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

To: John Stichnoth who wrote (6360)	3/19/1999 11:24:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78485

Clayton Homes receivables. I don't have the numbers in front of me, but you want to check to see if these are the receivables Clayton has been purchasing from third parties. This is a deliberate strategy, to purchase a block of receivables, then add value and securitize them. Its worked so far. As for accounting, if Clayton had the problem Oakwood did last year, it would have blown up on them by now. When you read Clayton management for a while, you find they are pretty conservative people. I remember Jim Clayton once on a conference call drawling "At Clayton, we don't like non-cash earnings." Look at a long term chart of Clayton with an earnings line (like the charts Peter Lynch uses in his books). The conclusion should be blindingly obvious. JJC