Category Archives: oud

RV Industry Rumbles Down The Road To Higher Profits

Almost unnoticed, the recreational vehicle and manufactured home industry group has motored nearly to the top of the heap. The group was ranked No. 4 out of 197 groups based on six months of performance as of Tuesday’s IBD. That’s up from No. 53 just six weeks ago. There are only six companies in the group, but four of them have best-possible Composite Ratings of 99. Demographics, favorable market conditions and an economic recovery are tailwinds pushing the industry along the road to higher profits. In an investor presentation earlier this month, Thor Industries ( THO ), a major player in the RV market and one with a 99 Composite Rating, noted that although consumer sentiment has softened a tad this year, the outlook regarding personal finances is still at its best level in 10 years. Domestic vacations are viewed as safer than international travel, and lower fuel prices are making RV ownership more attractive. At the same time, baby boomers representing 24% of the population are retiring and having more time for hitting the open road. Camping in tents and cabins remains popular, and Thor noted the majority of RV owners started out as tent campers. Pricing remains competitive, the company said, but heavy discounting has been much reduced. The Recreational Vehicle Industry Association’s forecast earlier this month projected wholesale shipments increasing to 381,800 units this calendar year, a 2% improvement from 2015. On March 7, Thor reported fiscal Q2 earnings of 97 cents a share, well above estimates of 62 cents. That marked a 70% increase from a year earlier. The next day, the stock gapped up and closed 6% higher on big volume. The stock is completing the right side of a year-long consolidation. Acquisitions have helped it grow. And it recently added manufacturing capacity. It makes both towable and motorized RVs, which include Class A, B and C motorhomes. It operates from 148 facilities in Indiana, Michigan, Ohio and Oregon. Patrick Industries ( PATK ) is another company in the group with a 99 Composite Rating. It makes components for RVs and manufactured housing, as well as kitchen cabinets and furniture for homes and businesses. So it’s not only riding the uptick in the RV market, but it’s also benefiting from a boom in homebuilding and home remodeling, with Patrick also offering quartz and granite countertops. Earlier this month, the company completed the acquisition of Progressive Group, which is a distributor and manufacturer for major-brand electronics, with seven locations in 16 states, primarily in the Midwest and mountain states. Patrick said the acquisition will allow it to expand its presence in the electronics distribution market. Like Thor, it has carved out an undefined base, and it’s nearly to the top of it. Also like Thor shares, the stock popped after reporting earnings Feb. 18 that were well above estimates. Winnebago Industries ( WGO ) is probably the best-known name in the group. It has a 94 Composite Rating. Earnings growth has been ragged in recent quarters, but the stock perked up after reporting earnings March 24 that were 17% higher than a year earlier.

