Monaco Shutdowns - Is Monaco a survivor? Stock < $4

[DocUSAF]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">As others have stated Monaco needs to preserve their customer base. </div></BLOCKQUOTE>
Exactly. Hope Monaco Corp., is listening to you Moisheh. The die hard "Loyal Monaco Owners" are the ones who will be there when the real smoke clears.
I just know if Monaco is really working on R&D, then folks will continue to have faith in the product. Monaco didn't get to be "number one" looking over the other guys shoulder. Service Centers and even factory retrofit/repaints can help generate some capital if Kay is smart, at lease until he can unveil a new fuel saving diesel power pak that the dealers can sell and the banks can loan against. If Kay's engineers can cut coach drag with spoilers, front caps, skirts, top molding railings, lower gears/trans then current owners' will start lining up for Monaco refits. No-one spent this kind of money just to see 'em sitting around chilling out.

[Robin_M]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">"Monaco Coach operates at significantly lower operating margin than its leading competitors. To address this opportunity, the company has cut unproductive capacity, restructured its dealer pricing strategy, and entered a joint venture with International Truck & Engine Corp. to produce high-end diesel chassis. </div></BLOCKQUOTE>I wonder what exactly "restructured its dealer pricing strategy" means. Depending on what has changed, it could have an impact on dealer sales strategy.

[DocUSAF]

I think it "might mean", units not actually selling under the Monaco logo/brand, won't be offered as much, smart "limited series" production sales Ad's. My guess is there won't be a huge selections of different models & floor plans coming off the lines. To much 07/08 inventory models waiting (especially 5-wheels), and dealers aren't rushing in to buy.
Just wait until we see this Quarter sales reports, I think (the bottom line), is gonna hurt and Kay knowns it. Might even show some negative/red ink.
I would guess that most RV models from factory to dealers will also not have the pricing flex. Dealers make the real money on the front, back and sometimes both sides of the actual unit sales. If the margins/profits are very tight (due to increased/adjusted production cost, materials, rubber, wages, ect), and banking rates are high also, then forget it.
MSRP will possibly have a whole new meaning. Monaco Corp., because it's so large needs capital generated and write-off margined. MC could really use a huge multi-million dollar "no bid", type military contract. To bad they're not engineering/ working with the GAO contract office to offer up "quick crate mobile units". I know the guys/gals serving in the deserts could really use 'em. Any four slider, sand painted mobile unit with AC and plumming would be a big hit.
This quarter sales reports will give us all better insight. Then we'll all know what exactly "restructured its dealer pricing strategy" means.

[moisheh]

docusaf:

A "quick crate mobile unit" is way out of Moanco's league or any of the other RV manufacturers. Most could not survive the shipping!! There are Companies like GE capitol ( formerly Atco) who know how to build mobile structures. Both Bluebird and Airstream ahve built custom units over the years. Your typical RV manufacturer only knows how to use staples!!! Look at the Katrina units!

[Camelot Camper]

Wow, check the very bottom of Buddy Gregg MH home page. The font size for "Monaco" has really shrunk. I guess that's one way of sending a message to your customers.
CC

[DocUSAF]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Your typical RV manufacturer only knows how to use staples!!! Look at the Katrina units! </div></BLOCKQUOTE>
Wow, then Monaco can't seem to warp speed/rapidly adjust to the current world open markets (who actually have cash/funding). Wow, just floating dead on the US open market with no rudder, waiting.
Bet the employees in Ind.,are really feeling hit hard starting today till Sept 17th.
You can't tell me the long term planning (futures)guys at Monaco (billion dollar Corp office heads), didn't see any/any of this coming. Even some the Enron brass/Houston knew something was Ugly. Oil futures just rebounded Upward today, AGAIN!. What's that dang burning smell. Thanks God, we all have paddle boats, just in case!

[moisheh]

Docusaf:

You keep talking about World markets. Just who is that can afford these big units? Not the Europeans, not the Australians. Not in S.A. Not in Africa. So which continents are left? Not in Asia? The Arabs have the $ but RVing is not part of that culture nor is that likely to change. I dont understand your statements???

[DocUSAF]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">I dont understand your statements??? </div></BLOCKQUOTE>
Well, I try/let's see. Sorry but:
1. I wasn't focused just on big Class A units. We all know RV's include more than just Class A, like (B's, C's,5th Wheels and even Pop-Ups).
2.I've lived and driven in Italy, Germany, England, Saudi, Kawait, Austria, and a few other locations outside the US.
3. A Monaco Exec informed me that Monaco Corp., does actually have Unit Sales in other countries, so I based my inputs on those facts. Many Arabs nations have more western input than a lot of folks think. If you get over to Kuwait, you'll see many western influences. Just start at the downtown Holiday Inn next to the Hilton next to McDonald and KFC. Some Arab cultures allows many things. It's not just camels, dust and be-headings. Europeans love to go on weekend holidays, small unit Class B/C's and pop-Ups fit right in. OK, hope that helps regarding my view on World markets.

[Bobby C]

I'll put my two cents in. We just orderded and took delivery on our new Monarch. Getting things corrected on the coach has been difficult at best. But, I choose to consider Monaco's finacial position and am glad the senior leadership has the intestinal fortiude to make tuff decisions. Since ordering our coach, MNO has laid off nearly 2,000 employees closed three plants, moved to a shorter work week etc. I hate it for the MNO employee, I really do. But, I believe company's that prosper and live the good life soon forget about the details and allow sloppy management. Managers choose the easy way even though it may be more expensive or choose to allow corners to be cut even when it is against company policy. Not than Monaco is a bad Company or is "getting what they deserve", the economy has been fat for very long time. The economy is also cyclical, meaning that it has it ups and downs. Our economy has been driving down this road for a long time and Company's like Monaco probably should have been more aggressive in expense cutting and killing product lines that can not support themselves. My company has changed a lot over the past five years attempting to be focused on what we and do it very well. We are not perfect, just trying to stay ahead of our peers and keep from having to take more drastic measures. Who know's if Monaco will make it? But I do think it will take more than loyal customers to keep them afloat. We have to trust that the experts that built Monaco will find ways to realign the Company to reflect customer needs. For example, my dealer carries fewer high end MH but chooses to offer more selections in the TT and 5th wheel arena. In May when I took delivery of our MH, the owner told me his sales volume YTD is up over last year due to the increased sales of towables. He claims more people are opting for camping as family recreation vs trips that require hotels and eating out and flying. I believe he may be on to something. We have had difficulty finding a campsite later in October. It has never been this difficult before. I think MNO will survive. They have proven that they can make the tough choices and as long as they continue to make the necessary changes, they will survive.

Please don't shoot me.....

[DocUSAF]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">They have proven that they can make the tough choices and as long as they continue to make the necessary changes, they will survive. </div></BLOCKQUOTE>
Bobby C, excellent input. I concur with your comments. Monaco Corp., will survive just repackaged all over, or they'll go down swinging/trying. DocUSAF

[bsavage]

Actually, I have to agree with Bobby and Doc. I come from a personal perspective... Tony has had his grading and trash company since 1995, and has been built around residential new construction, which has been plentiful in Arizona. When the market started to tank, we did everything to enter new markets, find new business, cut costs, save the business. Today's very harsh reality, folks, is... the business ain't there. You can borrow, and borrow, and borrow to stay afloat... a wise executive starts cutting costs as needed (never an easy choice, lives are changed)... you do all you can to try to survive. We closed Tony's company last month, after having invested (probably too much) money, after money, after money, hoping for a turnaround in the market. Sometimes you don't see it coming (anyone remember 2006? Ahh, the good old days...), but we had a well established, well respected company. Fact is we still had well over a million dollars in contracts, but there is no demand, so production is slowed so much that the overhead eats you up alive. So it is with the RV industry... we all know it will come back, but the cost of maintaining a business and hoping for a turnaround when none is in sight is exhorbitant, especially on the scale of a company the size of Monaco. I truly hope Monaco survives, and ultimately can hire back those that have lost their jobs, but for those of you that are fortunate enough to be retired happily, thank your lucky stars. I tend to be the incurable optimist, but if fuel prices don't stop increasing, this economy hasn't even begun to see it's darkest day.

Historically, the housing market has helped our country's economy stay stable, and in the last two decades, it has allowed many of us to "find wealth" in our equity (okay, how many of you used some of your home equity to buy your coach?)... I agree that the market may improve for lower end RV's, as it is still an economical and oh so pleasant way to travel, but it is quite predictable that the mid to lower-upper end will suffer. The Prevost owners probably aren't affected too much... but ya' never know. We're seeing more foreclosures in the higher end of the real estate market here in AZ... Scottsdale, Paradise Valley, Fountain Hills, all of the highest of the high end.

IMHO, Monaco execs are doing all they can to stay afloat. It may or may not work.

Sorry, I try to never be a kill-joy, but things need to turn and turn soon for most high end RV manufacturers to make it through the storm.

Okay, now somebody cheer me up!!

Brenda, of...

[DocUSAF]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Sorry, I try to never be a kill-joy, but things need to turn and turn soon for most high end RV manufacturers to make it through the storm. </div></BLOCKQUOTE>
Well Brenda, don't know how to say this but you're exactly right. I hope Monaco really considers refitting large RV DIESEL units with natual gas type options. There is natual gas all over America. We are the Saudi of the world with clean natural gas. We already have RV camp sites all over, why not tap them as a base-line for refills w/natural Gas tanks. Small repair stations can even install natural gas tanks. Many large city bus lines already run on natural gas. We should take the same approach with large RV's. Smaller cars can follow the process but larger fuel consuming RV's/Trucks need to refit Today.
High end homes forclosures is really bad, kinda like the coal miners' bird effect. Money getting short even for the rich. I think the RV company who can offer to step up and lead the way with natural gas just make be the only one who survives it. I plan on driving my coach as lone as I can, so I'm just waiting for a natual gas retro-fit appointment. Keep on Trucking. Doc USAF

[Bobby C]

Brenda, A piece of good news is that MNO stock was up today. The will have their earnings call tomorrow. That should be interesting!!!!

I listened to their earnings call last quarter. Whow! I have never heard investment firms ask the questions and use the tone of voice like I heard them asking Kay and his team. Our Company has had tough times but never have we been questioned like MNO did last quarter. The investment community ask why the continued efforts and money spent on the MI resort and other nondeveloped property owned by MNO. Kay shielded his response by trying to talk about new Class C's MNO would introduce later in 2008.

If I may ask from an earlier message. Did you father do any of the woodwork in your MH, or is that all MNO???? It is beautiful!

[bsavage]

No, Bobby, all of the woodwork in our coach is factory installed. Beaver coaches have always been known for their woodwork. Monaco bought Beaver somewhere around 2005 (someone correct me on that timeframe if I'm wrong). In fact, Monaco has replaced about $9,000 worth of it because many cabinets started to delaminate... and we were not in warranty. The new cabinetry is beautiful, and better than the original, by far. It took a couple of phone calls and emails, but they stepped up and replaced it all at their cost. That's good customer care.

Brenda, of...