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Cavco Industries Woes Mount, Official, Unofficial Insights, Broader Manufactured Home Industry Impacts?

February 14th, 2019 No comments

 

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Thank you. And before we begin, please be advised that comments made during this conference call by management will contain forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations or assumptions about Cavco’s financial and operational performance, revenues, earnings per share, cash flow or use, cost savings and operational efficiencies,” said Mark Fusler, Director of Financial Reporting for Cavco Industries (CVCO), per the Motley Fool’s official earnings call transcript.

 

Some factors that may affect the company’s results include, but are not limited to the risk of litigation or regulatory action arising from the subpoenas we received from the SEC, the risk of potential litigation or regulatory action arising from the SEC related internal investigation and its findings, potential reputational damage that Cavco may suffer as a result of matters under investigation, adverse industry condition, our involvement in vertically integrated lines of business, including manufactured housing, consumer finance, commercial finance and insurance, market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing,” said Fusler for Cavco.

This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast Tuesday, February 5, 2019. Cavco undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the date of this conference call, except as required by law,” Fusler stated before turning the call over to Daniel L. Urness, President and Acting Chief Executive Officer of Cavco.

One could unpack those disclosures at great length and depth.

But what was not directly stated was that the number of shareholders plaintiffs’ attorneys doing “investigations” of Cavco and CVCO stock has mounted. It’s about a dozen known firms, to date – and while it is implied by Fusler – it is not bluntly stated.

Nor was it directly said that Cavco continues to take several preparatory moves, per legal sources, that make it clear that they expect a potentially protracted legal battle over the Stegmayer-SEC subpoena reported issue. That too may be construed as implied, but was not stated.

 

 

The Curious Case of Cavco and Joe Stegmayer?

There are communications that have been sent to MHProNews as news tips that have occurred since he stepped down as chairman and CEO of Cavco that some might interpret as Stegmayer exercising more leadership at Cavco than his current job title may imply.

The fact that Stegmayer is still Chairman of the Manufactured Housing Institute (MHI) Executive Committee ought to be of interest too.

 

CavcoIndustriesWikiPage2142019ManufacturedHousingIndustryDailyBusinessNewsMHProNews

Why? Several possible reasons, per sources that include, but may not by limited to the notion of “derivative liabilities.” We will explore that topic in an upcoming report.

But look again at this part of Fusler’s disclaimer statements: “...market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing…”

Which of those plaintiffs attorneys investigating Cavco have begun to uncover the various concerns about alleged market rigging or related that has been raised by MHProNews, MHLivingNews, MHARR and others? Which shareholders investigators have connected the relevant dots between Cavco, Clayton, and MHI?

Or who at the SEC is doing so?

How many of those shareholders attorneys or the SEC have had staff pouring over reports published here or elsewhere about Stegmayer, Cavco, Clayton, and MHI?

Without revealing sources and methods, it is common-sense to think that such research is the underway. If so, doesn’t that mean that Cavco’s legal bills and exposure will mount?

 

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But the market’s investors are apparently beginning to regain a measure of confidence in Cavco. They may – correctly or incorrectly – think the worst is over for CVCO, and that the stock is now “a value” in the Warren Buffett sense of the term.

 

 

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The storm brewing over Cavco could disrupt more than what some in MHVille, the investment community – or even in Phoenix, Knoxville, and Arlington –  may currently believe. MHProNews will do follow up reports that will continue to unpack what is occurring in the developing case.

 

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Until the next report, note as a disclosure that MHProNews’ management holds no position in any tracked stock in our evening markets report, nor plans to open a position in the next few days.  Some prior reports can be accessed from the text/image box below.

 

What’s Coming at Cavco Industries (CVCO), Plus Manufactured Housing Industry Stock Updates

 

But we are keenly interested. As the #1 read, and pro-sustainable growth manufactured housing trade media, plus consulting, and professional services provider, we wonder aloud why certain steps have not yet occurred at MHI, their member companies, including Cavco, Clayton, 21st Mortgage and others haven’t already occurred?

Stay tuned, because more is almost guaranteed to be revealed. And if so, will it once more send shock waves though Cavco, or others?  “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Independent National Manufactured Housing Post-Production Association Takes Major Step

President Trump Announces Nominee Dr. Mark Calabria to Become New Director of Federal Housing Finance Agency

MHARR Calls on HUD To Remove Zoning, Placement and Consumer Financing Barriers to Manufactured Homes

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“Washington Post Article Underscores Clear Need for An Independent Post-Production Association”

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

 

 

 

 

 

 

 

Cavco Industries (CVCO) Officials Issue Several Warnings

February 6th, 2019 Comments off

 

CavcoIndustriesCVCOOfficialsIssueSeveralWarningsDailyBusinessNewsMHProNews

This report will blend three elements. One is a release to the Daily Business News on MHProNews from Cavco Industries.  Two, are select graphics and commentary. But we will begin with the following exclusive.

 

An attorney spoke off-the-record to MHProNews  one who has been tracking the drama at Cavco – said the following about Cavco’s official statements.

The second half of this, beginning with “adverse industry conditions,” is boiler plate that they’ve used before, said that attorney who is tracking developments at Cavco. “The first part is more significant.  They also note somewhere that they’ve increased their D&O (directors and officers) liability insurance coverage, which means that they’re expecting possible claims arising out of or related to the SEC matter.” 

Put in non-legalize, there is incoming fire, as the related reports linked further below the byline and notices exclusively have reflected. 

With that introduction, in a report dated 2.4, 2019, – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the third fiscal quarter ended December 29, 2018.

CavcoIndustriesCVZCO2009to2018ManufacturedHousingIndsutryDailyBusinesNewsMHProNews

 

Financial highlights include the following:

  • “Net revenue for the third quarter of fiscal year 2019 was $233.7 million, up 5.6% from $221.4 million for the third quarter of fiscal year 2018. The increase was primarily from higher home selling prices as a result of input cost inflation and modestly larger home sizes. Net revenue for the first nine months of fiscal 2019 was $721.6 million, a 14.8% increase from $628.7 million in the same period last year. Net revenue for the three and nine months ended December 29, 2018 includes subcontracted pass-through services of $5.9 million and $18.7 million, respectively, which are now recognized on a gross basis rather than net of associated costs.”

 

  • Income before income taxes was $16.9 million for the third quarter of fiscal year 2019, a 28.7% decrease from $23.7 million in the comparable quarter last year. The current quarter’s results were impacted by the following events:”

 

FocusedTransformationCavcoJan2019InvestorIRPresentationDailyBusinessNewsMHPronewsThirdAveValueFundInsiderTrading

The following bullets are direct quotes, from Cavco’s release.  The graphics are from Cavco, as shown, but where not part of their press release.