Facebook Messenger Becoming A Swiss Knife That Could Poke Apple

Facebook ( FB ) is in position to make its widely popular Messenger platform an all-in-one tool that could include a partnership or a battle with Apple ( AAPL ) and its Apple Pay system. An investigation by The Information found software codes inside Facebook Messenger that could enable the messaging service to handle in-store purchases, among other features. Messenger currently allows people to send cash between users. But data from Apple iOS code examined by The Information suggest Facebook could provide users the ability to pay for goods in person. Facebook has gradually increased the features in Messenger, such as live video calling or the ability to request a ride from Uber. During Facebook’s quarterly earnings conference call in January, CEO Mark Zuckerberg said newer services would include the ability to book airline tickets, as well as new payment features. But rather than proving its own payment service, Zuckerberg suggested a partnership. “We don’t view ourselves as a payments business, that’s not the type of company that we are,” Zuckerberg said on the call. “We’ll partner with everyone who does payment. We look at the stuff that Apple is doing with Apple Pay for example as a really neat innovation in the space that takes a lot of friction out of transactions as well.” He noted that small tests began about one year ago with some e-commerce services, so that people who bought goods could follow up with customer service or purchase more goods. “We started off pretty slowly, but that’s going to be some of the basis for how we look to make Messenger a business going forward,” Zuckerberg said. “And we’re happy with the initial results.” Facebook Messenger As Payments Vehicle Unclear By entering the mobile payments fray, Facebook could either partner or compete with Apple, Android Pay by Alphabet ( GOOGL ) and other services. “There is clearly the potential for Messenger to be used as a payment mechanism,” wrote Richard Windsor, an analyst at Edison Investment Research, in a research note. “This is all well and good, but the real secret to payments is not the app but the back-end and fulfillment, and how this will work is unclear.” Facebook rivals in Asia, such as WeChat from Tencent Holdings ( TCEHY ) and Alipay from Alibaba ( BABA ), already provide the ability to pay for goods through the app platform. “Although this is virgin territory for Facebook, its Asian rivals have been on this path for quite some time,” Windsor wrote. He said Facebook will face some challenging obstacles in expanding its Messenger features to new areas, but said it’s on the right track. “We see Facebook expanding into media consumption, shopping, gaming and search which will give it over 80% coverage of the Digital Life pie and market leadership,” Windsor wrote. “However, it is one thing to cover the pie and quite another to monetize it. Assuming that Facebook gets it right, it is on the way to create a thriving ecosystem that according to Edison estimates could allow it to double its revenues over the next five years or so.” Facebook stock was up 2%, near 116, in afternoon trading in the stock market today . Facebook is trading comfortably above its 50-day moving average as it works on a new base with a 117.69 buy point.

Twitter Adds New Technology To Bring Images To Visually Impaired

Twitter ( TWTR ) said people using Apple ‘s ( AAPL ) iOS or  Alphabet ‘s ( GOOGL ) Google Android can now add descriptions to images in tweets, a benefit to the visually impaired. The update allowing descriptions — also known as alternative text — empowers “ everyone to ensure content shared on Twitter is accessible to the widest possible audience,” said Twitter engineer Todd Kloots in a blog post Tuesday. . “Photos have been at the center of some of the biggest moments on Twitter,” said Kloots. “ As a core part of the Twitter experience, it’s important that images shared on our platform are accessible to everyone, including those who are visually impaired.” People can use the feature  via the “compose image descriptions” option in the Twitter app’s accessibility setting. When an image is added to a tweet, the user can tap the “add description” button and insert a description of up to 420 characters to the image. Visually impaired people will have access to the description by using assistive technology, such as screen readers and braille displays, Twitter said. Smartphones have other accessibility features, including VoiceOver, the iPhone’s built-in gesture-based app that reads text on a touchscreen aloud, and Google Android’s TalkBack, through which visually impaired users can access anything on their phones. Voice Activation Usage Still Low Voice-activated services, including Apple’s Siri, Amazon.com ‘s ( AMZN ) Alexa, Alphabet’s Google Now, Microsoft ‘s ( MSFT ) Cortana and others, can assist all consumers, including the visually disabled, as people increasingly rely on mobile phones for shopping, communicating and information. But surveys have found those voice-activated services aren’t getting much use. Just 13% of U.S. mobile phone owners use a voice-controlled personal assistant on their device each day, according to a survey last June from 451 Research. The Americans with Disabilities Act requires websites and mobile applications to be accessible. Google announced its Google Impact Challenge: Disabilities last year with a $20 million grant for technology innovators in the nonprofit community who work on technology to make people with disabilities more independent. In addition to Twitter and Microsoft, Adobe Systems ( ADBE ), Dropbox, LinkedIn ( LNKD ), Yahoo ( YHOO ), Facebook ( FB ), Intuit ( INTU ) and others have jointly asked universities  to train computer students in accessibility software design and are requiring new hires to demonstrate some familiarity with it, according to the Mercury News. Besides facing competition from rivals such as Facebook, Twitter is struggling to expand its user base as its user growth has slowed. Twitter has launched programs to reel in “logged out” users who visit Twitter’s site but don’t have accounts of their own, making them less coveted by advertisers. Twitter stock was up 2% in afternoon trading in the stock market today , near 16. Image provided by Shutterstock .