What is the Logic of SEC Action?

Last month, the SEC put more than 700 financial services firms on a list that gave them protection from short sellers.  The idea was to to thwart short-term short selling the exposed companies to runs on the value of their shares.  

It was not just banks, but also some builders, some insurance companies, and plenty of consumer finance firms.  There were a few odd exceptions (HSBC, GE), but the list was complete in its detail.  

Elsewhere, Congress extended huge loans to our automakers.  Now they are talking about more action.

But, what if you were in the business of making homes, financing them, and also providing vehicles for traveling?  

You would be out of luck.  Fleetwood (FLE) could use the help, as could just about anyone in the manufactured housing business.  Fleetwood makes homes and also vehicles (although they have exited finance) and their share prices are really low right now.  Their own access to credit is part of the problem — they have to pay off some notes by December at a time when their cash flows are not great.  

The same protections could be sorely needed at Champion (CHB) which has dropped from 13 to just 2.17 in the last twelve months.  

This is an industry that supplies a good percentage of America’s affordable housing.  

Now there