SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Cavalier Homes (CAV)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Marco Polo who wrote ()2/9/1997 6:01:00 AM
From: Dan   of 67
 
Two conflicting factors appear to drive CAV prices. On the positive side, CAV is strong financially, has strong fundamentals in that it builds modular homes, an area which should experience substantial growth at the expense of stick built homebuilders.

On the negative side, stock prices of homebuilders are interest rate sensitive. Higher interest rates increase the ultimate cost to homebuyers thus driving unit volume down.

A look at CAV's PSR and sales performance between 1987-1991 shows a decrease of about 30% in sales. This was accompanied by a PSR drop to about .06. Current PSR of CAV is about .37. Based on this the price of CAV could drop to about $ 2 or 3 if the homebuilding industry goes on its butt.

Does anyone know anything about the specific causes of the 1987/91 debacle or have any thoughts about how the above factors will play out if interest rates rise.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News