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With Storm Clouds Over Cavco, Eyes on Legacy Housing (LEGH) IPO Today

December 14th, 2018 Comments off

 

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The timing of the Legacy Housing IPO is an interesting.

 

The firm is attracting attention on its own merits from investors and analysts, who – for example – note that the two principles will have some 57 percent of the stock. The solid growth track-record for Legacy (LEGH), having their own financing available, a combination of both vertical retail and independent distribution are among the talking points.  More detailed reports are found by clicking on the box linked below.

 

What Others Say – Legacy Housing Corp (LEGH) IPO Set for 12.14.2018

 

But beyond the firm’s own credentials for the launch today on the tech-heavy NASDAQ, are other factors that can sway investors.  The affordable housing crisis plus the obvious merits of manufactured homes (MH) are talking points that manufactured home community REITs and MH producers alike point to in their investor relations packets.

 

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There is no doubt that the manufactured housing market has proven to be a durable one.

 

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

 

For those investors who are already sold on manufactured housing, the purportedly self-inflected storm-clouds over Cavco Industries (CVCO) – for example – is a possible attraction for those who may want to hedge their portfolios by investing in LEGH.

 

Legal “Incoming” – Tip on Cavco Industries CVCO, plus Manufactured Housing Industry Connected Stock Updates

 

But there are also what could be arguably be deemed artificial headwinds that Berkshire  Hathaway brands operating in manufactured housing, and also through the Clayton Homes et al dominated Monopolistic Housing Institute (MHI), err, pardon the typo, the Manufactured Housing Institute (MHI) to consider.

 

It’s Your Profession – Investment of Time, Talent, Treasure – So What’s Next?

 

There is apparently more antitrust talk coming out of Washington, D.C. that at any time in recent years. The FAANG stocks and Warren Buffett led Berkshire itself are on the radar of federal regulators. Berkshire’s “Moat” strategies are becoming better understood by mainstream media, and has been spotlighted here on MHProNews in a depth not found elsewhere.

 

Draft EO for Trump Administration AntiTrust Order Obtained by MHProNews

 

Legacy and privately held Sunshine Homes have demonstrated above average growth by taking their future into their own hands by engaging in marketing apart from MHI. That’s something savvy investors should like.

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As noted above, this illustration was NOT sent by those providing the respective tips and comments, but is provided by MHProNews to underscore points those sources have made.

 

With several federal and other investigations reportedly underway against Clayton Homes, 21st Mortgage Corp (21st), and Vanderbilt Mortgage and Finance (VMF), is this the time for manufactured housing to break free of the iron grip of Berkshire? Will a combination of feds and other potentially looming legal actions against Berkshire brands and/or MHI be a boon to manufactured housing independents, like Legacy?

 

Whistleblower! Ex-Clayton Homes Team Member on TV Denounces Manufactured Housing Giant’s Practices

 

Time will, of course, tell. Clearly, the principals of Legacy apparently believe so.

They are not alone, as others have taken the regulatory rollbacks of the Trump Administration and his antitrust signals seriously.  A few other new manufacturers have also launched.

Legacy Housing IPO, Lending Tree, & New HUD Ruling Updates

And with Legacy’s recent marketing and educational efforts yielding their biggest backlogs ever, per their own filings, this will be an interesting day for traders and the industry. Many will be keeping an eye on Legacy (LEGH) during and at the close of the day, and naturally some will be jumping on their bandwagon.

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

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Legacy clearly believes in the future of the business, because they are raising capital to expand their retail base.

As a disclosure, MHProNews has no position in any of the tracked stocks in manufactured housing, and has no plans to initiate a position in the next few days. Our reports are independent, which is perhaps among the reasons why we are the runaway most read trade media in all of manufactured housing. “We Provide, You Decide.”

 

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DALLAS, Dec. 14, 2018 (GLOBE NEWSWIRE) — Legacy Housing Corporation (Nasdaq: LEGH), the fourth largest producer of manufactured homes in the United States and a recognized leader and innovator in the manufactured housing industry, announced today the pricing of its initial public offering of 4,000,000 shares of common stock at a public offering price of $12.00 per share.  The gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Legacy Housing, are expected to be $48.0 million.  All of the common stock in the offering is being offered by Legacy Housing. Legacy Housing has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of Legacy Housing common stock at the initial public offering price, less underwriting discounts and commissions.

