History vs. Hope: The future of the marine industry

ALEXANDRIA, Va. — Marine Products (NYSE: MPX) stock has remained afloat despite discouraging results over the last few months. The company’s quarterly financial reports showed a drop of 7.5 percent in sales, compared to the flat sales it was forecasting. Its profits, too, dropped 20 percent, as opposed to the 10 percent drop it expected.

Marine Products’ stock, however, dipped only $0.06 in value. Now, a contributing columnist – and MPX shareholder – asks “what gives?” in an opinion piece on The Motley Fool, an investing Web site dedicated “to educate, enrich, and amuse individual investors around the world.”

Marine Products executives reportedly commented that either a “’nice turn in the economy’ might help entry-level buyers feel more confident in their finances, and more willing to pony up for a new boat” or “Failing that, ‘declining boat prices, declining insurance costs, and better consumer sentiment’ would do the trick.”

Through analyzing results and comments from Marine Products, Brunswick Corp. (NYSE: BC), MarineMax (NYSE: HZO) and West Marine (Nasdaq: WMAR), including some contradictory expectations, the columnist summarizes his comments by suggesting history might win out.

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