The Bottom Line 6-21
Last week’s Bottom Line focused on our Owens Corning (OC) thought piece, and this past Friday, the stock got a boost on the company’s 8K filing with changes regarding shareholder proposals. This appears to be a proactive move in advance of potential activist shareholder pressures. We have seen increased activism by shareholders in TRG’s coverage, and we expect to see this trend to continue. This week, we published our Q2’19 RV Dealer Survey, and the theme of “less bad” was pervasive. Given our nearly 20 year coverage of the RV industry, “less bad” = better stock price performance. With that in mind, we focused on whether the worst was behind THO stock. After recovering from December 2018 lows, THO stock recovered losses by early 2019 and traded roughly flat through late April and has since traded down 15%. THO stock historically has traded directionally with its backlogs. While backlogs are still down YOY, the direction of the momentum of backlogs appears to have bottomed.