 

  • The Company recorded unrealized losses of $2.1 million on corporate equity investments in Other income, net. This is the result of implementation this fiscal year of new accounting standards that require unrealized gains and losses on equity instruments to be reported on the Consolidated Statement of Comprehensive Income. In previous fiscal years, these amounts were recorded on the Consolidated Balance Sheet in the Accumulated other comprehensive income line;

 

  • Selling, general and administrative expenses included $1.3 million for legal and other expenses related to the Company’s internal investigation and response to the Securities and Exchange Commission (“SEC”) inquiry and $0.7 million of expense related to the purchase of additional Director and Officer (“D&O”) insurance, as described further below; and

 

  • Financial services results were adversely impacted by a severe hailstorm in Arizona, which resulted in increased homeowners’ insurance claims for the period. The Company’s insurance subsidiary maintains reinsurance for loss events that exceed $1.5 million, which served to limit the losses realized this quarter. The prior year quarter experienced unusually low claims volume as policy coverage areas did not have any significant weather-related events.

 

  • Further increasing the adverse quarterly comparison, income before income taxes for the prior year third fiscal quarter benefited from a $3.4 million favorable dispute settlement resolution and the production of a limited number of disaster-relief units for the Federal Emergency Management Agency.

 

Here’s what the legal beagles and shareholder’s plaintiffs attorneys are watching.

 

As a result of the ongoing independent investigation, the Company recorded $1.3 million related to legal and other expenses during the third fiscal quarter and expects to continue to incur related costs pertaining to this matter over the next several quarters. During the quarter, the Company also reviewed the sufficiency of its insurance coverage and as a result of this review, Cavco’s Board of Directors made a decision to purchase additional D&O insurance coverage. These new 22 month policies were implemented December 21, 2018. Total premiums paid for these policies were $15.3 million, of which $5.4 million was paid in the third fiscal quarter. As a result, the Company recorded $0.7 million of additional D&O policy premium expense during the third fiscal quarter, and expects to incur approximately $2.1 million per quarter in Selling, general and administrative expense from the amortization of these policy premiums through the second quarter of fiscal year 2021. Any additional adjustments are expected to be in the normal course of maintaining adequate D&O insurance for the Company.”

 

Jan2019ManufacturedHomesShipmentsPercentageOfNewsSingleFamilyHomeSalesCavcoIRpresentationDailyBusinessNewsMHProNews

 

Last night’s closing numbers, are linked here.  Note that none of MHProNews’ management have taken any position in any tracked stock.

 

CavcoIndustriesJan2019ManufacturedHousingIndsutryProfileDailyBusinessNewsMHProNews

 

A key pull quote from a call transcript, per Seeking Alpha:

 

Some factors that may affect the company’s results include, but are not limited to, the risk of litigation or regulatory action arising from the subpoenas we received from the SEC, the risk of potential litigation or regulatory action arising from the SEC related internal investigation and its findings, potential reputational damage that Cavco may suffer as a result of matters under investigation, adverse industry conditions, our involvement in vertically integrated lines of business, including manufactured housing, consumer finance, commercial finance and insurance, market forces and housing demand fluctuations, our business and operations begin concentrated in certain geographical regions, loss of any of our executive officers, federal government shutdowns and extensive regulation affecting manufactured housing.”

 

So between the attorney that spoke off-the-record to MHProNews, and Cavco’s own official statements, there are sound reasons to believe that legal tussles lie ahead.

Their full release is linked here.

 

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MHProNews plans a more detailed dive into Cavco in the days ahead.  Stay tuned.

That’s this morning’s look at “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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Cavco Industries (CVCO) Class Action Suit

 

Cavco Industries New Board Member, Susan L. Blount – Corporate, Manufactured Home Industry Insights on Pick, Timing

Manufactured Home Production Slide Continues – Call it Corruption, Collusion, Incompetence, Attempted Coverup – Self-Evident Failures Mount

 

Insider Trades, New Cavco Industries Investigation, Selling – Plus More Manufactured Housing Stock Updates

Hedge Fund’s Cavco Move, and More from Inside MHVille

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

 

 

 

 

 

 

Cavco Industries New Board Member, Susan L. Blount – Corporate, Manufactured Home Industry Insights on Pick, Timing

January 29th, 2019 Comments off

CavcoIndustriesLogoCVCOlogoNewBoardMemberSusanLBlountPhotoManufacturedHomeIndustryInsightsPickTimingDailyBusinessNewsMHProNews

Cavco Industries (CVCO) has provided a recent release to the Daily Business News on MHProNews, regarding the announced selection of Susan L. Blount to the troubled firm’s Board Of Directors.

 

We’ve held that release for reasons that yesterday’s report on Cavco make clear. Before turning to portions of the Cavco release, industry sources tell MHProNews what this move represents.

Blunt on the Cavco Board of Directors is “…meant to inspire confidence both now and going forward…” for the Securities and Exchange Commission (SEC), plus the firm’s current and prospective shareholders.

Sources also say that this move to bring Blount on board is meant to blunt prospective plaintiffs attorneys too. Cavco, per sources, have engaged in several moves designed to prepare the firm for the legal battles that are expected.  For more on those legal issues, see the related reports, further below.

 

Here are some quotes from Cavco’s release to MHProNews, following the composite screen capture from LinkedIn.

 

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Cavco Industries Appoints Susan L. Blount to Board Of Directors

Former EVP and General Counsel of Prudential Financial Inc. will Bolster the Board’s Financial Services, Governance and Insurance Expertise

Cavco Industries, Inc. (NASDAQ: CVCO)…announced that its Board of Directors (“Board”) appointed Susan L. Blount as an independent director of the Company’s Board. Ms. Blount, an experienced financial services executive, retired as Executive Vice President and General Counsel of Prudential Financial, Inc. in 2015, having served as General Counsel since 2005.

Ms. Blount’s appointment fills the vacancy on Cavco’s Board and brings its current membership to five directors, all of whom are independent. She will be a member of the Company’s Corporate Governance and Nominating Committee and the Company’s Compensation Committee.

We are extremely pleased to welcome Susan Blount to our Board,” commented William Boor, non-executive Chairman of the Board of Cavco. “Susan’s accomplishments speak for themselves. She has significant and very relevant experience in strategy, corporate governance, risk and compliance in both the public and private sectors.”

Mr. Boor continued, “Susan’s addition reflects our commitment to enhance the Board’s capabilities and diversity. We look forward to getting the benefit of her insights, judgment and counsel, and we are confident that Susan will make a meaningful and very positive impact on our Company’s future success.”

I am excited to join and begin to work with the Cavco Board as we move into 2019,” said Ms. Blount. “Cavco fills an important role in the US housing market and the Company has impressed me with its strong commitment to governance and focus on superior stockholder returns.”

Ms. Blount is an outstanding addition to our Board,” added Daniel Urness, President and Acting Chief Executive Officer of Cavco. “Her public company and diverse corporate management experience will offer fresh perspectives and oversight to help our leadership team enhance long-term shareholder value.”

Susan L. Blount

From 2005 to 2015, Susan Blount served as General Counsel of Prudential Financial, Inc. (Prudential), a leading provider of insurance, retirement and asset management products and services. In that role, Ms. Blount led the company’s global law, compliance, business ethics and external affairs organization. During that time, Ms. Blount was a member of key senior management committees including the Office of the Chairman Group, the Enterprise Risk Committee and the Capital and Financial Controls Committee. Ms. Blount joined Prudential in 1985 as a staff attorney in the company’s commercial real estate organization. Before being appointed General Counsel, she held various positions of increasing responsibility, including Chief Investment Counsel, Vice President and Corporate Secretary, and Associate General Counsel and Head of Shareholder Service. Prior to joining Prudential, Ms. Blount was an Associate at Kirkland & Ellis.

