Supreme Industries, Inc.

• Is Playing a Cyclical Upturn Safe?

  By William Bias - August 27, 2012 | Tickers: OSK, STS, THO, WGO

  Thor Industries, Inc. (NYSE: THO) is a company that sells RVs, buses, and ambulances. It has experienced a run up of 13% over the past month (see stock price chart below). The reason for this run up is probably because investors are finally recognizing the improving fundamentals of this company since the last recession. Revenue has grown 35% per annum between 2009 and 2011. Revenue has grown 11% for nine months ending Apr. 30. Free cash flow grew 34% per annum between 2009 and 2011. It was cash flow positive for nine months ending Apr. 30 whereas it was cash flow negative this time last year. However there are four reasons why I think buying the stock of this company is not a good idea.