Diamonds and Dogs
Road trip anyone? Winnebago (WGO) is surging 3% closing in on 52 week high following earnings. The leader in the RV industry saw sales actually declined 4% in the quarter, but earnings did improve. Thanks to cheap oil, customers are upgrading to a larger class of RVs helping profit margins. The backlog of orders is also improving, rising 23% to 2,792 units while the towable backlog climbed 29% to 168 units. Looks like we'll see more Clark Griswolds on the roads come this summer.
United Continental (UAL) trades down 3% along with all the airlines. For the third straight day following the Brussel's terrorist attack, the airlines came under selling pressure once again. United Continental is also coming under attacked from two hedge fund investors, who have launched a boardroom battle with United urging the airline to immediately appoint one of its two new board members as chairman. Altimeter Capital and PAR Capital, which together own about 7.1 percent of United's outstanding common stock, wanted the airline to add six new directors including Gordon Bethune, former CEO of Continental, which merged with United in 2010.