Legacy Housing intends to use the net proceeds of the offering to expand its retail presence in the southern United States and surrounding geographic markets, provide financing solutions to select housing community-owner customers, repay debt and pursue possible acquisitions, and use the remainder for working capital and general corporate purposes.

Legacy Housing’s common stock is expected to begin trading on The Nasdaq Global Select Market on December 14, 2018, under the ticker symbol “LEGH.”  The offering is expected to close on December 19, 2018, subject to satisfaction of customary closing conditions.

The offering is being made through an underwriting group led by B. Riley FBR, Inc., Oak Ridge Financial and National Securities Corporation, which are acting as joint book-running managers for the offering.

A registration statement relating to the shares being sold in this offering was declared effective by the Securities and Exchange Commission on December 12, 2018.  This offering is being made only by means of a prospectus.  Copies of the final prospectus related to this offering may be obtained, when available, from: B. Riley FBR, Inc., Attention: Prospectus Department, 1300 14th Street North, Suite 1400, Arlington, VA 22209, or by telephone at (800) 846-5050 or by email at prospectuses@brileyfbr.com; Oak Ridge Financial, Attention: Joseph Sullivan, 701 Xenia Avenue South, Suite 100, Golden Valley, MN 55416, or by telephone at (800) 231-8364 or by email at jsullivan@oakridgefinancial.com; or National Securities Corporation, Attention: Marguerite O’Brien, 200 Vesey Street, 25th Floor, New York, NY 10281, or by telephone at (212) 417-8164 or by email at prospectusrequest@nationalsecurities.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Legacy Housing Corporation

Legacy Housing Corporation builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured housing communities. We are the fourth largest producer of manufactured homes in the United States as ranked by number of homes manufactured based on information available from the Manufactured Housing Institute and IBTS for the second quarter of 2018. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $22,000 to $95,000.

Forward Looking Statements

This press release contains forward-looking statements, including with respect to the expected closing of Legacy Housing’s initial public offering.  These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including that the conditions to the closing of the initial public offering are not satisfied.  Legacy Housing undertakes no obligation to update any such forward-looking statements after the date hereof, except as required by law.

Source: Legacy Housing Corporation

Investor Inquiries:

Neal Suit, (817) 799-4906
investors@legacyhousingcorp.com

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From Legacy Housing (LEGH) S1. See full S1 as a download, linked here.

 

That’s this morning’s “News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Related Reports: Click the Boxes Below to Read More...

2019 Manufactured Housing Plant Shows

 

Louisville and Tunica Manufactured Housing Shows, Controversial Profitable, Problematic Issues Loom

Super Model, Entrepreneur Kathy Ireland Dives into “Affordable Housing,” PreFab Construction

July 2nd, 2018 Comments off

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Business mogul Kathy Ireland has built an empire selling everything from dressers to diamonds. Now she’s got her eye on a new investment, shipping containers,” said Fox Business.

 

It’s an extraordinary product. It’s economical; it’s environmentally sound. They’re safe and they’re wonderful,” Ireland said while touring a Los Angeles community center made entirely of repurposed shipping containers.

SGBlocksModularPrefabManufacturedHOusingDailyBuisnessNewsMHProNews

Ireland has invested in SG Blocks, the company that modified those containers for the city’s first container-based arts and recreation center, built in record time to serve the needs of inner-city kids,” per Fox Business.

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The 24,000-square-foot facility has 46 containers which were welded together, with holes carved out for doors and windows.”

 

Traditional construction is the last industry that has been disrupted with technology, so we’re building the same way we did 200 years ago,” said SG Blocks Chairman and CEO Paul Galvin.

Modular construction is the way to disrupt traditional construction.”

The Daily Business News has reported on the developments in the container field for some years.   One of the ironies is that the cost tends to be higher than a typical full-size single section manufactured home for even a significantly smaller unit. Nevertheless, the interest persists.  The report below can be read later for more details.

Are Americans Hunting for the Single Sectional Manufactured Home Alternative?

For millennials, they don’t want to buy the 4,000-square-foot house and have a mortgage they’re stuck with,” said Tommy Meharey, Vice President of Kathy Ireland Worldwide. “This 240-square-foot container is an option feasible in price.”

