Company Description
Headquartered in Lake Forest, Ill., Brunswick Corporation
endeavors to instill "Genuine Ingenuity"(TM) in all its leading
consumer brands, including Mercury and Mariner outboard engines;
Mercury MerCruiser sterndrives and inboard engines; MotorGuide
trolling motors; Teignbridge propellers; MotoTron electronic
controls; Northstar marine electronics; Navman GPS-based
products; IDS dealer management systems; Sea Ray, Bayliner,
Maxum, Hatteras, Meridian, Sealine, Bermuda, Ornvik, Savage and
Uttern pleasure boats; Baja high- performance boats; Arvor,
Boston Whaler and Trophy offshore fishing boats; Crestliner,
Lowe, Lund and Princecraft aluminum fishing, deck and pontoon
boats; Attwood marine parts and accessories; Land 'N' Sea marine
parts and accessories distributor; Life Fitness, Hammer Strength
and ParaBody fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables; and
Valley-Dynamo pool, Air Hockey and foosball tables. For more
information, visit http://www.brunswick.com .
(Source: Company Press Release)
[Source: Company Press Release]
Reasons to Invest:
This week's Drip of the Week, banked on one tremendous third
quarter. In fact Q3 figures ($72.9 million) for this
recreational DRIP nearly doubled their previous Q3 figures of
$37.9 million. Brunswick Corp (NYSE:BC) raked in $0.75 a share
(including a one time tax gain of $0.10 per share), beating the
mean EPS analyst estimate by a penny.
Following the more than upbeat earnings announcement, Brunswick
raised its 2004 earnings outlook from $2.60-$2.68 to $2.70-$2.75,
however the current First Call average estimate for BC's full-
year earnings is still set at $2.68 per share.
Furthermore, Brunswick raised their annual dividend allotment by
20 percent to $0.60 per share from $0.50 per share on October
25th. Brunswick's Chairmen and CEO George Buckley noted "The
increase reflects the company's strong cash flow and our ongoing
objective to enhance value for our shareholders." I am
encouraged by the fact that the company is standing behind their
products, and making enough money to share it with its valued
investors. One cannot be disappointed in an additional 20
percent per year. The dividend is payable on December 15th, to
shareholders on record by November 22nd, which leaves us three
weeks to get enrolled and start reinvesting!
In essence of BC's Point-and-Figure chart, I note the stock on a
Double Top Breakout. Oops I almost forgot to mention that the
bullish price object is 99.50. That's right, 99.50. When one
considers that BC is currently trading in the mid to high
forties, it's easy to calculate that if the price objective is
hit we could be harvesting hypothetical gains of over 100
percent.
There is hardly any recent news or future news worth mentioning
at this point in time. As I have stated before, the news
surrounding our "Drip plans" generally has little persuasion on
the long-term trends of our portfolios. I also tried to see if
we needed to concern ourselves with Brunswick's closest
competitors, but BC's competitors are few and far between, and
none of them have market caps in the billions (BC's market cap is
4.48 billion), which is a good sign that BC owns their market.
I am quite optimistic that BC will continue to outperform. For
starters, most of the DRIPs featured on our DOTW's have been in
regression channels for close to a year (minimum). At times, I
pondered questions like, "Has this stock rose for too long? Am I
getting involved with this DRIP too late? I am dumping money
into a stock that is already overextended?" Any aged DRIP
investor knows that jumping on the bandwagon too late is never a
good thing, especially when it comes to your own personal
finances, or well-being. However, I have featured DRIPs with
long-standing regression channels because the fundamentals
painted a picture of continued strength in the DRIPs given
sector.
So what do you make out of all of this? BC recently broke out of
a four-month slump in July. At the beginning of August Brunswick
shot higher and started using its simple moving averages as
support, as opposed to resistance (as seen in April-July), which
has helped to formulate a three-month ascending channel. On that
note, I anticipate seeing BC's channel used as support and
resistance for a long time to come. The fact that the channel
has yet to mature - like most channels do - entices me to believe
that we could have found a DRIP in its beginning stages of
maturity. I can't wait to watch this stock grow up (GRIN).
The daily chart illustrate a bit of consolidation on the MACD
indicator, which is to be expected, especially after the strong
boom from Monday-Wednesday. The key thing to note on the daily
chart is that the stock has successfully used its underlying
moving averages as support for higher ground. It is also
important to mention that BC just set a new ALL-TIME high on
Wednesday (October 27th, 2004) of 48.60, which bodes well for a
continuation of the upward trend.
A quick look at the weekly chart and I note a gain of
approximately 15 points in 2003, and to date BC has gained
approximately 15 points over the course of this year. I am
forecasting 10-20 gains over the next three years, which would
mean that BC will more than likely reach its current Point-and-
Figure bullish price objective of 99.50 by the end of 2007.
This ends another exciting episode of the DripAdvisor.com Drip of
the Week. Stay tuned next week, as we will spotlight another
stock worthy of the DripAdvisor.com limelight.
Remember:
Plan your trade, and trade your plan.
Side note: Election Day is just around the corner and I
hope that each of you have set aside time to vote (no disrespect
to my faithful readers outside of the U.S.). Regardless of what
some people say, your vote does matter, especially since the
current polls on Talking Heads Television, otherwise known as CNBC
and MSNBC, have each candidate at a deadlock. I would also like
to wish each of you a Happy Halloween.
Until Next Week,
Nich Sheldon
Editor In Chief
www.dripadvisor.com
questions@DripAdvisor.com
Broker Recommendations
Strong Buy 2
Buy 4
Hold 4
Sell 0
Strong Sell 0
Brokers Covering 10
DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = No
Accept Foreign Accounts: Yes
Temper Enrollment: No
Min/Max Investment = $10-$2,000/Month
Reinvestment Fees -
Dividend investment fees: $0.00
Cash investment fees: $0.00
Auto reinvestment fees: N/A
Transfer Agent:
Brunswick Corp.
800-546-9420
Corporate Headquarters:
1 N. Field Ct.
Lake Forest, IL 60045
Phone: (847) 735-4700
Fax: (847) 735-4765
