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Are you totally sure, that nothing changes, and I mean nothing, on each page everyday? Slight alterations, of wording, reversal of wording, spaces, dates, and many, many other slight changes might be missed by the visual eye.
If changes are made, scripted to happen at a scheduled time, And Then scripted to be published daily might possibly explain this.
Without More Info, Pure Speculation
1. Your competitor does their content updating late at night (if they are married, probably long after their wife and kids are asleep), and their work is therefore like clockwork.
2. Your competitor may make even 1 small change to a page, such as add a link, or multiple links to a link exchange edited by hand, but when they FTP their pages, they figure once they are uploading they will just "select all" pages and update their entire directory. It also puts a fresh date stamp on everything.
I am probably not your competitor, but this is my typical routine...
[edited by: Ride45 at 11:32 pm (utc) on Jan. 23, 2004]
I used the Ranks density tool to see how many words in had in his home page - and every day it has 418 words even though the "last-modified" tag indicates it was updated at 2am.
Also, he is running is site on his own co-lo server which has Apache on it - so i am sure he can change things freely.
My guess is that changing the time stamp alone should do it. I used to have a non-competing SERP squatter above or below me who did this daily (presume a crontab was used) and relied on what was called the Freshbot effect to stay at the top.
If he does it manually, heavens, he might as well take a minute to improve or change the messaging.