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EScroogeJr (< 20)

good news for HOV, bad news for NVR

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January 23, 2008 – Comments (2)

This could change the picture dramatically.

http://biz.yahoo.com/ap/080123/economic_stimulus_business_boon.html?.v=1 

This cash infusion means no bancruptcy for the weak homebuilders, and no chance for strong builders to get land at 40 cents per dollar. While floridabuilder's top 5 may enjoy their refund, they'll have to look for cheap land elsewhere. 

 

2 Comments – Post Your Own

#1) On January 24, 2008 at 12:01 AM, camistocks (< 20) wrote:

The picture always looks terrible at the bottom. But the bears will lose, as usual...

Great link! 

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#2) On January 24, 2008 at 12:56 AM, floridabuilder2 (99.26) wrote:

escrooge... actually i saw your post as i was writing mine... i mentioned it in my post....

this should help builders, but the real question is that there is to much supply... again gov't intervention is going to help the weak to keep them afloat and allow more supply to come in... builders build... you need to cut off their funds if you want them to stop building...

this doesn't change the picture for what land sells at.... yes, the publics won't sell at 40 cents on the dollar, but bad deals are rolling into the banks and they will gladly take 40 cents vs. owning a dead asset....

great catch, I need to incorporate it in my strategy tomorrow at market open

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