NEWS BLIPS
Camping World Holdings (CWH) Praised For New Business Model
Editor's Note: This news item was retrieved and first published through Seeking Alpha's website.
You may have recently seen Camping World Holdings (CWH) in the news for expanding its retail locations nationwide, as well as being under new management. Seeking Alpha reporter also picked up on this and recommends buying Camping World Holdings essentially due to its new business model and CEO Marcus Lemonis. Camping World Holdings (CWH from now on) provides a comprehensive portfolio of plans, services, and resources to RV enthusiasts that they would need to operate, maintain, and protect their RVs, and indeed CWH has RV sales. It operates through two brands: Good Sam and Camping World. Their retail business, generates most of the revenue, the majority of which is due from the sale of new RVs, but is well-diversified through the sale of used RVs & services, particularly finance and insurance.
According to Seeking Alpha writer Sunny Goklani, "I’ve been following the RV (Recreational Vehicle) industry for some years now and have witnessed the growth it's undergoing, backed by favorable demographics and an improving macroeconomic backdrop." Why is he recommending buying Camping World Holdings? Well there's a long, long answer to that short and sweet question. For the most part Sunny argues that its diversification in products and services, new CEO at the helm, and brand following are very appealing, despite the fact that it's a "cyclical industry". Goklani continues: "Management has done a great job building the business in a way that there’s a sticky customer base in the long run to which the company can sell both products and services on as-needed basis. This enhances CWH's competitive position and provides some comfort in predicting sustenance of the top line." In concluding, he recommends CWH as the best option in the favorable RV lifestyle trend investment.
To view the entire article by Goklani showing valuation and more on the company's business model, visit Seeking Alpha.