“Thank you. And before we begin, please be advised that comments made during this conference call by management will contain forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations or assumptions about Cavco’s financial and operational performance, revenues, earnings per share, cash flow or use, cost savings and operational efficiencies,” said Mark Fusler, Director of Financial Reporting for Cavco Industries (CVCO), per the Motley Fool’s official earnings call transcript.
“Some factors that may affect the company’s results include, but are not limited to the risk of litigation or regulatory action arising from the subpoenas we received from the SEC, the risk of potential litigation or regulatory action arising from the SEC related internal investigation and its findings, potential reputational damage that Cavco may suffer as a result of matters under investigation, adverse industry condition, our involvement in vertically integrated lines of business, including manufactured housing, consumer finance, commercial finance and insurance, market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing,” said Fusler for Cavco.
“This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast Tuesday, February 5, 2019. Cavco undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the date of this conference call, except as required by law,” Fusler stated before turning the call over to Daniel L. Urness, President and Acting Chief Executive Officer of Cavco.
One could unpack those disclosures at great length and depth.
But what was not directly stated was that the number of shareholders plaintiffs’ attorneys doing “investigations” of Cavco and CVCO stock has mounted. It’s about a dozen known firms, to date – and while it is implied by Fusler – it is not bluntly stated.
Nor was it directly said that Cavco continues to take several preparatory moves, per legal sources, that make it clear that they expect a potentially protracted legal battle over the Stegmayer-SEC subpoena reported issue. That too may be construed as implied, but was not stated.
The Curious Case of Cavco and Joe Stegmayer?
There are communications that have been sent to MHProNews as news tips that have occurred since he stepped down as chairman and CEO of Cavco that some might interpret as Stegmayer exercising more leadership at Cavco than his current job title may imply.
The fact that Stegmayer is still Chairman of the Manufactured Housing Institute (MHI) Executive Committee ought to be of interest too.
Why? Several possible reasons, per sources that include, but may not by limited to the notion of “derivative liabilities.” We will explore that topic in an upcoming report.
But look again at this part of Fusler’s disclaimer statements: “...market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing…”
Which of those plaintiffs attorneys investigating Cavco have begun to uncover the various concerns about alleged market rigging or related that has been raised by MHProNews, MHLivingNews, MHARR and others? Which shareholders investigators have connected the relevant dots between Cavco, Clayton, and MHI?
Or who at the SEC is doing so?
How many of those shareholders attorneys or the SEC have had staff pouring over reports published here or elsewhere about Stegmayer, Cavco, Clayton, and MHI?
Without revealing sources and methods, it is common-sense to think that such research is the underway. If so, doesn’t that mean that Cavco’s legal bills and exposure will mount?
But the market’s investors are apparently beginning to regain a measure of confidence in Cavco. They may – correctly or incorrectly – think the worst is over for CVCO, and that the stock is now “a value” in the Warren Buffett sense of the term.
The storm brewing over Cavco could disrupt more than what some in MHVille, the investment community – or even in Phoenix, Knoxville, and Arlington – may currently believe. MHProNews will do follow up reports that will continue to unpack what is occurring in the developing case.
Until the next report, note as a disclosure that MHProNews’ management holds no position in any tracked stock in our evening markets report, nor plans to open a position in the next few days. Some prior reports can be accessed from the text/image box below.
What’s Coming at Cavco Industries (CVCO), Plus Manufactured Housing Industry Stock Updates
But we are keenly interested. As the #1 read, and pro-sustainable growth manufactured housing trade media, plus consulting, and professional services provider, we wonder aloud why certain steps have not yet occurred at MHI, their member companies, including Cavco, Clayton, 21st Mortgage and others haven’t already occurred?
Stay tuned, because more is almost guaranteed to be revealed. And if so, will it once more send shock waves though Cavco, or others? “We Provide, You Decide.” © ## (News, analysis, and commentary.)
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HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses | Manufactured Housing Association Regulatory Reform
Washington, D.C., February 4, 2019 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured home production declined again in December 2018.
“The Illusion of Motion Versus Real-World Challenges” | Manufactured Housing Association Regulatory Reform
Motion – or, more accurately, activity – in and of itself, is not necessarily synonymous with, or equivalent to, realprogress, or, in fact, any progress at all.
Independent National Manufactured Housing Post-Production Association Takes Major Step | Manufactured Housing Association Regulatory Reform
Washington, D.C., January 8, 2019 – The National Association of Manufactured Housing Community Owners (NAMHCO), a new, independent association representing a key manufactured housing industry post-production constituency, has announced a major step in its initial organization and the start of national-level advocacy activities to better and more effectively represent the post-production sector in Washington, D.C.
President Trump Announces Nominee Dr. Mark Calabria to Become New Director of Federal Housing Finance Agency | Manufactured Housing Association Regulatory Reform
President Trump, on December 12, 2018, announced the nomination of Dr. Mark Calabria, currently the Chief Economist for Vice President Mike Pence, to become the new Director of the Federal Housing Finance Agency (FHFA), when the term of current FHFA Director, Melvin Watt, expires in January 2019.
MHARR Calls on HUD To Remove Zoning, Placement and Consumer Financing Barriers to Manufactured Homes | Manufactured Housing Association Regulatory Reform
Washington, D.C., October 11, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR), in written comments filed with the U.S. Department of Housing and Urban Development (HUD) on October 11, 2018 ( see, copy attached) has called on HUD to promote zoning and placement parity for federally-regulated manufactured homes as part of the Department’s plan to amend its regulations for Affirmatively Furthering Fair Housing (AFFH).
MHARR Exposes GSES’ Failure On Chattel Financing Before Congress | Manufactured Housing Association Regulatory Reform
FOR IMMEDIATE RELEASE (202) 783-4087 Contact: MHARR Washington, D.C., September 27, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR), in a submission (copy attached) to the House of Representatives’ Financial Services Committee in conjunction with a September 27, 2018 oversight hearing on regulation of the two “Government Sponsored Enterprises” (GSEs) – Fannie Mae and Freddie Mac – strongly criticized the Federal Housing Finance Agency (FHFA), for failing to implement federal law and, instead, sanctioning the GSEs’ continuing discrimination against lower and moderate-income American consumers seeking to purchase manufactured homes through personal property, or chattel loans.
Independent National Manufactured Housing Post-Production Association Takes Major Step | Manufactured Housing Association Regulatory Reform
Washington, D.C., January 8, 2019 – The National Association of Manufactured Housing Community Owners (NAMHCO), a new, independent association representing a key manufactured housing industry post-production constituency, has announced a major step in its initial organization and the start of national-level advocacy activities to better and more effectively represent the post-production sector in Washington, D.C.
Washington Post Underscores Need for An Independent Post-Production Association
A recent article in the Washington Post regarding the HUD manufactured housing program and the reassignment of former program administrator, Pamela Danner, vividly highlights the glaring need for a new, independent, collective, national trade association to more effectively represent the industry’s post-production sector.
MHARR Recommending Independent Collective Representation for Post-Production
Washington, D.C., November 15, 2017 – The Board of Directors of the Manufactured Housing Association for Regulatory Reform (MHARR) has authorized the public release of a comprehensive internal study by the Association of the past, present and future representation of the post-production sector (PPS) of the federally-regulated manufactured housing industry.
