Investors do not like uncertainty, but maybe they like controversy?
That notion sounds absurd, but the day after Fleetwood Enterprises Inc. announced plans to sue Coachmen Industries Inc. over the right to use the Coleman trademark, both companies’ stocks closed sharply higher in New York Stock Exchange (NYSE) trading on Tuesday (Feb. 10).
Fleetwood’s shares gained $1.92, or 15%, on Tuesday to close at $14.52, a new 52-week high.
Meanwhile, Coachmen’s stock did not set a new high but its shares gained $1.05, or 6%, on Tuesday to close at $18.75. Coachmen’s 52-week high is $20.19.
A more logical explanation for the increases was an article in Tuesday’s Wall Street Journal about Fannie Mae, the government-sponsored mortgage-finance company, planning to announce easier terms on loans for manufactured homes and other factory-built housing.
Fleetwood is a major manufactured home producer and Coachmen calls itself the leading modular home builder.
The story about Fannie Mae likely explains why Skyline Corp., which derives two-thirds of its revenue from manufactured homes and one-third from towable RVs, saw its stock set a new 52-week high of $38.71 on Tuesday. Skyline’s stock gained $1.54, or 4%, on Tuesday to close at $38.50 in NYSE trading Tuesday.
RV and manufactured housing industry supplier firm Drew Industries Inc. also gained 95 cents on Tuesday to close at $30.15, after setting a new 52-week high of $30.35 earlier in the trading day.
There was no explanation for the sharp rise in the stock of Thor Industries Inc., the leading manufacturer of towable RVs and builder of some midsize buses.
Thor’s stock soared $3.46 a share, up 11%, on Tuesday to close at $33.86. Earlier in Tuesday’s session, Thor stock reached a new 52-week high of $33.95, its first new one-year high since a 2-for-1 stock split on Jan. 26.