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I'm making my first attempt at using the RuleMaker Anaysis Excel Spreadsheet, and I chose BGG for my test. However, I am having trouble coming up with candidates for competition. Does anyone have any suggestions?



FoolRM,

Here's some data I found from the Briggs and Stratton 10-K in regards to their direct competition:


The small gasoline engine industry is highly competitive. The Company's major domestic competitors in engine manufacturing are Tecumseh Products Company, Honda Motor Co., Ltd., Kohler Co. and Kawasaki Heavy Industries, Ltd. Also, two
domestic lawn mower manufacturers, Toro Co. under its Lawn-Boy brand, and Honda, manufacture their own engines. Eight Japanese small engine manufacturers, of which Honda and Kawasaki are the largest, compete directly with the Company in world markets in the sale of engines and indirectly through their sale of end products that compete with the end products produced by the Company's customers. Tecumseh Europa S.p.A., located in Italy, is a major competitor in Europe.


I'm not sure how many of the companies listed above are public, but that should be a good start. I know Tecumseh Products trades under the symbol TECUB, for what its worth.


I have noticed, however, that their seems to be a huge seasonality to the Cash and Equivalents on their balance sheet (not surprising, really). In such instances, would it be more Foolish to look at a 6 month or 1 year period instead of a quarter?


Ah ... good question. This is something that I often wondered about as well. I usually try and use the largest sample of data available, as long as it is consistent between the base company and the three competitors. For example, I wouldn't mix quarterly data from one company with yearly data from another. My feeling is that using a larger sample helps to eliminate any bizarre results that could be caused because of one bad quarter. On the flip side, however, is that one bad quarter may be the hint that things are going sour for your company, and using a large sample size may end up masking that fact.

Hope this helps in doing your research.

the LanceMan
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