CWH: A Winning Value/Growth Play w/ improving marginsCWH has been a favorite pick of mine since this summer. The stock has been trading in a pretty tight range as of late and showed a strong support level at $32 during the recent pullback in high multiple names (which it is not). I absolutely love this entry here in the mid-30s and would be targeting mid-40s as an exit level for a trade. This is a long-term investment for me, but I will trim it at $45. I see the stock continuing momentum over the next few weeks and breaking into the 40s behind strong momentum.
Here is my thesis:
1- A+ ceo. He has also increased his position from 257,504 shares to 544,221 (+113%). From $10 to $32 (as of September 2019, has bought more since)
2- expanding margins- They are creating an RV-valuator + AirBnB for RVs through their “Good Sam” brand.
3- Camping/outdoors has experienced growth like never before because Covid
4- all demographics buy RVs ( average monthly payment for RV $300 a month/ average purchase price of RV only $30K
5- Breaking out from downward resistance trendline.
