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Skyline Champion Soared, What’s Up? Initial Look Behind the Curtain

May 24th, 2019 No comments

SkylineChampionSoaredWhatsUpInitialLookBehindCurtainManufacturedHomeMHProNews

The Motley Fool is an investment site that has reportedly drawn the ire of industry leaders such as Joe Stegmayer, former president and chairman of Cavco Industries and still MHI Chairman, on more than one occasion. Indeed, such stock and financial news sites, including Seeking Alpha, are often a mixed bag of useful and problematic reports – in part because those writing their analysis may get financials or certain details correct, but may still lack the manufactured home industry specific insights that could make their reporting better.

 

Rephrased, as with our sources we track, MHProNews takes a ‘wheat and chaff’ approach to their narratives.

With that brief backdrop meant for our growing audience, the Daily Business News on MHProNews turns to a report Wednesday by the Fool’s Lou Whiteman, who disclosed that he “has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.” MHProNews uses a similar disclosure.

As MHProNews has customarily done for years, we often turn quoted text bold and brown to make it pop, but the quotes are otherwise as in the original.

 Whiteman said in the report found at this link here that, “Another strong earnings report provides evidence the company’s 2018 acquisition is paying dividends.”

That should be understood in the light of the graphic below, which reflects the 1 year trend on Skyline Champion’s (SKY) stock’s value.

SkylineChampionStock5232019TickerManufacturedHousingIndustryMHProNews

 

That noted, before diving into the specifics of Whiteman’s analysis of the SKY stock’s recent moves, in the wake of an upbeat report, let’s focus on this pull quote.

Consistent with our [The Motley Fool’s] previous comments, we remain positive on the outlook for manufactured housing industry, as we see significant runway for continued growth. Industry volumes remain well below the long-term averages, and new financing options are becoming available and are slowly helping close the gap with those historic trends.”

That’s a point that most HUD Code manufactured home industry professionals can agree with, and take some heart in.

BloombergShipmentProductionDataManufacturedHousingMHProNews2019-05-16_1057

But that too must be understood in the light of significant evidence of market manipulation, which is arguably at the heart of why Skyline Champion – or most any other manufactured housing firm – are underperforming.  One of several possible examples a newcomer can begin to research is linked below.

 

 

The following graphic is a composite from the firm’s website.

 

SkylineChampionByTheNumbersSKYmanufacturedhousingDailyBusinessNewsMHproNews

 

That said, back to Whiteman’s narrative. The bullets represent quotes under the subheadings from the Motley Fool.

What happened

  • Shares of Skyline Champion (NYSE:SKY) climbed 13.9% on Wednesday, after the manufacturer of modular homes reported quarterly results that suggest the company is performing well following a major acquisition last year.

So what

 

  • On Tuesday after the markets closed, Skyline Champion reported fiscal fourth-quarter earnings of $0.26 per share on revenue of $327.7 million, beating the $0.20-per-share consensus earnings estimate despite falling short of the $344.22 million in expected sales. The company was created last June through a merger between Skyline and Champion Enterprises, which created the nation’s largest publicly traded factory-built-housing company.
  • Net sales in the quarter grew 23% year over year, and U.S. sales led the way with 35% growth. Skyline Champion reported both a 15% increase in total number of U.S. transactions and a 17% increase in average selling price, as a result of strong demand and favorable product mix. In Canada, sales fell 17% because of a decline in homes sold.
  • This is Skyline Champion’s second straight quarterly beat.

Now what

 

  • CEO Keith Anderson, on a post-earnings call with investors, said the manufactured-housing market in recent years has grown faster than the broader housing industry. He added that the company expects growth to continue into the new fiscal year:

  • Skyline Champion ended the quarter with a backlog of $143 million, down slightly from $155 million a year prior, but the company says the current total is higher quality because it doesn’t include inflated orders for lower-margin Federal Emergency Management Agency residences.
  • Based on the stock reaction, investors seem to believe Skyline Champion is building on a solid foundation.

##

To reiterate in a different way, investors in stocks like SKY ought to demand investigation followed by action about purported market manipulation.  The Fool is right in saying there is plenty of upside, but it could be achieved faster and with hefty returns, in the absence of concerns such as those linked herein and below.  That’s not only the expert view here, but by others in the industry, as the reports further below reflect.

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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 or Comments or Letter to Editor in the subject line.

 

Special Skyline Champion Report Ahead

MHProNews plans a special report on Skyline Champion in the days ahead. Watch for it. For a prior and other related reports, see below the byline, offers, and notices.

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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.

That’s this morning’s second 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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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 or Comments or Letter to Editor in the subject line.

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

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 browsers do.

(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:

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

“Lead, Follow … Or Get Out of The Way”

“Monopoly” in Manufactured Housing Alleged by George Allen, MHI Defender’s Turn by former Community-Investor, Self-Claimed EducateMHC Blogger

Kobayashi Maru, Crime, Kevin Clayton, Darren Krolewski, MHInsider – State of Manufactured Housing Industry

 

 

 

 

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

February 14th, 2019 Comments off

 

CavcoIndustriesWoesMountBroaderManufacturedHousingImpactBeyondTheirBrandsDailyBusinessNewsMHProNews600

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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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.

 

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.

