Inside Wall Street
ALL ABOARD AT OUTBOARD MARINE
Big players won't want to miss the boat in the next up cycle of Outboard Marine, the world's largest maker of outboard motors and a major manufacturer of pleasure boats. They argue the stock is now on its way to higher levels. Marine caught a wave in November, when it was trading at 17. It's now at 25.
"This is the time to get into the stock--when the momentum is on the upswing," says money manager Mark Boyar, who notes the stock has a history of sharp swings.
Outboard Marine, he argues, offers the savvy investor an opportunity to reap hefty winnings relatively quickly. Boyar notes that Marine hit a high of more than 30 in 1972, before diving to 5 by the end of 1974, when the oil-embargo crisis hit. Then in 18 months, the stock more than tripled, to 18, before plunging to 4 during the recession of 1980. Marine ran up again in 1989 to a high of 46 and then dropped to 9 in 1990.
Boyar believes the next target is around 50. He says recent restructuring has cut costs in many plants. "The perception is that demand for engines and boats is picking up smartly. That's when you'll see interest in the stock also start to jump," says Boyar.
The company lost $8.41 a share in the year ended Sept. 30, 1993, vs. a 10 cents gain in 1992. But S&P analyst Tom Graves figures Outboard will earn $1.15 this year and $2.75 in 1995.GENE G. MARCIAL