Penny Gamblers Paradise

[stock2windaily]

COA at 52 Week Low!!!!!!!!!!!!

http://www.indystar.com/apps/pbcs.dll/article?AID=2009904060305

VOLUME ALERT!

Coachmen and Elkhart down but not defeated
Posted: April 6, 2009Post a CommentRecommend E-mail Print Share Del.icio.us Digg Reddit Yahoo Google A A Unveiled just a couple of years ago, Coachmen's RV marketing slogan -- "Life should be so easy" -- has a painful ring to it these days in Elkhart.

Coachmen, with its Dalmatian-dog logo, is one of the most recognized brands in the recreational vehicle and trailer industry that has been so important to the development of the Northern Indiana community.


Now, though, Coachmen Industries is the story of a company suffering in a town that's suffering. But it's also a story about how the company and the region are trying to battle back against negative perceptions and economic challenges.

One of Coachmen's latest setbacks came last week when the New York Stock Exchange gave notice that the company would be suspended from trading Thursday for not meeting the minimum market capitalization for NYSE companies.

"Coachmen's shares will still be publicly traded, just in a different venue," Coachmen Chief Executive Officer Rick Lavers said in a statement. "Delisting may actually help us improve our bottom line performance by reducing some of our overhead costs."

The company said it could appeal the NYSE decision or would work to be listed on an over-the-counter market.

Being ousted from the prestigious NYSE brings its own set of challenges.

"That means their stock is going to be more thinly traded," said Matt Will, associate professor of finance at the University of Indianapolis.

Fewer analysts or institutional investors are likely to follow or buy into the company, Will said. "It's a domino effect that hurts the company."

Coachmen has been in restructuring mode for years amid financial losses and stagnant or declining stock value. With the downturn pressing down, Coachmen is making fundamental changes.

At the end of 2008, Coachmen sold its RV unit -- including the Dalmatian logo and "Life should be so easy" slogan -- for $42.2 million to Forest River, a nearby Northern Indiana company owned by Warren Buffett's Berkshire Hathaway.

Coachmen is placing its future in areas such as housing and specialty vehicles. The company said its housing group posted a modest pretax profit last year.

However, plenty of challenges remain. In 2008, the company posted a loss of $68.16 million, up from $38.75 million the year before.

In its annual report filed last month, Coachmen said it was working to secure a $6 million bridge loan and disclosed "substantial doubt about our ability to continue as a going concern."

Coachmen is hardly alone in its changes. Elkhart-Goshen's unemployment rate has spiked to 18 percent.

Everyone from President Barack Obama to Fox News has used Elkhart as a backdrop to discuss the nation's economic woes.

"Our most important role right now is working on the business climate," said Kyle Hannon, vice president of public policy and communications for the Greater Elkhart Chamber of Commerce.

That includes working with local communities to streamline the processes businesses use to seek economic incentives.

It also includes working with the local metal fabricators, who have been key suppliers to the RV industry, to find new customers. Hannon said working with wind-turbine makers is one possibility.

Will of UIndy said the Elkhart region has a skilled labor force and opportunities to broaden its reach, such as pre-making sections for more upscale homes.

Hannon sees better days ahead, yet he also expresses frustration. His office has fielded requests from CBS, ABC, Fox News and others. One crew asked specifically to be taken to a boarded-up plant.

"Sometimes the national media will buzz in, do a quick story and buzz out," he said.

Economic rebounds are anything but easy. But they can happen.