John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Skyline Is A Turnaround Story With Multiple Value Levers

Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Key takeaways

  • The turnaround at homebuilder Skyline (NYSE:SKY) is not being recognized as the struggling RV segment is masking strength in the core manufactured housing segment.
  • However multiple steps by a proactive management such as lowering the cost structure and selling non-core assets are positioning the company to fully benefit from continued strong demand.
  • Moreover, the slight discount to tangible book value and high net cash limit downside risk while multiple value levers provide significant and overlooked optionality.

Company overview

SKY sells manufactured/modular housing and...

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