Loses Largest Wake Boat Dealer and LawsuitsMalibu Boats filed an 8k with the SEC reporting the departure of its largest wake boat dealership group Tommy's Boats and an impending lawsuit filed by Tommy's Boats as well. Per the 8k, Tommy's Boats alleges among other things, "unjust enrichment". Tommy's Boats represented 33% of the powerboat sales category for Malibu and over 10% of the consolidated sales.
April 11th, 2024 8k SEC Filing by Malibu Boats:
www.sec.gov
Trade Only article:
www.tradeonlytoday.com
The article details that the lawsuit alleges possible nasty items:
“engaged in an elaborate scheme to overmanufacture and pump nearly $100 million of its highest priced, highest margin, slow moving inventory into fifteen (15) Tommy’s dealerships (collectively, “Tommy’s”) in order to artificially inflate Malibu’s sales performance, artificially claim increased market share in the industry, and artificially inflate its stock value during an obvious downturn in the recreational powerboat industry.”
MBUU trade ideas
Malibu Boats Inc. Faces Challenges and Prepares for RecoveryMalibu Boats Inc. (NASDAQ: NASDAQ:MBUU ) has long been a stalwart, known for its high-quality performance sport boats and a strong market presence in the United States. However, the company recently weathered a stormy fiscal quarter, marked by a significant downturn in key financial metrics. As the industry faces headwinds in the form of weak retail demand and rising costs, Malibu Boats ( NASDAQ:MBUU ) is not just acknowledging the challenges but actively recalibrating its strategy to navigate the turbulent waters and emerge stronger.
Financial Downturn:
The second quarter of fiscal year 2024 saw Malibu Boats ( NASDAQ:MBUU ) grappling with a substantial contraction in its business operations. Net sales plummeted by 37.7% to $211.1 million, reflecting a challenging economic environment for the recreational boating industry. Unit volume, a crucial indicator of market demand, dropped by 43.7% to 1,373 units. Gross profit, net income, and adjusted EBITDA followed suit with declines of 50.5%, 72.1%, and 60.2%, respectively.
CEO Acknowledgment and Strategic Shift:
Malibu Boats' CEO, Jack Springer, did not shy away from addressing the factors contributing to the downturn. He attributed the challenges to weak retail demand, increased dealer flooring program costs, rising interest rates, and elevated inventory levels. In response, the company is actively recalibrating its wholesale production to align with retail demand, demonstrating a proactive approach to address the core issues.
Springer expressed cautious optimism, highlighting signs of resilience in the brand following a year-end sales event. The upcoming boat show season is anticipated to provide crucial insights into the potential for a retail recovery. This strategic shift indicates a commitment to adaptability and responsiveness to market dynamics.
Long-Term Commitment to Growth:
Despite the short-term setbacks, Malibu Boats ( NASDAQ:MBUU ) remains steadfast in its commitment to a growth strategy. Leveraging its operational capabilities and variable cost structure, the company aims to navigate the current market turbulence and drive long-term shareholder value. The focus on strategic investments and market share growth showcases confidence in the underlying strength of the brand.
Guidance and Financial Outlook:
Looking ahead, Malibu Boats ( NASDAQ:MBUU ) has provided guidance for the full fiscal year 2024. Anticipating a net sales decline in the mid-to-high thirties percentage range year-over-year, the company acknowledges the challenges but maintains a forward-looking perspective. The adjusted EBITDA margin is expected to be down by 800 to 900 basis points, reflecting a realistic assessment of the current economic landscape.
Balance Sheet Resilience:
Examining the company's balance sheet as of December 31, 2023, reveals a resilient financial position. With a cash position of $55.7 million and total assets of $879.9 million, Malibu Boats ( NASDAQ:MBUU ) demonstrates financial stability even in the face of adversity. Liabilities stand at $251.3 million, with stockholders' equity at $628.7 million, indicating a healthy balance sheet and the ability to weather short-term challenges.
Conclusion:
Malibu Boats Inc., ( NASDAQ:MBUU ) finds itself at a crossroads, facing short-term headwinds in the midst of economic uncertainty. However, the company's strategic recalibration, commitment to growth, and resilient financial position suggest that it is well-positioned to navigate the current challenges. Investors and enthusiasts alike will be closely watching as Malibu Boats ( NASDAQ:MBUU ) charts a course for recovery in the dynamic waters of the recreational boating industry.
