General Cycling Discussion - Cycling Related Investing - Got any Tickers?
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05-28-08, 04:13 PM
The topics are rolling in on all the forums: News articles showing bike-adoption skyrocketing from rising gas prices.
And everywhere people seem to agree: This is just the tip of the iceberg of new bike commuters, car-free livers, and based on being introduced through those means... new road/mountain/fixed/etc enthusiasts.
So my question is this: What bike and bike-related companies are publicly traded so that we may reap the windfall profits as sales skyrocket?
I looked into it a little and Cannondale is publicly traded (BIKEQ) but from an investing standpoint, they're not a win. Their volume is incredibly light (3,300 shares traded today) so liquidity is poor. And it looks like they're not releasing quarterly earnings anymore, unless I'm looking in the wrong places.
Does anybody know any other publicly traded companies worth checking out?
05-28-08, 04:27 PM
I do not see a win by investing in public bike producers. The quality bikes are found in the small shops producing specialized frames, and using quality components.
Or, investing in older vintage bikes and restoring, then selling to those yearning to recapture their youth. Just like muscle cars;)
Bike tire manufactures and tube makers maybe where the secret will lie, a newer technology that will capture everyone's interest, that is where to hunt for the next ...
First, I'd invest in Shimano (SHMDF is their symbol), just because they are everywhere, their stock is undervalued this quarter, and they have bike parts for every range of bikes, from something Joe Sixpack gets from X-Mart that goes directly to the garage for a new year's day resolution, to stuff that wins races day after day, year after year.
Second, I'd go for Trek, but I don't know if they are publically traded or not.
I don't have any stock in Shimano, or any companies mentioned, but just think they are good buys.
05-29-08, 10:39 AM
Stay away from BIKEQ, it's no longer really related to Cannondale as we know it. Cannondale was bought by a private firm, Pegasus, in 2003.
SHMDF is weird too. it's currently close to it's 52-week high, practically NO volume (10-day average is 105 shares??), and that's the extent of the information my broker (Schwab) has on them. The Tokyo Stock Exchange site doesn't give much more info either.
I couldn't find evidence that Trek is publicly traded.
05-29-08, 10:49 AM
There's Dorel Industries (DIIB (http://finance.google.com/finance?q=DIIB&hl=en)), which owns Pacific Cycle, which "designs and markets bicycles and scooters under the DYNO, GT, InSTEP, Mongoose, Murray, Pacific Outdoors, Powerlite, Roadmaster, and Schwinn brands".
05-29-08, 04:07 PM
Dorel now owns Cannnondale.
Sounds like something to buy into for long term, because Dorel covers the bike gamut, from the X-Mart specials to the high end stuff.
05-29-08, 09:06 PM
I suspect that the next "Bike Boom" will affect the x-mart stores much more than the "real" bike makers.
Wal-mart probably sells more bikes than all other stores combined.
05-29-08, 10:50 PM
the shimano suggestion is a good one. they are fairly diversified and have the wealth to buy innovation... i may buy some myself. if you really want to make coin, invest in oil exploration - SGR - shares up 200% in 2 years.
06-06-08, 12:50 PM
I'd probably have to second the Shimano idea if you have the ability to trade on the Tokyo stock exchange. The company has something like 70% market share in bike components and I agree with you that trends look pretty good for biking in terms of growth.
06-06-08, 03:21 PM
Dorel also has a lot of other stuff -- kid's furniture, other things on those lines. Stock has been flat around 30 Canabucks for a while, but it was as high as 40 in July last year. Like any investment, do your homework, and don't just buy because you think it could be hot.
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