Mad Money host Jim Cramer on his CNBC TV show on Wednesday gave a big plug for Polaris, and in doing so also gave a big endorsement to the outdoor sports like snowmobiling, ATVing, boating, motorcycling, etc., that drive Polaris sales.
In a three-minute segment that can be seen below, Cramer gushes about Polaris’ position right now as the country and its economy tries to emerge from the coronavirus lockdown, quoting some industry figures and an interview the finance-oriented channel did with Polaris CEO Scott Wine as proof.
“Even though the economy is in rough shape, Polaris is thriving here because they are taking market share in a world where people are afraid to fly or take cruises or gather in large groups,” the hyperactive Cramer said. “Camping, riding around on an ATV or a snowmobile while wearing a helmet – this is all stuff you can do for fun while minimizing your potential for COVID exposure. It’s the right sports for the moment.”
Some of Cramer’s comments about a boom in powersports and boating are reflected in what the editorial teams on our sister trade publications Powersports Business and Boating Industry are hearing from dealers across the country — sales of powersports equipment and boats are through the roof right now, as people:
- Have time on their hands due not just to layoffs but also cancelled youth sports, limited ability to go to restaurants, cancelled vacations, etc. ;
- Have, in some case, money at hand due to cancelled spring break trips, cruises, etc.;
- Have family time on their mind.
In fact, one of the biggest problems we’re hearing from dealerships is worry about replenishing stock — as manufacturers deal with supply chain issues, dealership floors are starting to look rather empty, with no clear sign of when the next shipment of, for instance, ATVs and UTVs will be rolling in.
Related specifically to Polaris, the time to bargain shop its stock may have passed — it dropped to $39 a share on April 3 but now is hovering just below $100 per share three months later. Even with that recent rise, Cramer still calls it a “once-in-a-generation opportunity” to get in on companies like Polaris who are selling equipment for outdoor recreation.
“The great outdoors is taking marketshare from every other form of recreation that involves crowded, indoor spaces,” Cramer said.
Here’s his video below, and a link to the full CNBC story:
