Although the boating industry hit rough waters in 2006, analysts are confident that there's nothing but smooth sailing ahead. A number of factors, such as the recent dip in oil prices, a successful industry led "Discover Boating" public awareness campaign, and relatively steady economic growth are expected to facilitate increased industry sales over the next 3- 5 years.

Supporting our opinion that the industry is poised for steady growth, recent research conducted by E- Composites predicts that the global demand for recreational boats will increase from $23.7 billion in 2005 to approximately $33 billion in annual sales by 2010, representing an annual growth rate of 7%, or compound 5 year growth of 39.24%.

With this year's boating season only months away, we feel that a significant opportunity exists for emerging boating suppliers equipped with competitive products and solid distribution channels. One company that fits this description is Challenger Powerboats Inc. (OTCBB: CPWB).

In just a few short months, CPWB has emerged from a niche player into an emerging star in the recreational boating industry, which netted $37 billion worth of sales and services in 2005. If Challenger had not yet established itself without a doubt as a top player in the highest tier of the high performance market, today's news assures that it has.

Challenger announced today that not only has its DDC-33 been profiled in the March '07 edition of "Powerboat Magazine", but in addition, the testing was an enormous success. According to the company, the results exhibit the fact that Challenger's products are a viable, cost-effective competitor amongst a number of well-established, multi-billion dollar competitors.

Labels: Challenger, CPWB, Powerboats