In 2017, Ms. Blount was an Advanced Leadership Initiative Fellow at Harvard University. Since 2016, she has taught as an adjunct professor at the University of Texas School of Law. Ms. Blount is active in professional and community service. She currently serves on the University of Texas Law School Foundation, the Executive Committee of the Center for Women in Law and the Nantucket Historical Association. Ms. Blount has also served on the Boards of organizations such as Montclair State University, the Leadership Council for Legal Diversity, the Association of Corporate Counsel and the New Jersey Law and Education Empowerment Project. She has also been a faculty member at Stanford University’s annual Directors’ College and a participant in Stanford’s Institutional Investors Forum.

Ms. Blount graduated from The University of Texas at Austin with a bachelor’s degree in history and a juris doctor with honors.

About Cavco Industries, Inc.

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. The Company is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle and Lexington Homes.

The Company is also a leading producer of park model RVs, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco’s mortgage subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer, a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

— end of quoted section of Cavco release —

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Cavco Industries (CVCO) Class Action Suit

Insider Trades, New Cavco Industries Investigation, Selling – Plus More Manufactured Housing Stock Updates

Hedge Fund’s Cavco Move, and More from Inside MHVille

 

Manufactured Home Production Decline Accelerates in November 2018

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

 

Cavco Industries (CVCO) Class Action Suit

January 28th, 2019 Comments off

 

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The draft of the pending class action suit against Cavco Industries (CVCO) is the result of a news tip to the Daily Business News on MHProNews.

 

As regular MHProNews readers know, there are numerous law firms circling Cavco.  This report will review some key claims of the Howard G. Smith lawfirm’s attorneys, acting on behalf of CVCO shareholders in the pending suit.

Quoting from the attached draft, this report will start with – the Nature and Overview of the Plaintiffs Pending Complaint?

  1. This is a class action on behalf of persons and entities that acquired Cavco securities between August 6, 2018 and November 8, 2018, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

 

  1. On November 8, 2018, the Company revealed that it had received a subpoena from the SEC’s Division of Enforcement on August 20, 2018, requesting certain documents relating to trading in the stock of a public company, and that then-Chief Executive Officer Joseph Stegmayer had received a subpoena regarding similar issues on October 1, 2018.

 

  1. On this news, the Company’s share price fell $49.48 or over 23%, to close at $165.20 per share on November 9, 2018, on unusually heavy trading volume.

 

  1. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had agreed to refrain from trading the stock of public companies; (2) that, after such agreement, the Company’s CEO had engaged in the trading of the stock of public companies; (3) that such trading activities were reasonably likely to subject the Company to regulatory investigations; and (4) that, as a result of the foregoing, Defendants’ positive statements about 2 the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

 

  1. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.

 

CLASS ACTION ALLEGATIONS

“(1) that the Company [Cavco] had [previously] agreed to refrain from trading the stock of public companies;

 

(2) that, after such agreement, the Company’s CEO [Joe Stegmayer] had engaged in the trading of the stock of public companies;

 

(3) that such trading activities were reasonably likely to subject the Company to regulatory investigations; and

 

(4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

 

  1. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:

 

  1. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.”

 

 

Specific and Broader Take-Aways?

There are some voices in the industry’s legal community that indicate that the phrasing used above could potentially be used against some other publicly traded companies, specifically those associated with the Manufactured Housing Institute (MHI). If so, that in turn could mean MHI members who ignore the risks associated with the reports like the one linked here could be putting their shareholders at risk too.

Keep in mind that a contact at the Securities and Exchange Commissions (SEC) would neither confirm nor deny that Cavco is being investigated for possible market-rigging collusion in connection with Clayton Homes, a Berkshire Hathaway (BRK) subsidiary. Stegmayer was prior to going to Cavco, a Clayton division president. There have been persistent rumors among some HUD Code manufactured home independents and others that the move by Stegmayer to Cavco was part of a plan hatched at Clayton. But there is no documentation that has yet to be provided to MHProNews that supports such a claim. Why is that of interest?

Consider the second point from the plaintiff’s draft foundation.

Cavco purports to design and produce factory-built homes and to build park model RVs, vacation cabins and systems-built commercial structures.” Purports? Isn’t that the obvious thing that they are doing? Is the Howard G. Smith law-firm signaling that they have something more?

It should be noted that the Manufactured Housing Institute (MHI) has been characteristically mute on this developing issue. Stegmayer remains in place as the MHI Chairman.

Note too that some bloggers in the industry have attempted to white-wash the seriousness of this matter. There are those who believe that those cheerleading bloggers and ‘trade media’ are acting as a deliberate distraction mechanism from MHI and their puppet masters.

 

A contact at Cavco declined commenting about the specifics of the matter, saying to publisher L.A. ‘Tony’ Kovach “No comment sorryI appreciate the offer (to share a Cavco viewpoint). You are an honest man no matter what George [Allen] says…” It was an interesting comment, as doubtless many at the firm have been harmed, specifically if employees are also shareholders. It should be noted anew, given cheap shots from the galleries, that MHProNews follows the known facts, evidence, and the money.

The full draft legal document against Cavco is attached here.

There is speculation from a source that the draft was provided to MHProNews perhaps as a negotiation tool with Cavco, to use as leverage to quietly settle the case. MHProNews is not in a position to comment on the motivations, or lack thereof, of those who provide authentic news tips backed by evidence.

 

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There’s more on this evolving Cavco Industries (CVCO) and inter-related topic that MHProNews has obtained. In the days ahead, related reports will be published, possibly during the Louisville Show. Watch for it and sign up for the industry’s leading emailed headline news, found at the links below.

As a disclosure, MHProNews’ parent company management holds no position in any of the tracked stocks we include in our evening market report. Friday’s report is linked here. That’s MH “Industry News, Tips, and Views Pros Can Use” © where “We Provide, You Decide.” ## © (News, analysis, and commentary.)

 

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NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Insider Trades, New Cavco Industries Investigation, Selling – Plus More Manufactured Housing Stock Updates

 

Manufactured Home Production Decline Accelerates in November 2018

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

 

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

 

 

 

 

 

Cavco Shareholder Suits Prepping, CVCO, SEC, Insider Responses to Growing Scandal

November 15th, 2018 Comments off

 

CavcoShareholderSuitsPreppingCVCOSECInsiderResponsesGrowingScandalHolzerHolzerLawLogoKaseklaLawLogoCavcoLogo

Cavco and the Securities and Exchange Commission (SEC) have both responded to inquiries from the Daily Business News on MHProNews. Before turning to their comments, the larger news item is the start of the headline above. At least two law firms are calling on Cavco Industries (CVCO) shareholders to contact them, as they advance investigations that aim to sue-for-damages for wrongdoings by the publicly trade manufactured and modular home company.