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The Fox Business writer suggested that the price for a smaller container would be only 3K.  “Each container costs about $3,000 apiece, an attainable option for first-time buyers who can’t afford a pricey home.” That of course is absurd, as that is the cost of a used container, not a finished unit.  That kind of comment is not uncommon on emerging construction methods, and is a reflection of the lack of understanding that can crop up in any mainstream media report on housing developments.  It is why a fact-checking site like this one is useful to professionals, investors, and researchers. 

The SG Blocks own website suggests that they are competing against housing that would normally cost $240 per square foot, and they can achieve pricing that is about $135 per square foot. 

 

But the Kathy Ireland move could bring more light on the trend of tech-giants, investors, and others who are considering the prefab option.

Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales

It also is a reminder to manufactured housing pros that while there is breathing room at this time, that likely won’t remain the case, unless HUD Code professionals grow the industry in a serious way to its true potential.   “We Provide, You Decide.”  ©  ## (News, analysis, and commentary.)

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

Robotics, 3D Printed Housing, Imminent Challengers for Manufactured Homes, Modular Housing – 3D Build Systems CEO Don Musilli

MHVillage Confirms Data, and Michigan Operational Slide Revealed

 

Survey Top 2017 PreFab, Modular, Tiny and 3D Printed Housing News Stories

U.S. President Praised “The Mobile Home Industry,” Manufactured Homes are “Here to Stay”

Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

 

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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.

6 Months In – Housing, Markets Update

July 31st, 2017 Comments off
HousingMarketUpdatePixabayDailyBusinessNewsManufacturedHousingIndustryReports

Image collage by MHProNews/Pixabay.

Since the election on November 8, 2016 the market has seen a relatively steady increase as one-in-four days the stock market has been open ending with record highs.

The S&P 500 and Nasdaq both closed with record high’s yet again on Wednesday – with 28 record breaking days since President Trump took office in January.

Another high has been hit on the markets since.

The S&P 500 and Dow have gained roughly 9% since Trump took office, while the Nasdaq is up almost 15%,” per CNN Money.

Consumer confidence has reportedly improved too.  In the second quarter Americans spent more than the first, which is the most influential contributing factor to a healthy economy, according to MarketWatch, which said, “Spending rose 2.8% in the second quarter as Americans bought more groceries and clothes and paid more for health care. They spent less on new cars and trucks, however.”

“A smaller lift came from business,” per MarketWatch. “Firms increased fixed investment just 2.2% in the spring after a 8.1% gain in the first quarter, when enthusiasm for the new pro-business Trump administration may have triggered a jump in corporate spending.”

Companies have invested more in equipment and computers since the beginning of the year, but many corporations also reduced their inventory for the first time since 2011.

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Keep in mind that the president said he would allow expensing such items, and there is still talk in tax reform plans of making such purchases retroactive to the first of this year.  As Jim Clayton told MHProNews, “MH Community and Manufacturing Operators – along with others in business – get to expense expansion cost under the president-elect’s proposals. WOW! What a nice surprise!

However as spending increased, and while wages are rising modestly, inflation is also slowing.

Although growth is solid, the lack of wage pressure buys the Fed plenty of time, and works with a very ‘gradual’ tightening cycle,” said Alan Ruskin, global head of G10 FX strategy at Deutsche Bank in New York. “There is more here for the Fed doves than the hawks.”

Inflation slowed to an annual rate of 0.3% in the second quarter from 2.2% in the first, as measured by the personal-consumption expenditures price index, or PCE,” per MarketWatch.

But what those analysts failed to mention is what MHProNews reported, namely, that the drop in energy and fuel prices has also slowed inflation.  These are areas where media bias can creep in, even into economic reports.

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MHProNews strives to keep media tilt in mind, to help sort out the unstated agendas behind various reports. Full Measure’s Sharyl Attiksson’s media bias chart, above, is useful as one tool in sorting out the agendas behind various headlines and news sources. MHProNews uses others too.

Regular Daily Business News readers may recall recent articles that look at the issues of minimum wage and a move toward supply and demand equilibrium.

Home Building and Residential Investment Drop

According to MarketWatch home building and residential investment are still down even in this growing economy. This could be due to a number of factors ranging from a busier winter building season due to severe weather delays prior, difficulty finding inexpensive lots, and lack skilled workers, per Market Watch.

Home builders also scaled back investment by the most in seven years after piling money into new properties for two quarters in a row.

Residential investment sank 6.8%, partly reflecting weather patterns that led to higher than normal construction in late winter and less home building in the spring.”

