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Posts Tagged ‘third avenue value’

Third Avenue Buys Into Three New Stocks

September 26th, 2013 Comments off

The chairman of the board of Third Avenue Assets Management, Marvin Whitman, announcing the company’s third quarter portfolio update, has acquired a 20 percent stake in Cavco Industries, Inc., a $510.4 million market cap with stock up over 25 percent in the last 12 months. He purchased 1,809,108 shares when the share price averaged $54 in the second quarter, accounting for 20.47 percent of all outstanding shares. Whitman previously sold his 50 percent share of Fleetwood Homes, Inc. to Cavco, as MHProNews reported here June 14, 2013, garnering Cavco stock in the exchange at that time. Noting Cavco is essentially debt free, Whitman says the company posted very strong results for the second quarter, and thinks “a considerable upside still exists for Cavco Common,” as reported by nasdaq.com. In a letter to investors, Whitman depicts three factors in hi stock analysis: “First the creditworthiness of the company issuing the equity; second, the ability of the issuer to grow net asset value (“NAV”) (or its surrogate book value) over the intermediate to longer term; and, three, the price of the common stock relative to NAV. As MHProNews knows, Cavco is the second largest producer of manufactured homes and modular homes and buildings in the U. S. The company’s Third Avenue Value Fund (TAVFX) closed Sept. 24 -0.07 percent at $57.62. He also purchased 823,730 shares of Total SA, the world’s fifth largest publicly-traded integrated oil and natural gas company; the company also bought 269,034 shares of Pargessa Holding SA, which owns operating companies in a variety of industries.

Cavco Completes Acquisition of Fleetwood

June 14th, 2013 Comments off

Phoenix, AZ-based Cavco Industries, Inc., which owns 50 percent of Fleetwood Homes, Inc., has agreed to acquire the other 50 percent from Third Avenue Value Fund and an affiliate, according to nasdaq.com. Cavco will issue common stock to Third Avenue in consideration as per their original 2009 agreement in forming Fleetwood, which also includes Palm Harbor Homes, CountryPlace Mortgage, and Standard Casualty. Joseph Stegmayer, Cavco Chairman, President and Chief Executive Officer said, “We believe that the opportunity to obtain full ownership of these operations is attractive at this time. Although the manufactured housing industry remains challenged by overall economic conditions, we are encouraged by recent reports of improved general housing demand, consumer confidence, and unemployment levels. We have been fully responsible for operating the Fleetwood Homes business since August 2009 and the Palm Harbor Homes and related finance and insurance businesses since 2011. The opportunity to now consummate full ownership is clearly beneficial financially and will also eliminate certain administrative activities required of a joint venture.” As MHProNews knows, Cavco is the second largest producer of manufactured homes in the country, and also makes park model homes, vacation cabins and modular homes.

(Image credit: Cavco Industries, Inc.)

Patrick Soars, Nobility Falls, Indexes Waffle

June 18th, 2012 Comments off

While the election in Greece produced a pro-bailout party win, concerns remain regarding the overall debt crisis in Europe, leading U.S. Stocks to close mixed. CNNMoney says the Dow Jones Industrial Average lost -25.35 points, -20%, to close at 12,741.82. The Nasdaq gained +0.78% to 2895.33, and the S&P moved up +0.14% to 1344.78. The Yahoo! Finance Manufactured Housing Composite lost -0.04 percent to close at 1010.9. Tracked housing stocks closed mixed, but Patrick Industries spiked +9.61 percent, +1.24, to close at 14.14, while Skyline Corp. notched a +5.92% gain. Nobility Homes lost the most of our tracked stocks, dropping -5.78%, -0.38, to close at 6.20. Affiliated Managers Group 103.79 -0.23 (-0.23%). Cavco 47.02 -0.39 (-0.82%). Clayton Homes, Vanderbilt Mortgage and Finance, as well as MH home-building, lending and other housing suppliers parent company Berkshire Hathaway 123,300 -74.00 (-0.06%). Champion, Liberty Homes and Palm Harbor Homes all remained unchanged. Deer Valley 0.78 +0.02 (+2.50)%. Drew Industries 27.23 -0.34 (-1.23%). Equity Lifestyle Properties 68.73 -0.09 (-0.13%). Louisiana Pacific Corp. 10.01 +0.20 (+2.04%). Skyline Corp. 4.47 +0.25 (+5.92%). Sun Communities 43.06 +0.07 (+0.16%). Third Avenue Value Fund (6-15) 43.37 +0.57 (+1.33%). UMH Properties 10.08 +0.07 (+0.70%). Universal Forest Products, Inc. 38.05 -0.26. (-0.68%).

(Graphic credit: CNNMoney and RealTick)

HUD Code and MOD Stocks: Buy Now!

June 15th, 2012 Comments off

With manufactured housing increasing production nine consecutive months, as MHProNews has noted previously, smallcapnetwork says the time might be ripe to get into the manufacturing and modular housing market. Cavco Industries (NASDAQ:CVCO) reports net sales for the entire fiscal year 2012 hit $443,066,000, an increase of 156% over last year, and net income surged $4.07 million to $29.7 million. The gains are magnified by the acquisition of Palm Harbor Homes through its Fleetwood Homes subsidiary, which is half owned by Third Avenue Value Fund. The stock, up 19.7% since Jan. 1 and 34.1% over the past five years, gained 3.63% to 47.64 Thurs. Cavco produces manufactured and modular housing, park model homes and vacation cabins.
Drew Industries (NYSE:DW) provides a wide range of structural and interior components to the RV and manufactured housing industries. Sales rose 32% to 223.6 million in the first quarter 2012, producing net income of $11.1 million. In the RV division sales were up 29%, and 26% in the manufactured homes segment. On Thurs. the stock gained +0.70% to close at $27.20. The stock has gained 10.9% since Jan. 1, and is up 14.3% over the past year.

(Image credit: FotoSearch clip art)

Cavco’s Earnings Skyrocket

February 3rd, 2012 Comments off

AZCentral tells MHJProNews.com that Phoenix-based Cavco Industries, Inc. reported at its earnings webcast Feb. 2 its profits mushroomed compared to last year. Net income for the third quarter 2012 which ended Dec. 31 was $1.68 million, or .24 cents a share, as opposed to $24,000 for the same period a year ago, or one-half a cent a share. Cavco attributes the increase to its purchase of Palm Harbor in 2011 by Fleetwood Homes, Inc. Fleetwod is owned half and half by Cavco and Third Avenue Value Fund. Cavco is the second largest producer of manufactured homes in the U.S., marketing park models, modular homes, vacation cabins and commercial buildings. Cavco President and CEO Joe Stegmayer is also Chairman of the Manufactured Housing Institute (MHI).

(Photo credit: MHProNews.com/Joe Stegmayer)