Skyline Corporation (SKY)’s CEO Tries to Rebuff Short Thesis by Purchasing Shares; Caterpillar Inc. (CAT) and Brinker International Inc. (EAT) Also Witness Insider Buying

Skyline’s CEO Purchases Shares after Short Thesis Article

Last but not least, the man in charge of Skyline Corporation (NYSEMKT:SKY) bought some shares earlier this week. Chief Executive Officer and President Richard W. Florea purchased 1,500 shares on Monday for $10.85 each and 3,500 shares on Tuesday at a weighted average price of $9.32, lifting his stake to 23,500 shares. The recent purchase comes shortly after Sonya Colberg’s Street Sweeper article put forward a short thesis on Skyline Corporation, saying that “Skyline shares took off the very day that a completely unrelated company issued big news”.

The shares of Skyline, which produces and markets manufactured housing, modular housing and park models, have advanced 150% since the beginning of 2016. Indeed, Skyline shares have joined a sharp uptrend at the beginning of March, when a news story titled “Vice’s new TV channel Viceland will launch on Sky TV in the UK in September” hit Skyline’s news feed on Yahoo Finance. However, the main issue is that Skyline and Sky TV aren’t related with one another. As Sonya Colberg says, “a United Kingdom-based TV channel is about as far removed from an Indiana-based mobile home seller as you can get”. Skyline’s shares “will fall back to about $3 per share” according to the Street Sweeper article.

However, Skyline’s CEO does not seem to agree with Sonya Colberg’s investment thesis, or he is simply trying to rebuff the claims about the impact of the Sky TV-news story. There were a mere three hedge funds from our system with stakes in the mobile home company, which amassed 10% of the company’s shares. Jeffrey Gendell’s Tontine Asset Management owned 400,405 shares of Skyline Corporation (NYSEMKT:SKY) at the end of December.

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