Originally Posted by Bulls23
Hey blanchedsoldier what are your thoughts on CHB? TX in advance
Champion Enterprises, Inc. (Public, NYSE:CHB)
Medium term its in a negative trend down. In the immediate term you might see some gains but this is losing money and has closed many plants and laid off many workers. I would have to get a analysts report to give you an answer on this. I would try find one. Despite people not liking analysts, in matters like this they are good.
I suppose it is so cheap and with global recovery... but it is reporting large losses so its risky. I would get an analysts report because if this runs it would be great.
This sums it up
Standard & Poor's cut its credit ratings on Champion Enterprises Inc. (CHB) and subsidiary Champion Home Builders Co. closer to default, saying it sees an increased likelihood of a debt restructuring.
Champion, whose businesses include producing factory-built housing in the U.S. and Canada, has posted a string of losses amid the housing and credit crisis.
The credit rater lowered the ratings by two notches to CC and said the outlook is negative. S&P credit analyst George Skoufis said the ratings firm would view a debt restructuring as "distressed and tantamount to default."
Champion wasn't in compliance with amended bank-credit facility covenants at the end of the second quarter and has been trying to amend it, S&P said. The ratings would be lowered if Champion completes a distressed-debt restructuring, misses an interest payment or files for bankruptcy. Most credit companies consider distressed exchanges a default, though many companies don't.
Shares recently were up 17% at 48 cents in recent trading amid a broad market upturn.