The MH Option In Meeting Housing Demand

While we’re seeing a slight uptick over the summer the number of homes being constructed are not close to meeting the demand for housing.

Manufactured homes once again poses a solution to many of the problems seen in the current housing market.

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  • exclusive commentary by DJ Pendleton of the Texas Manufactured Housing Association on the placement issue, linked here;

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  • plus the hottest read on the site today, an analysis linked from the image below – all point to the possible opportunities – and road blocks – that keep manufactured home sales from rising rapidly into the hundreds of thousands of new homes per year.

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The real economy remains in good shape,” said Andrew Hunter, U.S. economist at Capital Economics.

Things are definitely looking up for the stock market so far under the Trump Administration. Stocks are up, businesses are investing in equipment and consumers are spending more – it’s definitely the start of things finally heading in the right direction. # #

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz for Daily Business News on MHProNews.

 

 

 

 

 

 

UFPI Acquires Distributor of Wood Products for MH

June 21st, 2016 Comments off

ufpi__creditA subsidiary of Universal Forest Products, Inc. (NASDAQ:UFPI) is acquiring Idaho Western, Inc., a Nampa, ID distributor of products for the manufactured home (MH) and recreational vehicle (RV) industries as well as for building materials retailers.

UFPI’s Caldwell, ID facility, which also supplies wood and wood products to the MH and RV industries, will be consolidated into Idaho Western, supplying customers in the Northwest with products ranging from lumber and siding to doors and plywood. Founded in 1978, its annual net sales are approximately $21 million, according to nasdaq.

This strategic acquisition will allow us to bolster our foothold in the manufactured housing and retail markets by expanding our product offering and our geographic reach,” said Universal Forest Products CEO Matthew J. Missad.

Headquartered in Grand Rapids, Mich., UFPI is a component supplier to the MH and RV industries. MHProNews tracks its daily stock report on our Daily Business News website. UFPI’s stock closed up in yesterday’s (June 20) session +1.74 percent at $88.40. ##

(Photo credit: Universal Forest Products, Inc.)

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

Sun Communities Closes on Acquisition of Centerbridge’s Carefree Communities

June 10th, 2016 Comments off

sun homes coming soon signUpdating a story MHProNews last posted March 22, 2016 regarding the acquisition of Carefree Communities, Inc. from Centerbridge Capital Partners II, LP for $1.68 billion, Sun Communities, Inc. (NYSE:SUI) announces it has closed on the transaction.

Sun issued Centerbridge $225 million in shares of common stock priced at $67.57 per share, and $1.455 billion in cash, one billion of which was immediately applied to the seller’s outstanding debt to make the transaction totally debt-free.

With the acquisition, according to nasdaq, Sun adds a total of 103 manufactured home (MH) and recreational vehicle (RV) communities to its portfolio, 27,554 home sites comprised of 9,829 developed MH sites and 17,725 RV sites. Additionally, there are 396 MH sites and 2,586 RV sites suitable for development. Most of the communities are in Florida and California.

Based in Southfield, Michigan, Sun now owns and operates 337 communities with 117,000 home sites in 29 states and Ontario, Canada. ##

(Image credit: Sun Communities, Inc.)

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

Sun Leaves Diseased Tree, Declares Quarterly Dividend

December 28th, 2015 Comments off

Sun_CommunitiesFollowing a story MHProNews posted Dec. 17, 2015 regarding a diseased tree that Sun Communities (SUI) was ordered to remove from Water Oak manufactured home community in Lady Lake, FL, villages-news reports as of Sunday, the tree was still there.

Special Magistrate Valerie Fuchs ordered Sun to remedy the tree or face a $250 a day fine for each day beginning Christmas the problem was not resolved. The homeowner who lives under the tree has reported damage to the house.

Meanwhile, nasdaq informs MHProNews that Sun has set Dec. 29, 2015 for a cash dividend payment of $0.65 per share payable to shareholders as of Jan. 15, 2016, marking the eighth quarter that the company has paid the same dividend. The current stock price of $68.83 will yield a dividend of 3.78%.

Sun sold for $68.83 per share the last trading day, representing a drop of -5.61 percent from the 52-week high of $72.92, and a 14.15 percent increase over the stock’s 52-week low of $60.29. ##

(Image credit: Sun Communities, Inc.)