 

 

CavcoIndustries2142019ManufacturedHomeIndustryNewsDailyBusinessNewsMHProNEws

 

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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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.  

 

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.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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.

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

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.)

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:

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

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

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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

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

Independent National Manufactured Housing Post-Production Association Takes Major Step

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

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

 

 

 

 

 

 

 

Will Higher Interest Rates Affect the Housing Market?

March 28th, 2015 Comments off

house price increases  housingwire  creditAccording to what housingwire tells MHProNews, Motley Fool got opinions from three of their analysts abut the effect of rising interest rates, which the Federal Reserve will very likely raise in either the second or third quarter.

Matt Frankel says marginally higher interest rates will not impact the real estate market that significantly because, at least in the short term, mortgage payments will not be that much greater.

Jordan Wathen believes rising interest rates will reduce the amount of real estate on the market because it will be less attractive to move, and will prevent marginal homebuyers from entering the market. He also states household formation has been increasing since the Great Recession, and that will have the strongest impact on the real estate market. He does not think higher interest rates will affect that progression.

Dan Caplinger says the low interest rates have allowed homebuilders to purchase land inexpensively, giving them more opportunities for development. He says higher interest rates will make them more selective about building homes, and that could impact their share prices. ##

(Image credit: housingwire--house price increases)

matthew-silver-daily-business-news-mhpronews-com  Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

Cavco’s Revenues Spiked Grandly, but……..

June 27th, 2012 Comments off

MSNBC tells us Seth Jason at The Motley Fool says he judges company performance by comparing inventory increases to revenue increases: if inventory expands faster than sales, it could indicate a problem, one which he suggests may be happening at Cavco Industries. Trailing 12-month revenue rose 157.9% while inventory increased 288.2%. When comparing the most recent quarter to the same quarter last year, revenue grew 156.3% and inventory rose 288.2%. But the sequential quarterly period saw revenue fall 13.1% and inventory drop only 0.1%. In addition, Jason notes the type of inventory—raw materials, work-in-progress, and finished goods—may be telling. A large increase in finished goods inventory may mean product is not selling well. MHProNews has learned at Cavco, on a trailing 12-month basis, finished goods inventory grew the fastest, increasing 1,023.6%. On a sequential-quarter basis, work-in-progress inventory grew the fastest, increasing 19.1%. The author does caution that numbers cannot tell the whole story: Call the company’s investor relations for a more thorough accounting. Cavco is one of the largest manufacturers of manufactured and modular housing in the U.S. Cavco’s stock gained 4.23% in today’s trading.

(Image credit: Cavco Industries, Inc.)

Motley Fool Outlines Why Real Estate Will Bounce Back

March 12th, 2012 Comments off

Kitchen at Legacy Homes in Texas

Clayton Homes, Vanderbilt Mortgage and Finance, as well as MH home-building, lending and other housing suppliers parent company Berkshire Hathaway chairman Warren Buffett said recently that if it were practical, he’d buy up “millions” of single family homes. Housing, he said, could be a better asset to hold than stocks. A recent item from the Motley Fool outlines some of the why. In many areas a combination of collapsing prices and record-low interest rates has made housing more affordable than ever. Moreover the cost of renting is rising. The real driver of housing, however is household formation, and that’s determined in part by demographics. On one hand you have the baby boomers, who might rather dispose of the home they have than buy one. On the other hand you have their children. Since 1947, an average of 1.2 million new households have formed every year and we created some 1.5 housing units a year. The difference represents both an over-supply, and some old homes which were destroyed. However in 2009, less than 400,000 new households were formed, not because of a shortage of people, but because the recession lead to shared residences. The formation rate was back to 1.1 million in 2011, however. Better employment numbers mean those sharing space will begin forming new households. Moreover, a fairly young population and continued immigration mean the good numbers on household formation will continue. As the article states: ” Even if immigration falls to half the Census Bureau’s currently projected rate, household growth will still average about 1.25 million annually. This low-end estimate puts household growth in the next 10 years on par with the pace in 1995-2005, and should support average annual housing completions and manufactured home placements of well over 1.7 million units. The higher-end estimate would likely support production exceeding 1.9 million units per year on average over the coming decade.”

(Image Credit: Legacy Homes, Eric Miller)

Buy Buffet’s Brain, says Analyst

January 13th, 2012 Comments off

The Motley Fools’ Robert Eberhard tells MHProNews.com an investment in Berkshire Hathaway (NYSE:BRK-B) stock benefits from being a company, or stock, hand-picked by Warren Buffett. Eberhard compares it to investing in a no-loan mutual fund. The stock is less expensive than it has been recently, and Berkshire’s board has authorized the repurchase of shares for the first time ever. He notes that while the main source of Berkshire’s income is from insurers and re-insurers , the company is poised to take advantage of a resurging housing market. In addition to Clayton Homes, which has about 45 percent of the manufactured housing business in the U.S., Berkshire owns Johns-Manville, Acme Brick, Benjamin Moore Paints, Shaw carpets, and has shares of Home Depot. The company’s holdings in Wells Fargo and US Bancorp, both of which have large mortgage divisions, comprise 12 percent of its investment portfolio. Friday, Jan. 13, the stock closed at $77.77.

(Graphic credit: Berkshire Hathaway/Wikipedia)