 

The “Debacle” at Cavco

As a follow up to last night’s report, linked below, an insider with Cavco has called the developments at the Phoenix, AZ based firm a “debacle.”

Other sources at Cavco with knowledge have declined specific comments, perhaps knowing that the matter has already harmed the value of any shares that they personally hold.

 

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

 

Our report last night report last night included the following:

 

CVCOJoeStegmayerStockDropAfterSECCOnnectedShakeupManufacturedHousingIndustryDailyBusinessNewsMHproNews

 

Shareholder Alert” from 2 Law Firms

Their news release opened with, “SHAREHOLDER ALERT: Investigation of Cavco Announced by Holzer & Holzer, LLC

HolzerHolzerGoogleSummaryClassActionAttorneyDailyBusinessNewsMHProNews

It continued as follows:

Holzer & Holzer, LLC is investigating whether certain statements made by Cavco Industries, Inc. (“Cavco” or the “Company”) (NASDAQ: CVCO) complied with federal securities laws. On November 8, 2018, Cavco announced that an internal investigation had identified certain violations of the Company’s policy related to securities trading activities by former CEO, Joseph Stegmayer. The price of Cavco common stock fell significantly following this announcement.

If you purchased Cavco common stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq. at cholzer@holzerlaw.com or Marshall P. Dees, Esq. at mdees@holzerlaw.com, or by toll-free telephone at (888) 508-6832 to discuss your legal rights.”

 

HolzerHolzerAttorneyForInvestorsDailyBusinessNewsMHproNews

 

Another media release from a different law firm provided to MHProNews said the following.

 

KasekalaLawLLCLogoManufacturedHousingIndustryDaiyBusinessNewsMHProNews

All images and content are provided under fair use news media guidelines.

SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of Cavco Industries, Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm – CVCO

What follows is the body of their media statement.

Nov 14, 2018

Legal Newswire POWERED BY LAW.COM

RADNOR, Pa.,  — Kaskela Law LLC is investigating Cavco Industries, Inc. (NASDAQ: CVCO) (“Cavco” or the “Company”) on behalf of investors.  The investigation seeks to determine whether Cavco and certain of its officers and/or directors made false and/or misleading statements to investors, and whether Cavco investors have been harmed as a result.

Cavco investors with financial losses in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or via email at skaskela@kaskelalaw.com, to discuss this investigation and their legal rights and options.  Additional information about this investigation may also be found at http://kaskelalaw.com/case/cavco-industries-inc/

On November 8, 2018, Cavco disclosed that “on August 20, 2018, the Company received a subpoena from the SEC’s Division of Enforcement requesting certain documents relating to, among other items, trading in the stock of [a] Public Company.  On October 1, 2018, the SEC sent a subpoena for documents and testimony to former Chairman, President and Chief Executive Officer, Joseph Stegmayer regarding similar issues.  At this time, the Company believes that Mr. Stegmayer traded in certain publicly traded stock in his personal accounts as well as in accounts held by Cavco at a time when the Company had agreed to refrain from such trading. The Company intends to cooperate fully with the SEC’ s investigation.  Effective November 8, 2018, Mr. Stegmayer stepped down as Chairman, President and Chief Executive Officer of the Company after an internal investigation, conducted by independent legal counsel to the Audit Committee of the Board of Directors, identified certain violations of Company policy related to securities trading activities conducted by Mr. Stegmayer. The internal investigation remains ongoing.”  

Following this news, shares of the Company’s common stock declined $49.48 per share, or over 23%, to close on November 9, 2018 at $165.20 per share, on heavy trading volume. 

Cavco investors with financial losses in excess of $100,000, and individuals with information relevant to this investigation, are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 or via http://kaskelalaw.com/case/cavco-industries-inc/ Kaskela Law LLC exclusively represents investors in state and federal actions throughout the country.  For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.  This notice may constitute attorney advertising in certain jurisdictions.

URL : http://www.kaskelalaw.com

Contact Information:

Kaskela Law LLC

Seamus Kaskela, Esq.

201 King of Prussia Road

Suite 650

Radnor, PA 19087

(484) 258 – 1585

(888) 715 – 1740

skaskela@kaskelalaw.com

www.kaskelalaw.com

The Kaskela website says the following about the firm’s specialty and services.

Kaskela Law represents current and former shareholders of publicly traded corporations in securities fraud class actions, shareholder derivative actions, and merger & acquisition litigation. The firm exclusively litigates cases on behalf of investors on a contingency basis – advancing all costs and fees until the successful completion of a case.”

 

Cavco, SEC Responses to MHProNews Inquiries

Joe_Stegmayer_Cavco_credit_MHProNews

Joe Stegmayer.

What follows are the replies from media spokesmen for Cavco and the SEC.

They could be summed up as ‘polite, artful dodges,’ but we asked for an attorney to review those replies, which will follow further below, as they are insightful.

That outside attorney’s off-the-record responses are likely to be of wide interest to manufactured housing industry professionals, as well as to Cavco shareholders. As a disclosure, it should be noted that the principles of MHProNews hold no positions in that company.

Note that John Lovallo was the Cavco designated contact for this matter involving ex-chairman, Joe Stegmayer.

Lovallo was asked about the threat of litigation being raised by the law firms above. As of this time, no reply has come to that inquiry.

However, Lovallo did reply to prior inquiries by MHProNews, as follows.

First, the only public statement relating to the findings of the independent investigation and SEC subpoenas is included in the Company’s SEC filings and public disclosures.

The only additional public/on the record statement I can provide on the SEC matter is as follows:

“The Company is fully cooperating with the SEC’s investigation 

Related to your other comments our additional public/on the record statement is as follows:

“It is business as usual at the Company. Cavco continues to build quality, energy efficient homes for the modern-day home buyer, and team members are focused on providing customers and partners best in class service. 

Cavco is a strong Company and is strategically positioned to continue to be an industry leader under Dan Urness’s leadership. And, as reported last week, the Company’s fiscal second quarter 2019 financial results were strong. 

Mr. Urness and his team are focused on continuing to execute. The Board of Directors fully supports Cavco’s current strategy and is confident that Dan Urness is the right person to build on the Company’s success.” 

You can attribute the above statements to John Lovallo spokesperson for Cavco Industries.”

 

A follow up questions that asked which stock(s) were involved brought a polite, prompt reference back to the previous statement.

Per Lavollo, “Here is the link to our public filing (10Q), which covers our public disclosure on the SEC matter – https://investor.cavco.com/public/phhweb/gallery/userupload/ir-doc-580/cvco_2018.9.29_10q_final.pdf 

Please see page 25, paragraph 4, where it states: 

“Legal Matters. On August 20, 2018, the Company received a subpoena from the SEC’s Division of Enforcement requesting certain documents relating to, among other items, trading in the stock of another public company. On October 1, 2018, the SEC sent a subpoena for documents and testimony to Joseph Stegmayer, the Company’s former Chairman, President and Chief Executive Officer, regarding similar issues. At this time, the Company believes that Mr. Stegmayer traded in certain publicly traded stock in his personal accounts as well as in accounts held by the Company at a time when the Company had agreed to refrain from such trading. The Company has initiated an independent investigation and intends to cooperate fully with the SEC’s investigation.” 