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

New Home Sales Post Strong Numbers for October

November 28th, 2015 Comments off

new home construction  housingwire creditAccording to nasdaq, data released by the Census Bureau and the Department of Housing and Urban Development indicate sales of new, single-family homes rose 10.7 percent in October to a seasonally-adjusted annual rate (SAAR) of 495,000 units, up from September’s revised numbers of 447,000. The rate is a 4.9 percent improvement from last year at this time.

New home inventory for sale, up 1.3 percent from the previous month as well as the highest level this year, was 226,000 units at the end of October, equal to a 5.5 months supply at the current pace of sales. The median sales price of a new single-family home fell six percent from October 2014 to $281,500.

These numbers are in contrast to other housing figures: housing starts fell 11 percent in October, existing home sales dropped 3.4 percent, and the National Association of Home Builders (NAHB) tells MHProNews homebuilders sentiment slipped three points to 62.

However, the bottom line indicates this year has been overall good for the housing market, probably the best since 2007, as the economic environment and employment picture improved. Despite the likelihood of a hike in interest rates in the near future, rising consumer confidence, the better job market, moderating home prices, rising household formation and rising rentals point to continuing momentum in the demand for housing in 2016. ##

(Photo credit: housingwire-new home construction)

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

Sun Closes Public Offering

November 9th, 2015 Comments off

sun communities as of 12-22-2012 owns palm creek golf and rv esort communityFollowing a story MHProNews first posted Nov. 3, 2015 regarding a public offering of 3,250,000 shares of Sun Communities, Inc. (SUI) common stock at $65.00 per share, the offering is now closed, after an additional 487,500 shares were sold to the underwriters as part of their option.

The company estimates net proceeds from the underwriting will be roughly $233.1 million after underwriting and selling expenses are deducted, according to nasdaq. Sun intends to use the funding to pay down current revolving loan debt, acquire additional properties and for general corporate purposes.

As MHProNews knows, Sun owns and operates 248 manufactured home and recreational vehicle communities comprised of 92,500 sites in the U. S. ##

(Photo credit: Sun Communities, Inc.)

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

UFPI has Bright Future, but Short Term Risks

September 24th, 2015 Comments off

ufpi__creditMHProNews has learned from Nasdaq that Universal Forest Products, Inc. (NYSE:UFPI) has bright prospects for future growth but is dependent in the near term on housing construction, which is not consistent.

The company earns top grades for expanding and improving its product line, and expects to generate sales of $3 billion by 2017, including $250 million from a new product line. This year the company expects revenues of $190 million in new product sales, $100 million from five acquisitions from last year, and is poised to gain from rising demand in commercial construction.

UFPI’s retail building material sales are expected to reap the benefits of increased home improvement spending, while the housing and construction division will profit from new products and increased distribution capacities in the manufactured housing industry, to which it is a component supplier. The company will also gain from housing starts in the residential construction sector, providing that industry continues to expand.

However, rising costs and expenses, customer concentration and dependence on housing markets for its extensive line of wood products exposes it to risks, as does unfavorable movements in foreign currencies. As a result, Zacks has issued a hold rating on the stock.

In today’s trading UFPI closed down -1.24 percent at $59.62. ##

(Photo credit: Universal Forest Products, Inc.)

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

 

Volatility has Hit Patrick Industries, Inc Stock

September 10th, 2015 Comments off

patrick_ind_logoFollowing MHProNews‘ story yesterday (Sept. 9. 2015) about the sale of $6.38 million worth of Patrick Industries, Inc. (NASDAQ:PATK) stock on Sept. 4, 2015 by Tontine Capital Partners LP, the company continues to hold 12.78 percent of Patrick’s market cap, equivalent to two million shares.

The significance of this unloading indicates Tontine may be pessimistic about the company and its stock price. As a result, octafinance, noting the stock has declined 21 percent in the last 125 days, has rated the stock as a “sell.”

Although Gendell Jeffrey L., the most bullish institutional investor, has sold approximately 113,000 shares of Patrick since last November, as MHProNews has reported, he continues to hold 2.57 million shares, or 16.56 percent of the portfolio.

Meanwhile, Patrick’s President and CEO, Todd M Cleveland sold 100,000 shares, also on Sept. 4., at $44.51 per share, for a total yield of $4,448,947.50, according to insidertradingreport. This report says the stock has rallied 54.29 percent in the last 52 weeks.

Patrick is a component supplier to the manufactured housing and recreational vehicle markets.##

(Image credit: Patrick Industries, Inc.)

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