When you think of investing in the off road market, it typically brings to mind opening your wallet and trading a wad of cash for a much desired upgrade in hopes that your purchase will pay off in terms of performance, competition wins or future money back if you d3ired upgrade in hopes that your purchase will pay off in terms of performance, competition wins or future money back if you ever sell. However, new opportunities are arising for off roaders to literally invest in the market. Like, Wall Street kind of investing.
Take for example, popular shock and suspension component brand Fox. The widely recognized aftermarket suspension component manufacturer had its first public offering on the stock market on August 7th, raising $128.6 million dollars and closing at $18.89 – up 26% from their initial offering price of $15.00. Not bad money.
Other off road giants, like Polaris and Arctic Cat are also publicly traded on the New York Stock Exchange, while companies like Bombardier Recreational Products (BRP) who produce the Can-Am and Bombardier line of products work to make their mark in the stock market in an effort to raise capital.
Realistically speaking, none one reading this would rather pour over financials than be out eating up trails, but savvy financial management can be an avenue to having more money to invest into this overpriced love affair. With that in mind, as an investor, I like the idea of investing in companies whose products I utilize and trust. We’ve owned two vehicles with Fox aftermarket shocks that rode like you were sailing on a cloud. Our experience with Polaris service and products have been nothing short of stellar. For those reasons, they’re investment options that will be highly considered in our portfolio.
Currently, a share of Polaris stock sells in the $113.00 range, and has had a steady increase over the past year as the economic recovery drives increased sales of off road vehicles. Arctic Cat, conversely, is selling in the $56.00 range and after a dip in late 2012 has also shown a steady rebound since the first of the year. People are getting some stability back, it seems, and going back to dealers for toys – a trend that plain dropped off during the recession.
So whether you’re a seasoned investor, or someone just looking to wisely save and (hopefully) grow a nest egg of any size, looking into off publicly traded off road companies may be a fun option for diversifying. Not to mention, I always feel like I’d rather work my money with companies that believe in getting dirty rather than all those stiffs in ties.