Mr Lifted Trucks

 I do not own FOX stock. Offloading SCA Group I expect FOX to sell off their SCA Group and retain the Tuscany upfit brand within the next 18 months, and here's why.  During the four years FOX has acquired the group, the auto market has experienced well-reported massive swings in their business during and immediately post-COVID.  With things returning to "normal" regarding inventory levels, the glaring problem with the new lifted truck market is now visible to everyone.  That is the obscurity problem; no one knows the market exists, even though new lifted trucks have existed for over a decade.  As I mentioned in a previous blog post , FOX's acquisition of the SCA Group was a lousy investment.  With the current aged new lifted truck inventory and dealer contraction with stocking new lifted trucks, FOX faces massive headwinds in the truck upfit segment.  It makes no sense for them to continue to operate multiple upfit brands that carry large overhead...

 I do not own FOX Factory stock. FOX Factory Holding Corp. held its Q4 Earnings call on February 22, 2024, at 4:30 PM. I am focusing on FOX CEO Mike Dennison's two comments during that call. “And then in AAG, again, fantastic growth over the last couple of years with the upfit business. I mean, it was 40% for two years back-to-back. And so that growth is fantastic in the upfit business. But this year, definitely slower just because we’re not getting the right chassis. We’re not getting enough chassis. And then you have dealer floor plan financing just really inhibiting dealers from taking more risk and putting the product on their lot. And so that’s having a pretty significant influence on us, and quite frankly from a margin standpoint as well.” The upfit growth was an anomaly driven by dealers' inventory situation post-COVID. If you recall, dealers could not keep trucks on their lots, so they contacted upfitters and snatched up any available chassis they had. The consume...