pleasure boats, including SSi Sportboats, SSX Sportdecks, Sunesta Wide Tech and Xtreme boats, Signature Cruisers, Premiere Sport Yachts, and Robalo outboard sport fishing boats. It sells its products to a network of 150 domestic and 38 international independent authorized dealers. The company was founded in 2000 and is based in Atlanta, Georgia. As of February 28, 2001, Marine Products Corporation operates independently of RPC, Inc.

POOL CORP (NASDAQ:pool) - Pool Corporation operates as a wholesale distributor of swimming pool supplies, equipment, and related leisure products in North America and Europe. The company offers approximately 100,000 national brand and Pool Corporation branded products. It sells maintenance products, such as chemicals, supplies, and pool accessories; repair and replacement parts for cleaners, filters, heaters, pumps, and lights; packaged pool kits, including walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and landscape products, such as professional lawn care equipment. The company also offers complementary products, including building materials used for pool installations and remodeling, such as concrete, plumbing and electrical components, and pool surface and decking materials; and other discretionary recreational and related outdoor lifestyle products. Pool Corporation serves swimming pool remodelers and builders, retail swimming pool stores, swimming pool repair and service businesses, landscape construction and maintenance contractors, and golf courses. The company was founded in 1993 and is based in Covington, Louisiana.

STURM RUGER & CO INC (NYSE:rgr) - Sturm, Ruger & Company, Inc. engages in the design, manufacture, and sale of firearms in the United States. The company offers its products under the Ruger name and trademark in four product categories, including single-shot, autoloading, bolt-action, and sporting rifles; over and under shotguns; rimfire autoloading and centerfire autoloading pistols; and single action and double action revolvers. It also manufactures and sells accessories and replacement parts for its firearms. In addition, the company produces and sells investment castings made from steel alloys. Sturm, Ruger & Company, Inc. sells its firearms through a network of selected licensed independent wholesale distributors; and markets investment castings through manufacturers representatives to commercial, sporting goods, and military sectors. The company was founded in 1948 and is based in Southport, Connecticut.

JOHNSON OUTDOORS INC -CL A (NASDAQ:jout) - Johnson Outdoors, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of outdoor recreation products worldwide. Its Marine Electronics segment provides battery-powered fishing motors for trolling or primary propulsion; sonar and GPS equipment for fishfinding and navigation; downriggers for controlled-depth fishing; chartplotters for navigation; and marine autopilot systems for large boats. It offers its products through outdoor specialty retailers, retail store chains, marine distributors, international distributors, and original equipment manufacturers. The companys Outdoor Equipment segment provides tents, sleeping bags, and other recreational camping products; field compasses and digital instruments; and performance measurement instruments. It offers its products through independent sales representatives, primarily to sporting goods stores, catalog and mail order houses, and camping and backpacking specialty stores, as well as through Internet retailers and general rental stores. Johnson Outdoors Watercraft segment sells canoes and kayaks, paddles, and personal flotation devices through specialty stores, marine dealers, sporting goods stores, and catalog and mail order houses. The companys Diving segment manufactures and markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories for technical and recreational divers. It markets its equipment in diving magazines, via Web sites, and through dive specialty stores. The company was founded in 1985 and is headquartered in Racine, Wisconsin.

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