although i currently own shares in JOUT primarily for fundamental reasons, i also believe that the stock is poised for a potentially lucrative long-term trade and as such, i am adding JOUT as both a trade set-up (Long Set-ups category) as well as a investment idea (Long-Term Trades category). the quick fundamental story behind this one:
a little over a year ago, i became aware of a unique technology that JOUT pioneered in the civilian sonar industry (with their Humminbird marine electronics division); side scanning sonar for fish-finders. this is the same type of technology that was used to discover the wreck of the titanic. as an avid saltwater fisherman, i immediately purchased one of these units and can tell you that it is truly a game-changer in the multi-billion dollar recreational fishing industry. i won’t bore you with all the details but what excites me even more is Humminbird’s new adaption of that technology, a 360 degree scanning sonar which you can click here to see on the Humminbird website.
that new 360 imaging unit will begin selling in september. even if sales this unit are not as successful as i believe they will be, JOUT is extremely undervalued and unlike many “undervalued” companies, JOUT is not a one-trick pony, as they have a broadly diversified product line with many household known brands such as Minn Kota trolling motors, Scuba-Pro dive equipment, Ocean Kayak & Old Town canoes & kayaks, Eureka tents, and many more. here’s a link to yahoo finance with listing of the valuation metrics as well as links to some recent articles on the company.
keep in mind, story stocks are a dime a dozen so as always, DYODD and remember: technicals first, fundamentals second. the position that i have in JOUT is relatively small as i’m waiting for a break above this weekly resistance line (also shown on this daily chart below) for a break-out of that multi-year base, ideally on above average volume (150%+). this is a relatively low volume stock so keep your position size commensurate with your risk tolerance if you decide to take it. targets TBD, daily & weekly charts below:
