Company Description
Champion Enterprises Inc. is one of the leaders in the manufactured home building industry. The company specializes in factory manufactured housing and building materials, specializing in two-story homes, multi-section homes, ranch-style homes, single-style homes, Cape Cod style homes, townhouses, duplexes, and triplexes. Modular homes maintenance cost is lower than traditional homes making them a better option.
Champion Enterprises traded on the New York Stock Exchange under the ticker symbol CHB. The company which was founded 56 years ago declared Chapter 11 bankruptcy in 2010. Before filing Chapter 11 the company was the highest producer of homes in the industry while doing operations out of various plants in North America and Europe. Champion Enterprise is a parent company of numerous subsidies in the manufactured home industry.
I decided to take on investment in the company, which at the time was stalling, in hopes of getting a return on investment. I sold my shares 02/07/2011 at a loss because the company did not seem to have things in order. I originally acquired 9 shares on 08/14/09 and 91 shares on 10/07/09. The average price per share (total cost divided by total shares) when I purchased the stocks was $0.45 and on the date of sell my shares they were worth $0.02 per share. The company was excellent at providing information to its investors as decisions were made during the years of operations; however there is limited information on the company since the bankruptcy .
Future Outlook
The future for Champion Enterprise is extremely optimisticoptimistic; with some major changes the company can once again be successful.. The reason the company filed for bankruptcy was to take care of its deb...
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...ck trends past performance is an indicator of future performance. Therefore, investors should proceed with caution when investing in Champion Enterprise.
Work Cited
Duggan, Daniel. “Champion Enterprises Inc. files Chapter 11 bankruptcy.” Crain’s Detroit Business, November 16, 2009.
"COMPANY NEWS; CHAMPION ENTERPRISES NAMES PRESIDENT AND CHIEF." The New York Times, July 14, 2004.
"COMPANY NEWS; CHAMPION TO LAY OFF 1,000 AND CLOSE 4 PLANTS." The New York Times, Sept. 6, 2003.
"COMPANY NEWS; CHAMPION ENTERPRISES HIRES A NEW CHIEF AS DEBT RISES." The New York Times, July 1, 2003.
"CHAMPION ENTERPRISES AND REDMAN IN TALKS." The New York Times, August 15, 1996.
Other Web Sources:
http://www.mobilehome.net/manufacturer_history/champion_enterprises_inc.htm
https://us.etrade.com/e/t/home
http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code
The three companies chosen for this evaluation range from a foundation whose entire existence is based on helping people to a corporation who is basically a monopoly for power in several U.S. states and whose #1 goal is profit.
Lublin, J. S., & Carrns, A. (2003, April 11). Directors had lucrative links at HealthSouth. Wall Street Journal. p. B1. Retrieved from: http://search.proquest.com.proxy1.ncu.edu/docview/398944990?accountid=28180
Drury, Bob and Calvin, Tom. The Last Stand of Fox Company. 1st ed. New York: Atlantic Monthly Press, 2009.
Moore, L 1997, The Flight to Franchising, US News & World Report. June 10, pp. 78-81.
When Jim Kilts showed up at Gillette in 2001, the first outsider to run the Boston-based company in more than 70 years, he found a business with great brands losing market share. Its acquisitions of Duracell and Braun were not delivering. Sales and earnings were flat, the company had missed its earnings estimates for 15 straight quarters, the stock had plummeted, and Wall Street had lost patience. Yet two-thirds of the top managers were getting top ratings. People were being rewarded for effort; performance, under Mr. Kilts regime, became the new measure.
Lynch, Allen, Great Decisions, Report Card on Survival, New York, The Chase Manhattan Corporation, 1999
Facing growing competition Stan had to become a transformational leader by integrating companies that are not the traditional office furniture roots. Since 2003, Stan has served as CEO of HNI Corporation which is now comprised of six companies plus HON International which markets products outside North America. Allsteel, the Gunlocke Company and Holga served the contract furnishings market. The HON Company and BPI Inc. made and sold middle-market office furnishings. Hearth Technologies comprised of Heatilator, Heat-N-Glo, Aladdin Hearth Products and Hearth Services Inc. By integrating these companies HNI is able to leverage similar operations to maximize cost and efficiencies to be able to give our customers the best cost possible in very competitive
Conclusion: Given the current economic status the home improvement industry is in a low spot with sales. With the decrease in building new homes we have to focus mainly on home improvements. The three strong points we have against existing rivalries are our great locations, quantity of quality products, and convenient customer service. With these great qualities we can move ahead and stay ahead of our competitors during these times.
Saunders, George. "The 400-pound CEO." Harper's Magazine Feb. 1993: 52. Expanded Academic ASAP. Web. 11 Apr. 2014.
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Muller, J., Welch, D., & Greene, J. (2000, September 18). Businessweek - Business News, Stock Market & Financial Advice. Businessweek - Business News, Stock Market & Financial Advice. Retrieved April 17, 2011, from http://www.businessweek.com
Guyon, J. (1997, August 4). Why is the world’s most profitable company turning itself inside out? Fortune, 136(3), 120-125.
Peters, T. J. & Waterman, R. H. (1982). In Search of Excellence: Lessons from America’s Best-Run Companies. New York: Harper &
"Top Executives." Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition. 29 Mar 2012: n. page. Web. 29 Oct. 2013. .
A study has been conducted to find the reasoning behind the surprisingly abrupt success decrease. It shows that one of main contributing factor includes a new increase in competitors in the area, which may start to create a rivalry with the industry. Competitors can become a huge danger towards companies since this gives the customers more options when deciding which product to purchase. There have also been new entrants, who of which are creating new and different products that are now available to the customers. Customers are also being persuaded by the power of other companies. This is now becoming a very competitive market, which can have a great effect on the company’s success. Although this is just one factor that seems to be affecting sales, there seems to be more contr...