NYSE: Fleetwood delisted, Monaco not in compliance

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John Canfield

John Canfield

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Things are getting really bad - I'm not a doom-sayer, but numbers speak for themselves.

Fleetwood (FLE) recently was delisted from the NYSE (it is now OTC at $0.07 a share) and Monaco (MNC) is not in compliance with NYSE requirement of maintaining a share price of at least $1.00 (they closed at $0.61.)

Winnebago (WGO) is hanging in there (there as in the NYSE) with a share price of today of $6.69 (down from about $22 spring '08.)

I hope all of these guys can survive  :'(
 
Me, too...I own a few hundred shares of Fleetwood and a Fleetwood motorhome.  I own some Coachmen shares as well, but they don't make RVs anymore...they sold that division to Forest River.  Gulfstream is not publicly held...I have considered buying WGO stocks but will wait a bit longer.
 
I hope they survive too.  Now if they were banks with the right friends in Washington they would be getting taxpayer money apparently with no strings attached.
 
John Canfield said:
Fleetwood (FLE) recently was delisted from the NYSE (it is now OTC at $0.07 a share) and Monaco (MNC) is not in compliance with NYSE requirement of maintaining a share price of at least $1.00 (they closed at $0.61.)
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Monaco announced today that it was notified Jan. 6 by letter by the New York Stock Exchange (NYSE) advising that its stock faces a possible delisting by the exchange because average price per share was not being maintained above $1 per share.  It closed yesterday at $1.58.

They're also in trouble  because "average market capitalization over a recent 30 consecutive trading day period was below the NYSE minimum quantitative continued listing criteria of $25 million."

That doesn't sound good at all.  :mad:
 
As far as I am concerned, being listed on the NYSE is a big waste of money in this economy. As long as Fleetwood and/or Monaco are able to keep their creditors from outright rebellion and maintain a spending level to get them thru this period, nobody should care what the exchanges are doing. The stocks are where they are and the companies aren't going to be selling more in the foreseeable future. so why spend all the listing fees ???
 
Bernie,

Even though I agree somewhat with your comment about the NYSE listing, public companies like Monaco cannot exist without people buying their shares of stock.  That's how they get equity to support their manufacturing operations.  Without that equity how are they going to raise money in an economy in which people are not buying their products?  The fact is, the NYSE and other exchanges are needed to make this equity exchange possible.  And, they in turn, must have rules their member firms need to follow.  Otherwise, junk rules.  Look what has happened because exchange rules were allowed to be made more lax and many leaders who could have made a difference weren't strong enough to do so.  It's a really tough situation and I'll bet a lot CEOs are not sleeping very well these days wondering if they will be able to have their company survive as a viable entity.  It sounds good to make statements like that, but the reality is really stark these days.

ArdraF
 
The exchange which handles their stock is the least of their present worries, I think.

For the most part, none of these companies are issuing new shares now (except maybe executive stock options?), so they get nothing from the equity markets anyway. Others are buying and selling existing shares, but that doesn't provide any capital to the company.  In fact, processing registration changes costs them money. Besides, their shares trade just a well on the OTC market, so no need to be on the NYSE. It's mostly a status thing, playing with the big boys.  Fleetwood stock didn't even hiccup as it moved from NYSE to The Pink Sheets (OTC) over one weekend. 
 
RV Roamer said:
The exchange which handles their stock is the least of their present worries, I think....
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Exactly my perspective - the delisting (Fleetwood) and not in compliance (Monaco) is more of an indicator of financial health than anything else. Yesterday was the first time ever I looked at the stock price of the big three and I was frankly amazed that Monaco wasn't doing better, although I had nothing concrete to base that feeling on.  Fleetwood being at 0.07 a share didn't surprise me at all due to their heavy corporate debt load.
 
These companies are all in negative cash flow situations.  Only those with the cash reserves or ability to favorably structure debt to finance that negative cash flow will survive 2009.  Those already leveraged will not find that financing and will cease to exist.

Those that can survive will be in a stronger market position when demand returns, although I don't believe we'll see the sales figures the industry posted in 2006 for a long, long time.  There is a significant overcapacity in the RV market and this crisis will bear that out and return the industry to a more reasonable size (what "should" be happening with auto's right now as well).

As Gary said, where the stock actually trades is largely irrelevant, but clearly investors do not believe these companies are solvent ongoing concerns.

 
It's not a bad time to pick up 1000 shares of Fleetwood, though. You are only risking the price of a  dinner for two (about $70.00)  and if they do survive, you might make a tidy bundle.
 
Greetings:

Just curious.  What do you think Fleetwoods' chances are of coming back from their current financial problems?  An old marketing theory says that in a difficult market, you want to be either the biggest or the smallest company.  If that is true, we can expect Winnebago to come back stronger than ever in 3-4 years.  RIGHT???
 
Fleetwood has lost money in each of the last three fiscal years (probably much longer than that, but three years data was all I could access quickly).  Over the past four quarters the company has lost approximately $83 million.  Last quarter cash flow from operations was negative $26 million.

For the most recent quarter (ended October):
Total debt ratio (total liabilities/total assets) = 93%
Long-term debt to equity ratio = 4.7 times

The company is losing money, has not turned a profit in several years, and has extremely high financial leverage.  At the rate they are losing money and burning cash, they probably will not survive another year.

If the economy were to turn around quickly, perhaps they can survive (although they were not profitable when the economy was strong).  But, I am not betting on a quick turnaround.

For $70 you can get a nice dinner for two or load up on Fleetwood stock.  I would go for the dinner.

Delbert

 
RV Roamer said:
It's not a bad time to pick up 1000 shares of Fleetwood, though. You are only risking the price of a  dinner for two (about $70.00)  and if they do survive, you might make a tidy bundle.
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Gary, you might want to be careful about buying too many shares.  They just may send you the keys to the place :D
 
RVcyclist said:
...  But, I am not betting on a quick turnaround.
Click to expand...

That's the way I see it - my guess it will take the global economy (like it or not, we are interlinked to a great degree) a few years to recover to the good old days of a Dow 13000.

If Fleetwood survives, it will be because somebody pulled a rabbit out of the hat.
 
As an investment, buying Fleetwood shares is right up there with lottery tickets. It's a gamble, not a financial strategy. Their chances are slim at best.  Too bad, cause they have a few good products and a few brands that are even profitable, but just way too much baggage in a weak market. And in this economy, nobody is likely to rescue the good parts if they fail.

 
If Fleetwood liquidates, there is always a chance that another company (or private equity firm) will buy some of the assets including the profitable brands.  There are profits to be made when the economy turns around.  Given that the assets may be sold for penny's on the dollar, someone may be willing to take a chance.  And, if they by the assets and not the company (i.e., the stock), they will not have the drag of the liabilities. 

Let's hope something positive comes out of this.  It will be good for the industry, but more importantly, it will be good for the workers who face unemployment.

Delbert
 
I wonder if that includes pre-approved warranty work. I have no idea if Monaco has such a pre-approval requirement of their dealers.
 
Tom - no clue  ??? 

This is sort of eerie as I overheard a service writer many months ago (over a year ago?) tell the owners of an Alpine (Western RV) that they have to pay this dealer for warranty work and they will need to seek reimbursement from Western RV.  Some Alpine owners were in denial for many months on a particular forum that Western was in deep doo-doo.  We know the rest of the story  :(
 
John,

I bring the pre-approval issue up because of my experience in the boating world. Having bought the floating equivalent of a Prevost, I found that the manufacturer was refusing to pay for pre-approved warranty work. I was in Japan when Chris called me as she was working with the yard to get the boat ready for some time afloat on my return. I ripped the factory warranty guy a new rear end on the phone.

I didn't tell him that I'd done business with the boat yard for 20 years, and there was no way I was going to let the guy be short changed, nor was there any way he wasn't going to release the boat irrespective of whether he was paid or not. But, the factory guy arranged for me to receive a fax'd copy of a check sent to the boat yard before I let them off the hook.

I got off the plane and we went boating  ;D  Of course, the economy was a little different then.

 
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