TRG | The Bottom Line – 2/26

A year ago this week, TRG took its last non-deal road show/marketing trip to NYC and Boston, and within two weeks, we penned our first COVID investing idea thought piece, “RV Industry Update: How One Big Global Dumpster Fire Could Be A Buying Opportunity.” In the face of widespread Wall Street doubts, the RV space rocketed (along with RV-related stocks) on a meaningful increase in demand throughout the global pandemic and ensuing lockdown and widespread social distancing. Today, many RV dealers share that they have very low inventories and have pre-sold units, a trend they see continuing throughout 2021. Against that backdrop, we ponder about the ripple effects of re-opening and the reality that first-time RVers just may revert back to a “cushier” lifestyle (think room service and fuzzy slippers). While still in the early stages, we are finding more examples of COVID-RV purchases hitting the market, with consumers feedback ranging from “bought new in September and went on one 11 mile trip” to “Brand new, has been on two short trips.”