MBUU ShortWith long term support broken and weekly gap right below, this name will likely trade down below 41. Strong fundamental suggests a turnaround at a micro level but macro headwinds/ recession fear might hit recreational industry hard, thus creating amazing buying opportunity.
This name deserves a spot on the watchlist!
PS - Not financial advice. Do your own due diligence.
MBUU - ready to turn corner soon?? maybeMBUU - ready to turn corner soon?? perhaps UP...and UP...at some point...as it is a STRONG BUY RATING....It should hold at this spot for support levels.. imo. We shall see. EITHER WAY IT IS BUILDING A BASE AT THIS SUPPORT LEVEL NOW --- from what I can see...
It has just layed low for volume in the past week or so.. during this panic MARKET sell, none the less the MBUU stock just slowly went down to the bottom of the channel. (NOT in a panic sell mode).
I think Malibu Boats is ready to go up as it has reached the bottom of the channel with all the negative NEWS on Coronavirus, although it has just followed the panic sell IMO.
Sales may take a slight hit -- although I believe they are not linked to ASIA for any supply chain from what I can see (please correct if Im wrong.) Production is done is US and Australia.
NOTES RE: MAILBU BOATS;
Malibu Boats is an American manufacturer of recreational boats, founded in Merced, California in 1982, and currently headquartered in Loudon, Tennessee with additional production facilities in New South Wales, Australia. Malibu is "the world's largest manufacturer of watersports towboats", used both recreationally and in water skiing and wakeboarding events
Brands: Malibu has maintained two major brands in the industry, Malibu Boats and Axis Wake and as of 2017, has acquired the competing Cobalt Boats brand.
STRONG BUY RATING
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Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts only of the markets. Thank you.
MBUU - nice steady bounce UP --- off of the 618 Fib chartingLineMBUU - nice steady bounce UP --- off of the 618 Fib chartingLine IMO. with room to grow again... IMO.
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Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts only of the markets. Thank you.
MBUU - Malibu Boats getting close to the 618 Fib Retract levelsMBUU - Malibu Boats getting close to the 618 Fib Retract levels ----- After a bit more pulldown possible into the mid $44 range --(if needed) ---- then some buy in opportunities could be here.. IMO
NEW YORK Analysts Target US $55.71 ▲ (21% Upside)
Rated Zack -1 - Strong BUY.
___________________________________
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts only of the markets. Thank you.
MBUU -- terrific CLIMB upwardsMBUU -- terrific CLIMB upwards ---- as was indicated. Reached the highs ---- it may need to cross the line to gain more momentum or it will retract a bit now. IMO
___________________________________
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts only of the markets. Thank you.
MBUU --- another view form the DAY CHANNEL longer termMBUU --- MALIBU--- another view form the DAY CHANNEL longer term, it could also still see a bit more gains for now riding upward..... first before pulling back.
We shall see...
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of entertainment use only. Thank you.
MBUU - MALIBU BOATS . 7-11 % rise and pullbackMBUU - MALIBU BOATS . 7-11 % rise and pullback . within the channel.... Look to me as it is nearing a top and MAY possibly pullback for a bit.... Take some profits off if needed.
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of entertainment use only. Thank you.
MALIBU BOATS --- on the daily reached the top.MALIBU BOATS --- on the daily it NOW reached the top. It should prgress downward in the daily channel before it rises again ---- higher lows to be achieved first. It may drop down into the lower $41.00 - $41.50 range first ---- from what I see, before another climb. Thank you.
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of entertainment use only. Thank you.
MALIBU BOATS --- nice climb out of the downward channel. !! MBUU -- Malibu Boats --- nice climb out of the downward on the WEEKLY channel view !!
may move up --- possible 28% gains before a resistance point. Interesting news and recents BUYS from analysts. Lets see how it start to play this coming weeks.
If it continues -- The breakout came back at Mid November 2019 --- since then it has continued this upward climb.
Based on 4 analysts offering 12 month price targets for Malibu Boats in the last 3 months they have indicated that the average price target is $50.00 with a high forecast of $52.00 and a low forecast of $48.00. The average price target represents a 13.51% increase from the last price of $44.05.
Disclaimer:
Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of entertainment use only. Thank you.
MBUU upside breakout possibleMalibu Boats just got some big analyst upgrades on the strength of upward earnings revisions. It's been in a gentle upward channel, but I actually think it could break out and establish a steeper upward channel leading up to earnings in September. Watch for the upside channel breakout and then buy the pullback.
As always, this does not constitute investment advice, just an idea as to how the market will move. Full disclosure: I know the founder of this company.