The first year of
retirement is typically
when those newly
escaped from the
workforce spend the
most money. First-
year retirees spend
money on things
they’ve previously
only dreamed about:
long vacations, home
remodeling, or the purchase of a luxury car or an RV. And
that could bring some nice profits to your
portfolio. Holiday road         According to the Recreation Vehicle
Industry Association (RVIA), factory to
dealer deliveries of RV’s are expected to
hit their second highest level in some 25
years in 2004. Long-term demographic
trends show that as baby boomers retire
over the next few years, the number of
RV owners could rise by 15%.         Statistics recently released by the
RVIA show December motor home sales
up an amazing 26% from November’s
sluggish 2% growth. And, according to
the US Census of Retail Trade, the RV
rental business is a US$191 million
industry and growing.         The RV industry is on course to make
US$12 billion a year. In addition to higher
incomes and low interest rates pumping
RV sales, concerns about international
travel may also increase the appeal of
these vehicles.         Why the surge in RV interest? The
patriotic wave that followed the 9/11
attacks has shown that Americans want
to travel in America. Besides the fear of
international travel, more and more
Americans would rather spend their
tourist dollars at home than spread them
to foreign countries. And RV’s offer the
most comfortable way to travel the coun-
try without checking in and out of motels
and stopping for greasy fast food meals. Fleeting profit potential
with Fleetwood There are many companies in stiff competition in today’s RV market.
Winnebago (WGO:NYSE) has become
synonymous with recreational vehicles.
Although WGO is a very well managed
company, its price tag of more than
US$70 is a little too rich for my blood.         I’ve found an RV play that is currently
trading in the US$14 neighborhood: Fleetwood Enterprises (FLE:NYSE). After announcing strong momentum across all business lines at the 41st annual
RVIA trade show, Fleetwood proceeded to
post sales resulting from the show that
exceeded the company’s goals, with a
20% increase over 2002. FLE saw 5%
growth in Q2 revenues to US$67.4 million.
Q2 net income came in at US$3.8 million
or 10 cents per diluted share, compared to
US$4.6 million or 13 cents per diluted
share last year (this included a US$2.6 mil-
lion gain from real estate sales).         For the first six months of FY 2004,
revenues increased by 6% to US$1.32 bil-
lion from US$1.25 billion. Net income
was US$5.7 million or 15 cents per share,
compared to US$3.1 million or 9 cents
per share in 2003.         Fleetwood is not only a leader in RV
manufacturing, but in manufactured
housing as well, and recent news from
lending giant Fannie Mae could help
shares ease up nicely. In an effort to
revive the sagging mobile home market,
Fannie Mae seeks to strengthen it by cut-
ting financing costs. New offers will let
mobile home buyers get 30-year financ-
ing for a down payment as low as 5%.
Fleetwood shares shot up 15% the day
the news was announced.         RV’s will be the next popular trend in
travel—   let’s get in before the hype and
maximize our profit potential. Buy shares of Fleetwood Enterprises (FLE:NYSE)
today under US$15.   n 12 Hotline: 410 528 8228 TAIPAN Publisher:
J. Christoph Amberger Editors:    Christian DeHaemer,
Brian Hicks, Siu-Yee Ng,
Briton L. Ryle, Adam T. Lass,
Bryan Bottarelli, Ian Cooper,
William Colburn, Martin
Denholm, Ann Sosnowski,
Erin Beale Managing Editor:
Ned Humphrey Art:   Elliana Brocato Fulfillment:   Alex Ferguson Tours and Conferences:
Barbara Perriello Customer Care:
Call (508) 368-7498
9 A.M.  to 5 P.M.  Eastern Time Email:
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T  #123384745 TAIPAN www.taipanonline.com Ramblin’ baby boomers can
steer us towards profits Erin Beale