This is our public disclosure related to the SEC matter.

John

John Lovallo

Practice Chair – Financial Communications

 

JohnLovalloPhotoLevickLogoCommunicatingTrustCAVCOIndustriesCVCODailyBusinessNewsMHProNews600

 

About Lovallo, Levick and Cavco

Cavco Industries has their own media relations person. That normal press relations person at Cavco was also contacted, but allowed John Lovallo to make all of their formal replies in this Stegmayer/SEC matter.

Why is that significant?

Because Lovallo works for Levick, which their site describes as follows.

We are the leading public relations firm that establishes and protects trust. LEVICK deploys uniquely qualified teams – armed with the instincts, influence, and experience needed to win your battles in an increasingly complex and challenging world.

As the screen capture below reflects, Levick is into “crisis management.”

 

LevickCommunicatingTrustCrisisManagementDailyBusinessNewsMHProNews

 

Put differently, it’s arguably recognition by management at Cavco that they have a crisis, which they are trying to manage as best they can. That’s not implying something sinister. Rather, it’s perhaps an intelligent option to attempt to protect a firm and its shareholders.

But that in turn arguably underscores what our well-placed source told MHProNews, namely, that this is a “debacle” at Cavco.

Given Joe Stegmayer’s role as MHI Chairman, it’s a “debacle” that arguably reflects beyond Cavco.

Which brings us to the SEC.

Christopher Carofine, at the U.S. Securities and Exchange Commission, told MHProNews that the organization “Decline to comment.”  That was in response to this inquiry.

Cavco’s press release

 

https://globenewswire.com/news-release/2018/11/08/1648646/0/en/Cavco-Industries-Annouces-Executive-Leadership-Changes.html

says in part as follows:

The Company also announced that it had received a subpoena from the Securities and Exchange Commission’s Division of Enforcement (“SEC”) requesting certain documents relating to, among other items, trading of the stock of another public company. Subsequent to sending the Company a subpoena, the SEC sent a subpoena for documents and testimony to Joseph Stegmayer, regarding similar issues. The Company has initiated an independent investigation and intends to cooperate fully with the SEC’s investigation. Please see Part II, Item 1, Legal Proceedings section of the Company’s quarterly report on Form 10-Q for the period ended September 29, 2018, filed with the Securities and Exchange Commission contemporaneously with the issuance of this press release, for additional information regarding this matter.”

Our question is this.  Which company was the “trading of the stock of another public company” referring to, please?”

But the next direct ‘no comment’ could, depending on the answer to the issues raised herein, be a hidden story-behind-the-Cavco-trading-story.

MHProNews asked the SEC’s Carofine, “Are you investigating possibly AntiTrust issues? Involving Clayton Homes (Berkshire Hathaway), Cavco and Stegmayer, who is still the Manufactured Housing Institute chair?”

Carofine’s reply?

Decline to comment.”

 

Outside Counsel OTR Feedback to Above

ConfidentialNewsTipsOKTipsIreportMHNews@MHMSM-comGraphic

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

According to an outside attorney asked to review the puzzle pieces laid out above, “the key language to me — and potentially the key to solving the mystery — is the language “at a time when the company had agreed to refrain from such trading.”  That would indicate that there was some previous issue with the SEC or other regulators — i.e., “agreed” with who?  And why?  Would the trading have been legal but for that agreement?  Did the agreement grow out of a previous enforcement action? When?  Probably the agreement was in writing.  Where is it?  Wouldn’t such an agreement be germane to investors?  Was it disclosed?  When?  If not, why not?

 

Another legal comment indicated that this may or may not connect to concerns by some in the industry that a masked antitrust issue may be at play.

It’s a concern that is denied by those asked at Cavco.

But Stegmayer, who is a former division president for Clayton Homes, per some industry sources, needed help to get his early acquisitions of other manufactured home firms at Cavco ‘done.’  “Their [Cavco’s] balance sheet didn’t support” their early acquisition, was an argument made by one such source, when MHProNews asked for evidence of their concern.

CavcoIndustriesCVCOFocusTransformationManufacturedHousingIndustryDailyBusinessNewsMHProNews

From Cavco IR presentation.

It should be noted that prior to receiving documents on 21st used in Smoking Gun 3 (see related reports, further below) and other MHProNews articles, those was just another unconfirmed claim. Obviously, those documents transformed a mere claim into a noteworthy purported path to consolidate manufactured housing.  So, if there is specific evidence about Cavco and their acquisitions, it should be presented to investigators or MHProNews, which can be done off-the-record.

An attorney indicated that the pending CVCO shareholder suits, if they aren’t settled out of court, could reveal information on that antitrust, MHI, Clayton, or other subjects in discovery.  Because these have possible antitrust and/or RICO implications, and could be a thorny issue for the Manufactured Housing Institute (MHI) too.

MHProNews will continue to monitor this issue and expects relevant updates from contacts with the various operations noted above. That’s this morning’s MH “Industry News, Tips, and Views Pros Can Use,” where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

 

Related Reports:

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

 

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

 

 

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

November 14th, 2018 Comments off

 

JoeStegmayerPhotoManufacturedHousingInstituteLogoMHILogoChairmanCavcoIndustriesLogoManufcturedHomesMHProNews600x315

The Manufactured Housing Institute (MHI) has sent out a message to their members earlier today.  It’s debatably a common-for-the-Arlington, VA based trade group, in that it has a mix of purportedly accurate, questionable, misleading, and missing information.

 

Among the more interesting points are what MHI was mute on.

For example, what is to become of Joseph Stegmayer, who is still listed on the MHI website as their current executive committee chairman?

 

Cavco Chairman Joseph H. Stegmayer Steps Down Under SEC Cloud, “Personal, Confidential” SEC Document, Cavco Industries’ Statement

 

Stegmayer stepped down last week under the cloud of an Securities and Exchange (SEC) subpoena, as the Daily Business News on MHProNews reported at this link above.

Quoting part of Cavco’s statement: “The Company also announced that it had received a subpoena from the Securities and Exchange Commission’s Division of Enforcement (“SEC”) requesting certain documents relating to, among other items, trading of the stock of another public company. Subsequent to sending the Company a subpoena, the SEC sent a subpoena for documents and testimony to Joseph Stegmayer, regarding similar issues. The Company has initiated an independent investigation and intends to cooperate fully with the SEC’s investigation. Please see Part II, Item 1, Legal Proceedings section of the Company’s quarterly report on Form 10-Q for the period ended September 29, 2018, filed with the Securities and Exchange Commission contemporaneously with the issuance of this press release, for additional information regarding this matter.”

Sources suggest to MHProNews that if Stegmayer is cleared, he might return to a leadership role at Cavco. But if the SEC investigation proves to be as serious as some inside and outside of the publicly trade firm (CVCO) believe, Stegmayer could be exited from his new interim role.  The full Cavco release is found at this link here.

 

“Debacle”

An insider, well-placed source told MHProNews that the development at Cavco was a “debacle.” There will be a separate follow-up report that focuses on updates from Cavco and other sources on the Stegmayer matter.

