RV stocks dip under the dollar mark

by John Paul (jpaul@wsbt.com)

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Fleetwood RV and Coachmen RV closed under the dollar mark on the New York Stock Exchange on Thursday, November 20, 2008. (WSBT photo)

By WSBT News1

Story Created: Nov 20, 2008 at 6:23 PM EST

Story Updated: Nov 24, 2008 at 12:05 PM EST

ELKHART COUNTY — The closing bell showed two RV manufacturers — Fleetwood and Coachmen RV — closed under the dollar mark on the New York Stock Exchange Thursday. Stock watchers say the low numbers are cause for concern.

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Officials say based on the numbers, it's not looking good for either company.

However, some are staying optimistic, believing each time the RV industry declined, it rebounded stronger than before.

After the closing bell, the numbers on Wall Street paint a grim picture for the two manufacturers.

"Both stocks are down over 90 percent down from their high point from last year," said Tim Loughran, finance professor at Notre Dame.

Fleetwood traded most of the day around 16 cents, Coachmen at 60 cents.

"Anytime the market moves from $6.40 down to only 60 cents, it's a concern," said Loughran.

With stocks down significantly, officials from Fleetwood declined WSBT News' request for an interview. Instead it issued a statement, indicating: "At this point, we're in a quiet period because we'll be announcing our quarterly results this coming Tuesday."

Coachmen RV officials said, "You will get occasions where stock will trade over and under the intrinsic value depending on market value and other intangibles."

Fuel prices are an example.

"High gas prices really hurt both of these companies," said Loughran.

Officials say history repeats itself. Similar problems plagued the industry during the late 70s.

"Nobody can say that it's not tough times," said Al Hesselbart of the RV Hall of Fame. "Comparatively it's not as bad as the times around early 1980, but that doesn't mean there's anything good about it."

While a Coachmen RV spokesperson says the company is reducing costs and building its consumer base, Loughran looks at positives.

"They are selling product, they are publicly traded," said Loughran. "Gas prices are lower."

"The market may be wrong," said Loughran. "The market has been wrong in the past."

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