BOLTING LANDING, N.Y. (Stockpickr) -- With Independence Day memories fresh and yet another heat wave sticking over the East Coast, I thought that it would be apropos to take a look at some summertime stocks. And since much of my summer revolves around spending time on my 25-foot Harris FloteBote Royal Heritage Pontoon on Lake George in upstate New York, I'm going to focus on recreational vehicles. Whether you plan on spending the summer on water or on land, there are several interesting investment opportunities.
The company that makes my boat, Harris Kayot, has been owned by Brunswick (BC) since 2005. Powering the boat is a 115-horsepower Honda 4-stroke engine made by Honda Motor (HMC), which besides cars and trucks, manufactures marine engines and personal water craft (PWCs).Other popular PWCs and boats are manufactured by Sea Doo, a Bombardier (Pink Sheets: BDRBF) company, and the Wave Runner by Yamaha Motor (Pink Sheets: YAMHF). Also seen on our national waterways are boats and engines manufactured by Mercury Marine, a division of Brunswick, perhaps one of the purest plays in the marine arena.
If you escape the summer heat in a pool rather than a lake or the ocean, it's likely that some of the products produced by Pool (POOL) are in or around that pool. Arch Chemicals (ARJ) manufacturers one of the most recognizable brands of pool chemicals, HTH. I would note that the dividends for both Pool, at 2.44%, and Arch Chemicals, at 2.59%, have dividends that exceed the dividend yield of the S&P 500, which is approximately 2.1%.
For those who prefer to take their summer fun on the road in an RV, this is a very tough segment of the recreational industry, due to the spike in gasoline prices in 2008, followed by the credit crisis and recession. Fleetwood Enterprises, for example, filed for bankruptcy in 2009. When it comes to RVs, the name that comes to most peoples' minds is Winnebago (WGO). While the company has not earned money in several years, analysts are expecting a profit of 28 cents a share in 2010 and 58 cents a share in 2011. The company has $76 million in cash with no long-term debt. Should the RV industry rebound, Winnebago will lead the way.
More on Stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV