MarineMax (HZO) was originally selected as a Danger Zone Idea on 10/27/14. At the time of the initial report, the stock received a Very Unattractive rating. Our short thesis noted the firm’s misleading reported profits, costly inventory management, and a sky-high valuation.
During the nearly five-year holding period, HZO outperformed as a short position, declining 16%, compared to a 49% gain for the S&P 500.
Since our original report, HZO has bounced around, rising as high as $27/share in early 2015 and falling as low as $14/share on multiple occasions. Recently,