But why is Stegmayer still in his position as MHI Chairman, while the fog of an SEC investigation hangs over Cavco?

 

CVCOJoeStegmayerStockDropAfterSECCOnnectedShakeupManufacturedHousingIndustryDailyBusinessNewsMHproNews

 

Scandal and Some MHI Chairmen…

Recall that MHI didn’t budge when then-Chairman Nathan Smith came under his own cloud when residents of SSK filed a class action suit against his firm.

Other controversies during the Tim Williams/21st Mortgage prior chairman era failed to move the Arlington, VA based association then.  That included, but isn’t limited to, allegations of racism and predatory lending against Berkshire brands.  Congresswoman Maxine Waters is now slated to take over as the chair for the House Financial Services Committee.  Waters and her colleagues asked for the Department of Justice (DOJ) to investigate.

 

Seattle Times -Federal Investigations-Berkshire Hathaway’s Clayton Homes, GuruFocus Spotlights Buffett’s Clayton’s “Unethical,” Monopolistic Moat

 

According to the Seattle Times, those investigations are ongoing. MHProNews recently reported that other federal investigations of MHI member ‘big boys’ are also under investigation.

 

Affordable Housing, the Visible, Yet Mysterious Struggle for an Obvious Solution, Case Examples

 

One or more investigation storm(s) of the manufactured housing industry’s larger members, potentially including MHI itself, are purportedly approaching.  And should that tempest become public in an oversight way, it may come from Democratic sources, given statements by Waters and others.

Yet for whatever reasons, Tim Williams, Jim Clayton, Warren Buffett and others supported opposition candidates that previously worked for MHI on Preserving Access.  Or is that part of the point?

Recall that Nathan Smith admitted that the industry (i.e.: MHI) had to honestly admit the times it dropped the ball.

 

 

That said, where are any of the issues raised herein addressed in MHI’s recent email news today? Where is the transparency that the late Howard Walker – who was on the MHI Executive Committee for years – said should exist?

 

HowardWalkerPhotoELSViceChairmanManufacturedHomeCOmmunitiesManufacturedHousingInstituteExecCommitteeMemberQuoteTransparencyMHProNews

Thoughtful words, worth pondering. 

 

ManufacturedHousingInstituteLogoMHILogoNewsUPdatesMHProNews11.14.2018DailyBusinessNewsMHProNews

 

Note there are other debatably deceptive, misleading or a mix of truth-with-slight-of-hands in the recent MHI communication to their members.  Some of those may be explored further in the days ahead.

In the meantime, a simple word to the wise.  If MHI said it, how does it stack up to objective facts?

NOTICE: Watch for a follow up report on the Cavco/Stegmayer/SEC matter in the days ahead. To sign up for our emailed headline news, see the link here or below.

The Daily Business News on MHProNews will continue to track and report on these issues. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

 

Related Reports:

Cavco Shareholder Suits Prepping, CVCO, SEC, Insider Responses to Growing Scandal

 

National New HUD Code Manufactured Home Production Data Summary, September 2018 Analysis

 

“Rent is Too Damn High,” But Why? MHVille Struggles & Solutions

Prosperity Now, Protests, Indivisible Project, Warren Buffett, George Soros, POTUS Donald Trump, MHAction and Manufactured Housing – Following the Money

 

Affordable Housing, the Visible, Yet Mysterious Struggle for an Obvious Solution, Case Examples

 

 

 

“Rent is Too Damn High,” But Why? MHVille Struggles & Solutions

November 11th, 2018 Comments off

 

RentIsTooDamnHighButWhyDailyKosMHVilleStruggles&SolutionsDailyBusinessNewsMHproNews

From New York to California, there have been protesters who’ve carried signs saying the “rent is too damn high.”

 

It’s vexing. Because this ought to be yet another signal for manufactured housing professionals and investors to better understand the dynamics that could spark the industry’s authentic return as a major producer of housing in America.

But instead, as other reports from this past week reveal, manufactured housing nationwide stalled in new home shipments. Some states rose, others fell, and the net outcome nationwide is a slip. All of those reports are linked below.

Molly Ball has a featured report on left-of-center Time Magazine that reveals her view that it’s about to get worse in America. Time has been strongly anti-Trump at least since 2016, but they admit the 45th President of the United States (POTUS) bucked the tide of decades of midterm history. That’s significant to industry pros for reasons Saturday’s Daily Business News report reflects.

Seasoned and savvy manufactured housing professionals don’t have to be told that we have a great option for affordable housing. Arguably, it’s the most bang for the money. It’s a solution to the rent that is ‘too damn high.’

So why isn’t the industry performing better?  The answers are being revealed, one story at a time, and in reports like this week’s Masthead. 

But there’s more.

There’s big news about Legacy Housing, and a stunning shakeup at Cavco. A big move by Sun Communities too. Those and other reports below.

Check out the in depth Saturday report and analysis on the milieu in which affordable housing’s struggles are embroiled in, along with over 2 dozen more other articles and reports from the week that was.

We provide actionable insights, fact-checks, reports, and analysis that are found no where else in the manufactured housing industry’s trade media. It’s an avoidably modest industry today, a fraction of what it was in 2018. That sad, because it is avoidable. But it is also an opportunity in disguise, for those willing to dig in, understand and then take specific action steps. The right steps would arguably make individual locations more profitable than they’ve been in years, decades, or perhaps the best ever.

You’ve made us the runaway number one trade media in manufactured housing. The industry, per the Manufactured Housing Institute (MHI) has 40,000 full time equivalents (FTEs) We think their figure may be low, but regardless it is a sobering number to reflect upon. With that backdrop, our thanks to all of our readers, clients, and sponsors for making this the place where well over ten thousand pros and industry researchers will come on an average day to read “Industry News, Tips, and Views Pros Can Use.” ©  As millions head to or from Sunday worship, as we look ahead to Veterans Day tomorrow, there is much to ponder, pray, and then perform. 

With no further adieu, let’s dive into the headline week in review, on this Sunday Morning. 11.4 to 11.11.2018.

