Hi Steven,HDI looks like a very good business from the numbers you present. I'venever looked into them so have no comments about their financials, etc.A documentary I saw on TV, about development of a new motorcycle model,suggested a fair bit of depth to their design people and management,and many of them showed pride in their products and their business.Honda used to be more of a motorcycle firm. Also true of Suzuki maybe?The potential for HDI is not necessarily limited by motorcycle buyers.Especially with emphasis on fuel economy, and people looking forvehicles which have efficient engines but still enough power to haulthe shopping.One of the things I like to do, in the abstract anyway, is find a firmwhich is in a good line of business, with reasonable future for demand,and which has a management which has the right attitudes - emphasis onbeing rational, profitable, sustainable, continuous improvement in thebusiness operations and re costs, and is honest towards shareholders.Then trust the management to make good decisions about the details andto safeguard my fractional interest in the retained earnings and otherbenefits from being part-owner of that business. It is impossible to beas up to date on the monthly financials and sales prospects, or otheropportunities which arise, as the people who are day to day managers.One I recently bought into a bit more was Norbord (NBD on TSX - don'tknow if they are also NYSE) who make oriented strand board. They seemto have a good appreciation of how to balance cash generation with theneed to keep up on business opportunities. Right now may be a cyclicpeak, but I'm willing to trust those guys to do their best to maintainthe present dividend and deploy excess cash productively or return it.The stock has dropped the past two days because it went ex-dividendon a special dividend. Personally I would rather buy ex-dividend andavoid paying income tax to retrieve my original investment capital.I forgot to list my little GRY experiment in the financials I have inthe portfolio. A small thing anyway. Not unrelated to Norbord maybe.I agree with you about the possible opportunity to buy cheaper later.It seems to me that rather than waiting for a general discouragement,it makes more sense to wait for sectoral discouragement. That was thecase 3 years ago with telecomms, and it may be getting that way withforestry products companies. Though I have still to get serious aboutAbitibi or Tembec. Those firms have the potential for big trouble,though their managements are capable and committed to the business.It is a time to be developing some familiarity with the candidates.But until some firms go under, it will not be real industry distress.And - back to trusting managements - the management of a competitorwith ample liquidity may be able to take advantage of an opportunitybetter than an individual investor.In the auto sector - getting back to HDI perhaps - I've arbitrarilyset a criterion of passenger car sales getting down to about 65 pctof prior peak, before there is sufficient distress to produce plentyof bargains. But there can be selected good firms that are beingunderpriced, tarred with the same brush as the rest of their industry,even now. I think I've found one of those, but it may sell for lessin future. A smallcap and I don't want to pump it, so no name here.But that, for instance, may be the same argument as justifies HDIeven if consumer buying outlook is getting weak and most investorsare shying away from the related stocks.Back in 1999-ish, I looked seriously into Winnebago, but never tookaction. An error in retrospect. It was clear they were doing thingsright and management could be trusted to run the business properly,and the valuation vs price was advantageous. HDI (without any workdone personally looking into the details) may be a similar situation.So... Good luck!Woodstove
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