In this segment from the Motley Fool Money show, the castshares the various companies they have their eyes on in December, including National Beverage(NASDAQ: FIZZ), Thor Industries(NYSE: THO), and Idexx Laboratories(NASDAQ: IDXX).
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A full transcript follows the video.
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This podcast was recorded on Dec. 2, 2016.
Chris Hill:All right. David Kretzmann, you're up first. What are you looking at this week?
David Kretzmann: I'm looking at National Beverage, ticker FIZZ. This is the beverage company behind soft drink brands like Shasta and Faygo, little offbeat brands. Then, they're also rapidly growing in the sparkling water category with its LaCroix brands. The sales are up 14% and net income up 60% in the latest quarter. Company has really bizarre press releases, so the CEO Nick Caporella, in the latest press release, he says "The company is in the cockpit of innovation with a yoke in our hands." That's National Beverage.
Hill: I'm speechless. Steve wants everybody to know that he's a hobby pilot. Doesn't he?
Kretzmann: I guess.
Hill: Steve, question about National Beverage?
Steve Broido: What is the difference between Crush and Fanta?
Kretzmann: Man, I have no ... That's over my pay grade, Steve. You have to go somewhere else.
Seth Jayson: One teaspoon of sugar. That LaCroix water thing, this was on my radar a year or so ago. It's baffling to me because I grew up in northern Minnesota and that was the spring water before everybody was drinking spring water, we have it at the cabin and it was just what you got at the Piggly Wiggly with your Old Dutch potato chips. Suddenly, everyone tells me this is popular. Yeah, it's like finding out that your high school is the favorite high school of the United States or something.
Hill: Seth Jayson, what are you looking at this week?
Jayson: Geez, almost everything in the RV business it looks like. We have Thor Industries reported recently that their sales were, well, they were up huge, but they had just purchased Jayco. They're still growing trailer and RV sales in the neighborhood of somewhere in the low 20% range, high teens and they're getting huge bookings and a lot of this was lower priced small RVs so the Martins are changing a little bit. On the other hand, people seem to be buying a ton of RVs and I think they're going to keep buying a ton of RVs for the next couple few years.
Hill: The ticker?
Jayson: Thor Industries is THO.
Broido:Where does recurring revenue come from with an RV company?
Jayson: Recurring revenue is harder to come by for somebody who makes the RVs themselves. If you want recurring revenue in the RV industry, you need to look at Drew Industries, which makes aftermarket parts as well as original equipment parts.
Hill: Simon Erickson, what are you looking at?
Simon Erickson: Chris, I'm going with Idexx Laboratories, ticker is IDXX. They are the world's largest manufacturer of tests and services for the veterinarian market. Needless to say, I think this is the top dog in the space ...
Hill: Awww ...
Erickson: They control nearly 40% market share -- sorry about that everyone -- in the companion animal market. Because they've got these established relationships with the vets already, about 87% of revenue is recurring in nature. Really like to see that for a business.
Broido: Who really pays for this? Is it the consumer? Is it the vet? Who's paying for this stuff?
Erickson: Largely the consumer right now, Steve, but we are starting to see veterinary insurance picking up as a trend in recent years.
Hill: Steve, you got a stock you like?
Broido: I want to go RVing with Seth Jayson.
Hill: I want a video of your adventure.
Jayson: That would be a great trip.
Broido: Road trip. Road trip.
Jayson: Steve, let's ditch the kids and do this.
Hill: All right. That's going to do it for this week's addition of Motley Fool Money. Thanks for listening. We'll see you next week.
Chris Hill has no position in any stocks mentioned. David Kretzmann has no position in any stocks mentioned. Seth Jayson owns shares of Drew Industries. Simon Erickson has no position in any stocks mentioned. Steve Broido has no position in any stocks mentioned. The Motley Fool recommends Drew Industries, Idexx Laboratories, and Thor Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.