Camping World IPO Holding Early Returns

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Camping World Holdings met Friday’s opening bell with its IPO that placed 11.4 million shares placed at $22, raising $251 million.

At its peak, the stock reached $24.35 but by 2 P.M, the company’s ticker, CWH, was holding a %5 return on 10 million in volume but closed at $2.50 or %2.27.

The company believes they have a competitive edge due to their diverse holdings and claims says to the largest network of RV-focused retail locations in the U.S.

Driven by top and bottom line growth spread throughout 36 states with a total 120 outlets the company has increased its annual revenue to $3.33 billion in 2015. With less consistent growth, Net Profit has also shown a steady annual increase, up from $5.4 million in 2011, to $178 million in 2016.

The Recreational Vehicles market has seen steady growth as recession-riddled millennials and retired baby boomers look for alternative leisure activities.

While it is estimated that in the largest transfers of wealth the baby boomer generation will be left behind $30 trillion to their Gen X and Millennial children.

This may help CPW begin to look like a candidate for a potential Millennial themed portfolio and we will continue to watch this one from the sidelines.

 

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