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One anecdotal evidence that the U.S. economy is booming and consumer confidence is near all-time highs is the price action in MBUU, which makes sports boats.
I’ve been told that everything that moves should be leased and not bought, but this is not what many people are doing. Malibu Boats just reported the best quarter in their history. MarketSmith shows earnings and sales both grew 82% on a quarter-over-quarter basis, which is a significant acceleration compared to previous quarters. The market loved the results and sent MBUU’s stock 20% higher to new all-time highs. 1.1 million shares changed hands today, which was the second biggest volume in Malibu Boats’ price history.
People don’t buy sports boats because their business or family is growing. They buy boats when they have plenty of discretionary income to spend and feel confident about their future income.