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alstry (< 20)

HB Meritage Wants Your $$$$



April 16, 2008 – Comments (7)

SCOTTSDALE, Ariz., April 16, 2008 (PRIME NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH - News), a leading U.S. homebuilder, announced today that it will file a preliminary prospectus supplement for a proposed public offering of up to 4,000,000 shares of common stock. All shares are being offered by Meritage Homes. The Company will grant the underwriters an option to purchase up to an additional 600,000 shares to cover over-allotments, if any. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Meritage plans to use the proceeds received from this offering for working capital and other general corporate purposes.


IS THIS A JOKE????????????????????????????

We are talking about less than $100 million dollars even if the over allotment is granted.  Last year MTH lost over $400 million pre tax.

Selling condititions are much worse this year than they were last year.  Can you imagine what the language in the S-1 will say?

No wonder they give no assurance as to whether the offering may be completed.  Didn't SPF try this nonsense a few months ago and we have hears nothing to date?

Banks are getting much tighter:

Talbots shares plunge as retailer confronts cash crunch after 2 banks cut off lines of credit

BOSTON (AP) -- Shares of Talbots Inc. plunged Wednesday after two banks decided to cut off their flow of credit to the women's apparel retailer, making it tougher to find cash as the chain tries to rebound from recent financial losses and store closures.SPF has less than a month to convince its bankers to extend its line of credit...for the fifth time.

7 Comments – Post Your Own

#1) On April 16, 2008 at 6:17 PM, devoish (71.21) wrote:

Well, it was up 7.5% today. 15% dilution I guess should send it skyrocketing ever upward. Especially, I guess, since it means they could not get a loan. Or sell houses to pay bills. Possibly they are generously offering an opportunity for everyone to jump in on their recovery?

Hold me back, Mama.

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#2) On April 16, 2008 at 6:44 PM, bellard (97.25) wrote:

SPF was up 10% today? The SPF earning for this first Q will be very interesting. I am predicting a terrible Q. While I do not think BK is in SPF 2008 forecast, The stock should be closer to 3 than 6....

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#3) On April 16, 2008 at 7:04 PM, alstry (< 20) wrote:

Guys, what the heck will $100 million do for a company losing hundreds of millions last year in a better selling environment?

When SPF tried the same nonsense a few months ago, I said it would never get off the ground.  To date we have still hearn nothing....MTH may be the same.

Here is a little dose of Realty Reality:

“Riverside and San Bernardino counties last month led Southern California in percentage of foreclosure sales, reaching 56.4 percent of total sales in Riverside County and 48.7 percent in San Bernardino County.”

“Marlene Lopez, a real estate agent, has been trying to sell her five-bedroom house in Lake Elsinore for two months. Only three shoppers have come by to see it, she said, although the house that she bought two years ago for $535,000 is now listed for $399,000.”

“Lopez, who has to sell because of a divorce, said she is competing with a huge inventory of distressed properties, including empty houses in her development that the builder hasn’t sold.

“Legislation raised the ceiling for government-sponsored Fannie Mae and Freddie Mac mortgages to $500,000 from $417,000 in Riverside and San Bernardino counties. But John Marcell, a California Association of Mortgage Brokers official who lobbied for the reforms, said they are not working as well as hoped.”

Lenders who offer the larger loans are charging higher interest rates and tightening underwriting qualifications for borrowers.”

“Marcell said at the insistence of Wall Street mortgage investors, tighter lending qualifications also have been imposed on Federal Housing Administration borrowers since the ceiling on FHA-insured mortgages was raised to $500,000 from $362,790 in the Inland counties.”

“‘I don’t think Congress realized the investors were going to be so gun-shy, but they are because they got stuck with so many delinquencies and foreclosures,’ Marcell said.”

How the heck can any homebuilder ever expect to make a dime in this environment....and now foreclosures are ACCELLERATING.....what do you think prices are going to be like this summer when sales slow and inventory is in the stratosphere?


Folks the mess is just beginning until the foreclosure problem and slowing economy comes under control.

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#4) On April 16, 2008 at 7:33 PM, bellard (97.25) wrote:

Its all about the price - of the stock that is. I have no HB position in my real portfolio. I may buy some puts on LEN, CTX, and KBH if their stock prices keep going up....

I actually think the new starts, and permit are a positive sign.  As you state, we need to clear thru the foreclosures first, then start building again.... 

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#5) On April 16, 2008 at 10:56 PM, devoish (71.21) wrote:


I don't get what people see in these builders right now. Hope, I guess. And it kills me to hear that low starts and permits are a positive now, when higher starts and permits are what predict recovery. They don't have buyers. If they did, there would not have been liar loans and 0 down financing to begin with. Seven years ago I had a friend who left Long Island and followed his job to PA. Even then he said he could not afford to buy his house back. He was the CFO at a 100mil dollar company.

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#6) On April 16, 2008 at 11:53 PM, dwot (29.17) wrote:


But, I don't understand the market...

Eventually, and it can take a while, eventually the fundamentals win. 

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#7) On April 17, 2008 at 7:37 AM, klemenv (97.68) wrote:

It is a brillint marketing move.

First insiders were buying stocks and make everybody knowing that.

Than company starts pallning IPO.

So with one move they will tell the world that:

- they are great

-  in fact they are so great, that it is time for IPO

Man, they are in the same league as VISA.

Now, the only thing missing is Jim Cramer starts crying "MTH is fine, don't pull your money out of MTH". 

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