Please continue here:
http://www.investopedia.com/
Showing posts with label Pulte. Show all posts
Showing posts with label Pulte. Show all posts
Tuesday, September 25, 2012
Investopedia: Lennar Rebuilding, But Valuation Overbuilt
Homebuilders have already had a heck of a run over the last year, with names like Toll Brothers (NYSE:TOL), DR Horton (NYSE:DHI) and Lennar (NYSE:LEN)
all up more than 125% over the last year and up many times over from
the lows in the late fall of 2008. What concerns me is whether these
moves have already discounted a lot of the early gains from the nascent
housing recovery - setting up the possibility that housing activity (and
prices) could continue to improve without necessarily taking the
homebuilder stocks with them.
Please continue here:
http://www.investopedia.com/
Please continue here:
http://www.investopedia.com/
Thursday, August 25, 2011
Investopedia: Toll Teetering
Back in June, I was cautiously optimistic on the shares of Toll Brothers (NYSE:TOL), provided that "the economy does not slide back into recession". Nowadays, that concern is looking more ominous, and uncertainties seem to be weighing on consumer sentiment. Toll Brothers is still the best property on the homebuilding block, but these days that may be like asking investors to choose between a haunted house designed by Disney and one designed by Lovecraft. Sure, there's a difference but they're both still haunted houses.
Not a Lot of Good News in the Third Quarter
Toll Brothers reported revenue of $394 million for the third quarter, down about 13% in dollar terms from the year-ago level. Undercut by a 14% drop in units, Toll Brothers actually missed the average analyst guess, but investors should note that there was a pretty wide spread for revenue estimates, which certainly befits the uncertain state of housing.
Read the full piece at Investopedia:
http://stocks.investopedia.
Not a Lot of Good News in the Third Quarter
Toll Brothers reported revenue of $394 million for the third quarter, down about 13% in dollar terms from the year-ago level. Undercut by a 14% drop in units, Toll Brothers actually missed the average analyst guess, but investors should note that there was a pretty wide spread for revenue estimates, which certainly befits the uncertain state of housing.
Read the full piece at Investopedia:
http://stocks.investopedia.
Wednesday, June 1, 2011
Investopedia: Toll Brothers Shows Not All Housing Is Terrible
The housing news cycle is still focused on the negative. The dominant stories from day to day still tend to revolve around the large volumes of bank-owned properties, the ongoing issues with the foreclosure process, and more and more stories of the malfeasance of banks, mortgage brokers, realtors and borrowers.
Please follow this link for the full piece:
http://stocks.investopedia.
Wise investors know better than to just read the headlines without looking a little deeper. To that end, looking at the recent earnings report from Toll Brothers (NYSE:TOL) suggests that the higher-end housing market is doing OK and seems on track for recovery. That's not such good news for builders like Hovnanian (NYSE:HOV), Lennar (NYSE:LEN) or D.R. Horton (NYSE:DHI), but a recovery somewhere is better than bad news everywhere.
Underlying Second Quarter Results Seem a Little Better
Underlying Second Quarter Results Seem a Little Better
To be clear, it was not as though the Toll Brothers earnings report was uniformly fantastic. Revenue came in as expected with growth of 3%, but bottom-line earnings were worse than expected due in part to higher impairment charges. While the company did see solid improvement in gross margin (excluding impairments), SG&A was a little higher.
Please follow this link for the full piece:
http://stocks.investopedia.
Wednesday, April 27, 2011
Investopedia: Wait For A Better Chance On Plum Creek
Timber is a great investment class, and Plum Creek Timber (NYSE:PCL) is one of the biggest and best operators in the field. So that's it then, right? Just buy Plum Creek shares and hang on for the long haul.
Actually, for some investors that may not be bad advice. Timber is a renewable resource but the long-term demand outlook is very solid and the available land base is shrinking. Still, for investors who cannot stomach the thought of 20% short-term losses, timing is more important and there are factors beyond the long-term timber demand outlook to consider. (For more, see Timber Investments Cut Down Portfolio Risk.)
Still a Rough Market in the First Quarter
As Plum Creek's results show, the tough times are not over yet in the timber market. Revenue dropped 13% from last year, led by a 37% decline in real estate sales. In the timber business, the company did benefit from better pricing in the Northern segment, which resulted from the Chinese demand. Business is still tough in the South, though, and overall, timber revenue fell 7%.
To read the full piece:
http://stocks.investopedia.
Actually, for some investors that may not be bad advice. Timber is a renewable resource but the long-term demand outlook is very solid and the available land base is shrinking. Still, for investors who cannot stomach the thought of 20% short-term losses, timing is more important and there are factors beyond the long-term timber demand outlook to consider. (For more, see Timber Investments Cut Down Portfolio Risk.)
Still a Rough Market in the First Quarter
As Plum Creek's results show, the tough times are not over yet in the timber market. Revenue dropped 13% from last year, led by a 37% decline in real estate sales. In the timber business, the company did benefit from better pricing in the Northern segment, which resulted from the Chinese demand. Business is still tough in the South, though, and overall, timber revenue fell 7%.
To read the full piece:
http://stocks.investopedia.
Friday, June 18, 2010
Lumber Does Not Bode Well For Housing
I would like to mention that this column was written *before* the housing data came out the other day...
Over the last year or so, home building stocks as measured by the S&P Homebuilders SPDR (NYSE:XHB) have had a pretty respectable run, topping the S&P 500 by about 20% or so. Of course, it must also be mentioned that this is a strong recovery off of a deep bottom, as a four-year comparison shows a painful drop of over 60% for holders of this ETF.
Among this year-long rebound has been a muddle of mixed messages, as sentiment feels worse than the numbers look. Low interest rates and tax credits have encouraged some buyers to get back in the market, and banks seem to be reporting some stabilization. Going a step further, prices seem to be creeping up again, housing inventories have leveled off, and sales appear to be growing.
That has not really been good news of late, though, for the shareholders of stocks like Pulte (NYSE:PHM), D.R. Horton (NYSE:DHI), Lennar, or Toll Brothers (NYSE:TOL) as these stocks have all come off their highs lately. If these stocks can move unpredictably in the face of economic data, is there another data source for investors to watch?
The answer appears to be "yes".
To read about the linkage between lumber futures and housing stocks, continue on to:
http://stocks.investopedia.
Over the last year or so, home building stocks as measured by the S&P Homebuilders SPDR (NYSE:XHB) have had a pretty respectable run, topping the S&P 500 by about 20% or so. Of course, it must also be mentioned that this is a strong recovery off of a deep bottom, as a four-year comparison shows a painful drop of over 60% for holders of this ETF.
Among this year-long rebound has been a muddle of mixed messages, as sentiment feels worse than the numbers look. Low interest rates and tax credits have encouraged some buyers to get back in the market, and banks seem to be reporting some stabilization. Going a step further, prices seem to be creeping up again, housing inventories have leveled off, and sales appear to be growing.
That has not really been good news of late, though, for the shareholders of stocks like Pulte (NYSE:PHM), D.R. Horton (NYSE:DHI), Lennar, or Toll Brothers (NYSE:TOL) as these stocks have all come off their highs lately. If these stocks can move unpredictably in the face of economic data, is there another data source for investors to watch?
The answer appears to be "yes".
To read about the linkage between lumber futures and housing stocks, continue on to:
http://stocks.investopedia.
Subscribe to:
Posts (Atom)