Vail (MTN), Arctic Cat (ACAT), Polaris (PII) Shares Lower as Traders Play Dryer, Warmer Winter
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Price: $152.81 +1.72%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 4%
Revenue Growth %: +1.6%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 4%
Revenue Growth %: +1.6%
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Despite earlier forecasts for "another brutal winter" this year, the U.S. as a whole has been experiencing a seasonally warm 2011. A lack of precipitation has certainly added to the season's unusual climate. This winter comes in stark contrast to last year when record levels of snowfall were seen in a number of areas around the nation.
While some companies within the shipping and transportation, airlines, and insurance industries may be happy with the current weather conditions, ski resorts, snowplow manufactures, and snowmobile producers are not.
Through December, the base of Squaw Valley, a popular resort in northern California, has only received 12 inches of snow, substantially below the 163 inches of snowfall over the same period last year. Managers at the Freeride Snowboard Shop in the Squaw Valley Village told the WSJ sales were down 20 percent over last year due to the lack of snow.
Elsewhere, snowpack in Colorado is currently down roughly 25 percent from its average.
Traders are playing the news Tuesday: shares of Vail Resorts (NYSE: MTN) are down 5.6 percent, shares of Arctic Cat (Nasdaq: ACAT) are down nearly 4 percent and shares of Polaris (NYSE: PII) are down about 2 percent.
On the other side of the trade, water distribution and part manufacturers are benefiting as investors may be betting the dry winter may signal a dry spring or summer in 2012. Shares of Watts Water Tech. (NYSE: WTS) are trading up 3.6 percent on the day, shares of Waters Corp. (NYSE: WAT) are up 2.7 percent, and shares of Mueller Water (NYSE: MWA) are up 2.9 percent.
While some companies within the shipping and transportation, airlines, and insurance industries may be happy with the current weather conditions, ski resorts, snowplow manufactures, and snowmobile producers are not.
Through December, the base of Squaw Valley, a popular resort in northern California, has only received 12 inches of snow, substantially below the 163 inches of snowfall over the same period last year. Managers at the Freeride Snowboard Shop in the Squaw Valley Village told the WSJ sales were down 20 percent over last year due to the lack of snow.
Elsewhere, snowpack in Colorado is currently down roughly 25 percent from its average.
Traders are playing the news Tuesday: shares of Vail Resorts (NYSE: MTN) are down 5.6 percent, shares of Arctic Cat (Nasdaq: ACAT) are down nearly 4 percent and shares of Polaris (NYSE: PII) are down about 2 percent.
On the other side of the trade, water distribution and part manufacturers are benefiting as investors may be betting the dry winter may signal a dry spring or summer in 2012. Shares of Watts Water Tech. (NYSE: WTS) are trading up 3.6 percent on the day, shares of Waters Corp. (NYSE: WAT) are up 2.7 percent, and shares of Mueller Water (NYSE: MWA) are up 2.9 percent.
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