Jimmy, whilst I don't completely disagree with some of your sentiments, I don't think your assessment of ARB's domestic market is completely correct. It is true that SUV sales have kept growing at rates that cannot possibly continue indefinitely. However, the bulk of this segment is not ARB's target market. The most significant segment for ARB is 4WD utes. Sales here have actually been flat, or somewhat in decline, in recent years. This no doubt is related to the reversal of the mining boom. I had actually thought (hoped) this might have impacted ARB's sales more significantly, and thus perhaps the share price, as I wanted to increase my stake. But alas, nothing seems to be able to stop ARB!
The other significant segment is large 4WD's, for real 4WD enthusiasts (not Toorak tractors). These are a much smaller segment than your overall SUV segment, and have not been growing at anywhere near the same pace. Something to keep in mind, is perhaps that if an enthusiasts chooses to save his/her pennies by nit buying a new 4WD, he may still buy a used 4WD, or he may simply console himself by fitting his existing vehicle wity new gear. Perhaps...
ARB Price at posting:
$16.01 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)