Friday, June 27, 2008

Bicycle Riding a Secular Trend To Profit

From Minyanville:
There are very few bike-specific companies out there and none that would make for a really liquid trading vehicle. Likewise, there's nothing of note in the retail or service spaces, as most bikes tend to be sold by large retailers for which they represent only a small piece of the business.

In keeping with my general preference for buying monopoly suppliers rather than the final producers -- think Intel (INTC) versus any PC maker -- my pick in the bicycle space would have to be Shimano Inc., which trades on the Toronto Stock Exchange (7309-TSE), as well as on the pink sheets (SHMDF) in the U.S. The stock made a big move February through April and has been marking time since then. A bit of a penant formation to my relatively untrained eye....MORE