Stock Of The Day BGG Briggs-Stratton

[James Boston]

After my guesswork on Tecumseh turned into a complete debacle, I decided to try this one. Of the industry leaders, the have the highest earning growth. Thoughts?

[James Boston]

So....this "stock of the day" thing hasn't really gone over too well.

[plj8624]

That company looks fairly mediocre to me. A decent smaller cap, but the prospects for the business look unexciting.

[AceHigh]

[ QUOTE ]
So....this "stock of the day" thing hasn't really gone over too well.

[/ QUOTE ]

Yeah...I agree. It's probably a little to often.

Are you up for a stock of the week? Post a stock of the week Monday or Tuesday and I will post my pick under your thread. Maybe will can get some good picks/threads going here.

[xtravistx]

I enjoy reading them and the ensuing discussion, though haven't had anything to contribute yet. Keeping it up in some form would be cool.

-xtravistx

[BadBoyBenny]

James,

Keep it up, we don't need a stock every day to call it stock of the day. I promise I will post one or two in the next couple weeks.

Also a little bit about what Briggs Stratton does would help, even if you are pasting the Yahoo Finance description. I don't feel like looking all this stuff up.

[Redd]

[ QUOTE ]
I enjoy reading them and the ensuing discussion, though haven't had anything to contribute yet. Keeping it up in some form would be cool.

-xtravistx

[/ QUOTE ]

Agreed.

[James Boston]

[ QUOTE ]
Are you up for a stock of the week? Post a stock of the week Monday or Tuesday and I will post my pick under your thread. Maybe will can get some good picks/threads going here.

[/ QUOTE ]

We probably don't need to make anything too official with the low traffic in this forum. Call it whatever, we should just not expect a new daily post to get that many replies. I've leave this one for a while and see what happens. But by all means, if you have some picks, post away. Maybe I'm just not putting exciting stuff up for discussion, but then again my investing philosophy is pretty vanilla.

[James Boston]

[ QUOTE ]
Also a little bit about what Briggs Stratton does would help, even if you are pasting the Yahoo Finance description. I don't feel like looking all this stuff up.

[/ QUOTE ]


From Yahoo Finance:

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Briggs & Stratton Corporation engages in the design, manufacture, marketing, and servicing of air-cooled gasoline engines for outdoor power equipment....Briggs & Stratton conducts operations in two segments: Engines and Power Products. The Engines segment's products are used primarily by the lawn and garden equipment industry, for applications, such as walk-behind lawn mowers, riding lawn mowers, and garden tillers. These engines are also used on products for industrial, construction, agricultural, and other consumer applications that include generators, pumps, and pressure washers. In the Power Products segment, the company's two principal product lines are portable and home stand-by generators, and pressure washers.

[/ QUOTE ]

[parttimepro]

I'm interested but not convinced about this company. It looks great based on the first things I look at: low P/E and 10%+ predicted growth. I see two problems:
1. high debt. It bought out Murray, a customer who couldn't pay its bills. BGG has a pretty high debt load because of this.
2. Increasing inventory. This may mean discounts to move product, which would probably slow down growth.

It is pretty cheap, though, and these problems are probably factored into the price.

[James Boston]

I don't see either of these as long-term problems. Yes, they probably are causing the cheapness, But if you feel like one of the industry leaders will be capable of managing this debt, and will be able to increase profits by now owning one of their former customers, then doesn't cheap=good.

[GeorgeF]

FWIW, A Chinese company bought bankrupt Murray lawn mowers. I have to wonder of the Chinese plan to ship their own mowers, with their own engines, to the US under the Murray name.

[James Boston]

We have contradicting posts on the Murray buyout. I knew Murray went under, but this was this first I heard that BGG bought it. Clarification is in order.

[parttimepro]

All I know, I read on a Yahoo message board. I defer to the other poster.

[imported_bingobazza]

[ QUOTE ]
So....this "stock of the day" thing hasn't really gone over too well.

[/ QUOTE ]

Its making you look like a ramper, which I dont think you are. But then again, many people here wont know what that is, so it might be a good idea to become one. /images/graemlins/cool.gif

now, I know a great Chinese gold mining stock that is about to rocket into the hemisphere, and I definitely buying 20 grands worth. Ive looked into this very carefully, so you dont have to....just buy this, you'll make a killing.... /images/graemlins/tongue.gif

Bingo

[James Boston]

[ QUOTE ]
Its making you look like a ramper, which I dont think you are. But then again, many people here wont know what that is, so it might be a good idea to become one

[/ QUOTE ]

I consider myself a value investor thourgh and through. Still, value investments deserve debate. My hope for the "stock of the day" was that we could discuss the pros and cons of investing in company x, not discuss what to pump and dump. I see now that the semantics of what I titled my thread imply that this is the stock we should all buy "today." My intentions were to start a new "daily" discussion. The stock of choice didn't have to be hot at the moment, in fact they could be arbitrarily chosen.