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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (7906)	7/30/1999 7:24:00 PM
From: Bob Rudd	Respond to of 79285

jeffrey: Quick take on shift to stick built form MH..that may be some of it, but industry has been upscaling their offerings to meet demand for better stuff. I suspect demand for product and low entry barriers, perhaps aided by industry financing, increased dealer count and thus total inventory in field. Rate jump, though minor, increased floorplan costs, and hit marginal demand. Another factor could be lack of places to put the units...there's NIMBY factor on zoning for MH overhanging from "trailor trash" perception that can create barriers to rapid sales expansion in some areas. Another possible factor is that intense cyclical hits in the past may have caused dealers to cut back real quick at the hint of a downturn. I bet a lot of experienced dealers locked up their purchase orders as the rates rose...not because demand slowed, but because of fear that it might. bob