 

What’s New on the Masthead

 TheMastheadCommentaryLATonyKovachMHProNews

Prosperity Now, Protests, Indivisible Project, Warren Buffett, George Soros, POTUS Donald Trump, MHAction and Manufactured Housing – Following the Money

 

What’s New from MHARR

“A HUD MONITORING CONTRACT ‘BRIDGE TO NOWHERE’”

 

Financial Services Chairman Calls for End of GSEs

 

September 2018 Manufactured Home Production Data Shows Slight Flatline

 

What’s New on the Daily Business News on MHProNews

 1DailyBusinessNewsLogoMHProNewsLogo-1

 

Saturday 11.10.2018


Affordable Housing, the Visible, Yet Mysterious Struggle for an Obvious Solution, Case Examples

Affordable Housing, the Visible, Yet Mysterious Struggle for an Obvious Solution, Case Examples

 

Friday 11.9.2018

Legacy Housing Files for IPO, Plus Manufactured Housing Industry Market Updates

Legacy Housing Files for IPO, Plus Manufactured Housing Industry Market Updates

Manufactured Home Owner, and Billionaire Third Point Hedge Fund’s Daniel S. Loeb Shakes Market Watchers

Manufactured Home Owner, and Billionaire Third Point Hedge Fund’s Daniel S. Loeb Shakes Market Watchers

Cavco Chairman Joseph H. Stegmayer Steps Down Under SEC Cloud, “Personal, Confidential” SEC Document, Cavco Industries’ Statement

Cavco Chairman Joseph H. Stegmayer Steps Down Under SEC Cloud, “Personal, Confidential” SEC Document, Cavco Industries’ Statement

Divisions in America, and Manufactured Housing – Reality Check 1 – 11.9.2018

Divisions in America, and Manufactured Housing – Reality Check 1 – 11.9.2018

 

Thursday 11.8.2018

Markets Muted, Mixed, See FED OMC Meeting Notes, Plus MH Market Updates

Markets Muted, Mixed, See FED OMC Meeting Notes, Plus MH Market Updates

National New HUD Code Manufactured Home Production Data Summary, September 2018 Analysis

National New HUD Code Manufactured Home Production Data Summary, September 2018 Analysis

Direct Relationship – Rule of Law, Sound Information, Equal Access, Profits & Pay – MHVille, Megyn Kelly, Tucker Carlson

Direct Relationship – Rule of Law, Sound Information, Equal Access, Profits & Pay – MHVille, Megyn Kelly, Tucker Carlson

MHARR Warns Single Source Federal Contract is “Bridge to Nowhere”

MHARR Warns Single Source Federal Contract is “Bridge to Nowhere”

Wednesday 11.7.2018

Sun Communities Strategic Investment in Ingenia Communities, Info, Videos Beyond the Release, Plus Manufactured Home Industry Market Updates

Sun Communities Strategic Investment in Ingenia Communities, Info, Videos Beyond the Release, Plus Manufactured Home Industry Market Updates

Key Clayton/MHI/BO Bets Spanked, First Look at Winners & Losers

Key Clayton/MHI/BO Bets Spanked, First Look at Winners & Losers

Conflict of Interests? MHI’s, MHARR’s Most Recent Statements on Controversial GSE Lending, House Financial Services Committee Chairman Weighs In

Conflict of Interests? MHI’s, MHARR’s Most Recent Statements on Controversial GSE Lending, House Financial Services Committee Chairman Weighs In

Another Top Manufactured Home State is Sliding on New HUD Code Home Shipments, More New Data

Another Top Manufactured Home State is Sliding on New HUD Code Home Shipments, More New Data

 

Tuesday 11.6.2018

Red Wave? Blue Wave? Here’s What Wall Street Is Watching, plus MH Market Updates

New Shipment Data, Top Manufactured Home State, Other MH States Continue Slide

New Shipment Data, Top Manufactured Home State, Other MH States Continue Slide

Lead, Kindly Light

Lead, Kindly Light

Sexual Harassment, #MeToo Small Business Workplace Webinar

On the Eve of the Midterms, Closing on Willie Horton? Plus, MH Market Updates

On the Eve of the Midterms, Closing on Willie Horton? Plus, MH Market Updates

 

Monday 11.5.2018

MH Sales, Marketing, Management Life Lesson – Plan A, Plan B

MH Sales, Marketing, Management Life Lesson – Plan A, Plan B

Former Clayton Homes Team, Employees Speak Out – Mainstream Media, Trade Media Reports

Former Clayton Homes Team, Employees Speak Out – Mainstream Media, Trade Media Reports

VP Mike Pence, “We’ll Hold House,” Make History “When We Elect John James” Rush Limbaugh, Sean Hannity Rally With POTUS Trump Monday Evening

Sunday 11.4.2018 Plus MH Week In Review, for 10. .2018 to 11.4.2018

Business Strategy, Open and Stealth Clients, Transparency, and Manufactured Housing

Business Strategy, Open and Stealth Clients, Transparency, and Manufactured Housing

 

Together with honest MHVille pros of good will, we can make our industry achieve its great potential. That’s done by making American lives better, together. “We Provide, You Decide.” © ## (Sunday Morning, weekly headline news review, analysis, and commentary.)

NOTICE: You can join the scores who follow us on Twitter at this link. You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here.

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1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

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3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Related Reports:

The Coming Breakup of Berkshire? MHI? Plus Sunday Headline Recap 10-14-2018 to 10-21-2018

 

Just the Facts – Compare Curbed and MHI, Next Step, Clayton, Cavco, Champion Homes Video Results

August 24th, 2018 Comments off

 

ManufacturedHousingInstituteMHILogoNextStepLogoClaytonHomesLogoCavcoLogoChampionLogoHomeFutureMHproNewsJust 18 days after their first video was posted, Episode One of Curbed/The Verge’sThe Home of the Future” is already over 750,000 views.

 

WeBuiltTheHomeOfTheFutureCurbedVergeFordViews

By contrast, the Manufactured Housing Institute (MHI), Next Step, Clayton Homes, Cavco Industries, Champion Homes video, published on Nov 15, 2017 now has 1,433 views.

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We could scrutinize those facts in dozens of ways, but will keep it simple on a Friday evening by saying what we did shortly after they came out with their ‘big announcement.’  MHI, and those who teamed with them, missed some key points of “story telling.” 

Keep in mind that the goal here isn’t to slam those involved, rather, it is to make industry professionals step back and think. Everyone needs accountability. 

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Critiques, fact checks, aren’t personal. Rather, they are a professional necessity.

In business, there are metrics for accountability.

The proof  – the metrics – are measured in their respective view results.

SometimesModestAdjustmentIsNeededToGetAroughSoundingENgineurringSmoothlyRunningEfficentlyButfirstIdnetifyThenREsolveCauseoftheProb lemsLATonyKovachQUote

Get your motor running smoothly and efficiently.

Given MHI’s multi-million dollar a year budget, it is also obvious they have not put enough resources into this to move the needle. It should be noted that the Next Step/MHI video is posted on MHI’s website, and several other websites too. Ouch, ouch, ouch…

 RememberThisQuoteIrPrettyPicturesMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews

 

Amen Corner, vs. Fact and Evidence Based Reality Checks?

So why should MHPros be surprised if MHI – which they and their amen corner thumps their chest about ‘all they are doing for the industry’ – when by several objective measures, they are arguably failing.  

Keep in mind that MHI asked others to ‘spread the word’ about this video.  Sad response to their leadership, isn’t it?

ICYMI, look at the RVs vs. MH data below, and the related reports, shown below. The question readers must ask are ones like these.

What RV Industry’s 2018, Prior Results Reveal for Manufactured Housing

  • Is MHI just inept at doing what they claim their agenda is?
  • Is MHI merely posturing? Play acting?
  • How do you explain the difference between what Curbed and the Verge have already done, vs. what the ‘professionals’ at the Manufactured Housing Institute have accomplished? 

MHI, care to answer?  “We Provide, You Decide.” © © ## (News, analysis and commentary.)

