Canadian-based Bombardier Recreational Products Inc. announced last week that it's closing the plant in Benton. The company cited a decline in sales in the marine industry, most notably those involving sport boats.
Row, row, row your boat... gently down a stream.....
In the past five years, Brunswick (a major playa' in the sport boat industry) stock is up around 11%. The company's stock took a major hit going from roughly $24 a share down to around $4 a share in 2008. With no outside intervention, the company might well be reorganized in a bankruptcy or completely out of business. But, it has rebounded nicely since 2008 but only because of the massive intervention that had to occur via ZIRP. The momentum has slowed. BC was up 67% during 2010 and 2011. During 2012, BC stock was still up but just under 16% and appears to be stalling. Recreational, gas-powered watercraft are THE picture of non-necessitous consumer spending.
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