By Dennis Amor
Have
your say
INVESTORS sitting on the sidelines should keep a careful watch on the
Perth-based Fleetwood Corporation, which builds the Windsor and Coromal
range of caravans.
That's the view of a team of renowned Australian finance journalists who
own and produce a twice-weekly Australian stockmarket outlook newsletter.
TheBull predicts continuing success for Fleetwood which, it says,
is one of six Australian Stock Exchange companies offering stocks
successfully riding on the back of the baby boomer generation.
Launched in 1964, Fleetwood produced caravans and caravan accessories and
listed on the ASX in 1987 after expanding into caravan parks and the
manufacture of park homes.
The company's activities today comprise the Camec Group, Coromal and
Windsor caravans, Flexiglassare, Fleetwood and BRB Modular ... all focused
around the rapidly growing recreation, retirement and resources sectors.
Its share prices have soared around 400 percent in the last decade ... a
"stunning performance," according to TheBull.
Referring to the future, it suggested there were three compelling reasons
why Fleetwood merited further research as a stock of note.
"First, while the mining boom is slowing we have another resource in
abundance many expect to experience substantial growth going forward –
natural gas," it explained.
"With their expertise in mobile accommodation villages with the mining
companies, they are well positioned to benefit from expansion in
accommodations needed for major natural gas exploration and drilling
sites."
Secondly, TheBull pointed out that about 70 percent of caravan
sales were to Australians over the age of 55.
"The existing grey nomad movement is sure to expand as more Aussies look
to the open roads to explore the wonders of our country after decades
cooped up in offices and factories and shops all across Australia," it
said.
"The grey nomads – seniors who take to the open road in vehicles that
provide accommodations as well as transport
– have choices that span all income levels.
"Caravans with features that rival the comforts of home are available for
wealthy boomers while smaller and more modest caravans meet the needs of
those with lower incomes."
And the third reason referred to the dwindling supply of caravan parks
where the grey nomads could stop to rest on their journeys. TheBull
thought Fleetwood was well positioned to benefit because it was "in that
space as well".
It concluded: "If you are sitting on the sidelines watching the share
market gyrations waiting for some kind of sure thing, the baby boomer
phenomenon offers possibilities that, while there are no guarantees, come
with very favourable odds."
