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Big company, small town: Winnebago Industries, Forest City, Iowa

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

Ever taken a road trip in an RV? If you have, there is a good chance that you were inside a Winnebago recreational vehicle. The name Winnebago has been synonymous with the large RV for as long as I can remember. With such a rich history, one would think Winnebago is located somewhere next a major interstate corridor or airport. Otherwise, how would it receive in its raw materials and ship out its finished product?

Winnebago Industries, Inc. (NYSE: WGO) is actually based in Forest City, Iowa, founded in 1958 in Winnebago County (that's where the company's name comes from). From its inception, the company has been involved with travel trailers. It used names from Native American tribes to name its different lines of trailers, and in the 1970s and early 1980s, made smaller trailers as gas prices spiked upward. In fact, come this summer, one of Winnebago's manufacturing plants in Charles City, Iowa, will be closed due to drastic changes in Winnebago's market due to higher gas prices and declining demand. The company has already laid off 200 employees from its headquarters in Forest City.

Unlike many American companies these days, Winnebago still makes the majority of its products in the United States, most of which are built on top of chassis units made by Ford or Chevy. The term Winnebago has made itself, after more then 40 years, into a brand name completely associated with RVs and trailers. Do you blow your nose with a Kleenex or tissue? Drink Coke or a soft drink? Go on vacation in a Winnebago or travel trailer? There's the brand power the company continues to have today, even with the hard times its experiencing.

Be sure to check out more Big Company, Small Town posts.

Analyst initiations: IPCM, FCE.A and SINA

MOST NOTEWORTHY: IPC The Hospitalist Co, Forest City Enterprises and SINA Corp were today's noteworthy initiations:
  • Jefferies believes IPC The Hospitalist Co (NASDAQ: IPCM) is well-positioned to grow rapidly in the next several years, as it takes advantage of numerous organic and acquisition-driven expansion opportunities in the emerging hospitalist sector. The firm started shares with a Buy rating and $27 target.
  • Forest City Enterprises (NYSE: FCE.A) was initiated with an Outperform rating and $47 target at Keefe Bruyette, as they find shares attractively-valued at current levels.
  • Sterne Agee initiated SINA Corp (NASDAQ: SINA) with a Buy citing checks that indicate trends for online advertising in China remain very favorable and support a strong growth outlook.
OTHER INITIATIONS:
  • Credit Suisse initiated CBS Corp (NYSE: CBS) with a Neutral rating and $25 target and Alcoa (AA) with an Outperform and $45 target.
  • Oracle (NYSE: ORCL) was reinstated with a Buy rating and $24 target at Goldman Sachs.

Symbol Lookup
IndexesChangePrice
DJIA-126.9710,337.43
NASDAQ-26.642,149.41
S&P 500-14.991,095.64

Last updated: November 27, 2009: 11:53 AM

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