Short BC Brunswick"Big Boy Toys" Yachts, bass boats

Posted by MontanaTrader on January 22, 2010 (01:05PM)

Brunswick (BC) is a mfg. of what I call big boy toys: Yachts, Bayliner boats, Lund, Triton bass boats, pool tables, bowling just to name a few items.  One billion in assets, avg. 1.1 million volume/day.  Current price 01/22/10 AM $12.55. 
Changing direction and looking at another big boy toy mfg, HOG (hardley motorcycles) there was a 10% drop in share price this day due to poor earnings report.  I THINK the same may happen to BC.  With this economy/unemployment I would expect a drop in purchases of big boy toys.
BC reports earnings Jan 28 prior to opening.  In the first week of Jan 2010, BC experienced a 52 week (52 week stock climax) high, $13.90 and has steadily been dropping since.  Volume is down.  MACD had red line cross over yesterday. 

In simpler terms I think this may be a good stock to short.

Disclosure: I am currently bidding on PUTS, Buy To Open (BTO)  Feb. $12.50  PUTS at $0.65 (IV50).  May have to raise the PUT offer to complete the purchase.
I noticed the $10.00 PUTS are at $0.15 (bid $0.05), low delta and gamma though so I opted for the higher priced $12.50 PUTS with higher delta, gamma.

I am also looking for a short position on HOV, a high end home/condo  builder.

Do your own research and don't take a position based solely on my statements.  I have been wrong before.  My account at TK is a HIGH risk account and not suitable for most investors.

Good Trading

Montana  







Posted by MontanaTrader on January 22, 2010 (01:18PM)

Adding to my post, forgot to mention, insides are selling a few shares 6K.  However institutional shares SOLD 23 million shares i.e 38.1%.

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