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

To: Bob Rudd who wrote (8096)	8/30/1999 1:05:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78830

Bob, yes there surely is some disagreement about the benefits or pitfalls for vertical integration (selling retail) for these mfg. home builders. Regarding FLE in particular, we have these concerns: retail not being a high-return business, retail being over stimulated by manufacturers wanting to increase market share, FLE retail purchases (16) diminishing FLE cash, belief by some FLE managers that retail is not FLE's business. Offsetting arguments are FLE concern they have to meet competitors' push for shelf space.(CHB took away FLE's no. 1 market share spot.) Plus FLE does have a history of exiting business that just don't work out (FLE Credit). This will all take time to resolve itself. Like possibly years. Meanwhile if I can have patience to wait, and can collect my 3.4% dividend... sometime in the next few years, I've got a shot at seeing FLE double in price. And I'm also confident - although not necessary more correct or correct at all-g- with Clayton Homes at current price.