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Related Reports:

Ford is Powering the “Home of the Future”

Frank Rolfe Video, Manufactured Housing Institute, Media Engagement, Context, Richard “Dick” Jennison, Manufactured Home Industry, and You

Only 3 Options – the Elephant in the Room

State Association Tips Heat Up Ducker Worldwide Controversies, Manufactured Housing Industry Report

February 19th, 2018 Comments off
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Photo credits, Ducker Worldwide, and AHA.

Christopher C. Fisher, managing principal of Ducker Worldwide, spoke at length…about marketing possibilities for the manufactured housing industry. His company has undertaken an extensive study of what millennials and baby boomers need and how the industry can attract those customers,” according to a state association source to MHProNews.

 

He [Fisher] went through an extensive array of finding and statistics, saying our industry is in line to attract 2.7 millennials and nearly 1 million baby boomers. The boomers want to downsize to a smaller home with a single floor and a reduced payment,” per that source to the Daily Business News.

Both groups [millennials, boomers] want homes that includes garages, energy efficiency and have pitched roofs. Upgraded exteriors also are important. “They would find value and pay for an attached garage,” Fisher said. “The current product does not close the gap on what we want to do.”

 

Thewe” from Fisher here refers to the Manufactured Housing Institute (MHI), who funded the research.  Those top lines are rather similar to what Barry Noffsinger said in a 16 minute video seminar, shown below.

But Credit Human’s Noffsinger – an MHI member company – did not make Fisher’s final caveat,  “The current product does not close the gap on what we want to do,” why?  Perhaps because Noffsinger and others know manufactured home retailers and communities that are already closing sales using HUD Code manufactured homes sold prior to the MHI paid for research.

 

 

What the industry needs to do is secure better regulatory standards; establish and improve financial alternatives; translate new exterior and other change concepts being proposed by industry leaders into common industry offers; and find a way to get this new product to market,” said Fisher to MHI meeting attendees.

It’s a problematic close to a presentation, according to another now-former MHI member who still does business with MHI companies. Per that source, there was no stunning new revelation, much of the material the Ducker presentation was covered by other third party research. And for them to essential sa there was no plan i.e.: Fisher’s “and find a way to get this new product to market,” was revealing.

A MHEC member has blasted the plan and raised red flags for independent producers and others, see that, linked below.

Secretive “NEW” Class of Manufactured Housing Raises Serious Concerns

Louisville Show attendees recall that Jennison cancelled that presentation “at the last minute” per a source with Show Ways, after MHProNews encouraged industry members at Louisville to ask Jennison 12 questions.  The photo below revealed that Jennison was on the show floor at the time his scheduled presentation was supposed to take place.

 

As another association executive said, if they wanted to publicize their Ducker plan, why doesn’t MHI take every opportunity – including engagement with MHProNews to – do so?

The AHA take On MHI Ducker Plan

Suzanne Felber

Suzanne Felber, AHA.

American Housing Advocates (AHA) was founded by Suzanne Felber and Bruce Savage, according to their own website.

Felber is well known as an “MHI surrogate,” who happily promotes whatever’s the MHI party line is. Felber and her partner reportedly do contrast work for MHI, and for some MHI member producers too.

 

AHA said that the Ducker initiative, “will research underserved areas that can be vital to the growth of the industry: millennials, immigrants, and step-down baby boomers.

MHI stated that the initiative would be led by the following industry leaders:

 

Keith Anderson, President of Champion Home Builders”

Kevin Clayton, President and CEO of Clayton Homes

Jayar Daily, Chief Operations Officer of American Homestar Corporation

Richard Florea, CEO and President of Skyline Corporation

Joe Stegmayer, Chairman & CEO of Cavco Industries

Dick Jennison, President & CEO of MHI

Christopher C. Fisher, Managing Principal of Ducker Worldwide

 

Private “Club” within MHI?

According to a source at Skyline Homes, Florea had to ask if he could “join their club” meaning the producers who are part of this MHI-Ducker Worldwide so-called  “initiative,” which apparently leaves most other industry producers out in the cold, if this plan is advanced with regulators at HUD, or with the GSEs. Thus the concerns by the Manufactured Housing Association for Regulatory Reform (MHARR).

marty-lavin-jd-manufacturedhomefinanceexpert-DailyBusinessNews-mhpronews

Marty Lavin, JD.

Daily Business News readers recall how MHI award winner, Marty Lavin torched the MHI initiative, as it failed to address underlying issues that caused the industry’s relatively low production levels.

The Question for Industry Professionals?

The question for Industry professionals is this. What has MHI accomplished since Richard “Dick” Jennison become president and CEO that merits confidence? Where are other successes, that back up the reason to be confident in this project?

Or is this another dead-end/head fake which would lead to more companies. Including rival producers, to be put out of business?

Another state association source said, ‘We’ve hired outside [of the industry] consultants like them [Ducker Worldwide] before too,’ said that source to the Daily Business News. And ‘we learned the hard way it was costly, and they always told you what those paying for the study wanted to hear.’

As one source said, so those that failed to:

  • head of the SAFE Act,
  • or modify Dodd-Frank,
  • or stop Pam Danner’s overreaches at HUD,
  • or who routinely fail to address bad news when it hits the media,

are now to be trusted to fix the industry’s relatively low production levels with a plan led by the same people who allowed these challenges to occur in the first place?

We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Just the Facts – Trump Effect on Manufactured Home Connected Stocks, Part 1

November 9th, 2017 Comments off

DonaldJTrumpMarketImpactDailyBusinessNewsMHproNewsWhile providing ‘fair and balanced’ coverage, as was reviewed earlier today in a separate report, it was a strategic decision to editorially support the Trump campaign in 2016.

One year later, the fruits of that decision ought to be clear.

While Nobel award winning Paul Krugman at the New York Times, Paul Krugman, an Op-Ed columnist, who writes about macroeconomics, trade, health care, social policy and politics predicted an economic meltdown in the wake of a Trump victory.  “It really does now look like President Donald J. Trump, and markets are plunging…” said Krugman.

 

MHProNews believed otherwise, based strictly on the stated positions of the candidates.

This publication has a pro-industry agenda, and we strive to pursue that with what we hope are clear eyes and minds, daily.

We mention this because like the data below, it’s a fact.

To see our election plus one year report, click here.

AffiliatedManagersGroup!YearMarketTrendTrumpEffectManufacturedHousingIndustryResearchDataReportsDailyBusinessNewsMHProNews

 

 

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This evening’s Cavco Industries spotlight portion of our Daily Business News market report reflects and hints at the kind of added information that pure financial analysts may not know or miss.  Perfect?  No who is?   But what we’ve consistently proven to thousands of daily readers for years is that We Know the MH Biz.” ©

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Faith, flag, freedom, free enterprise, family, and fellows.  These are some of the core principles we strive to operate under.  Long time readers know we provide written fact checks and analysis others can’t or won’t do.  As 1 year ago snapshot, and other examples suggest, our track record on facts and analysis is one of the reasons why – from firms large, small or operations in between – we’re the most read, most followed, news source in manufactured housing.

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Between third party data, and our own unique understanding of the industry, plus our various industry sources, this is a unique place to gather insights you may not find anywhere else in a single trade site.

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