Fleetwood shares surge after huge Monday drop

The stock jumped 31 cents, or 41 percent, to $1.05 in afternoon trading. The gains follow a dramatic drop in Fleetwood's shares on Monday, when the stock tumbled 57 cents, or 43 percent, to close at an all-time low of 75 cents. Trading of Fleetwood shares was halted for a time on Monday.

A Fleetwood spokeswoman said in an e-mail she knew of no news that would have affected the stock price so dramatically the past two days. Monday's drop, however, came as the broader market plunged after the House of Representatives voted down a $700 billion financial sector bailout--sending the Dow Jones industrial average tumbling 778 points. Major indexes rebounded somewhat on Tuesday, with the DJIA up 260 points by afternoon.

The broader RV sector has been suffering an ongoing slump brought on by volatile fuel prices, declining consumer confidence and a difficult credit market. On Monday, Robert W. Baird analyst Craig Kennison said in a client note that fundamental trends in the sector "remain dreadful."

August RV shipments fell 46 percent in August, while motorhome shipments plunged 67 percent, he said.

Shares of Fleetwood are down 87 percent so far this year. The stock is off from a 52-week high of $10 set last October.