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alstry (< 20)

Should SEC investigate into HOV's financials????



September 03, 2008 – Comments (2)

From today's earnings release: 

commented Ara K. Hovnanian, President and Chief Executive Officer of the Company. "Despite disappointing operating losses, we successfully generated cash during the third quarter and remain on track to end our fiscal year with approximately $800 million of homebuilding cash.

Here is the problem, accounts payables are only down about 20% from $515 million to $427 million.  HOWEVER, backlog is down almost 60% from $2.8 Billion to $1.1 Billion.

How can payables only decrease 20% and backlog decrease amost 3X that amount?

Is HOV delaying paying its vendors to make its financial reports look better???????????

2 Comments – Post Your Own

#1) On September 03, 2008 at 5:03 PM, abitare (29.85) wrote:

I hate that guy. I would like to see him in prision.

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#2) On September 03, 2008 at 5:05 PM, alstry (< 20) wrote:


"Worst case scenario" is a term used by people who have been out of business school for less that two years. It is a buffoon's way of saying that a firm has gone directly to the Ninth Circle of Hell in the Inferno section of Dante's The Divine Comedy.

Ford posted its worst day since the company nearly went bankrupt at the end of WW II. The family brought in Henry Ford II, or "HF, The Deuce" as he was known, to fix his grandfather's operation.

Both Henry Fords are dead and Ford Motor Company is the worse for that.

The car firm's PR people had the gall to lead off the Ford release on last month's sales by saying "Higher demand for the fuel-efficient Ford Focus and Ford Escape continued in August, as consumers continued moving to smaller and more fuel-efficient vehicles."

Pushed further down the page were the terrible numbers which showed Ford's total sales down almost 27% to 155,690. SUV sales were down 53% to under 11,000. Sales of the firm's flagship, the F-150 pick-up were off almost 42%.

No matter what anyone says, Ford cannot survive selling 155,000 vehicles a month in the US. If gas prices don't fall sharply along with a recovery of consumer spending, there won't be much of the company left.

There are many many business facing a situation similar to Ford's.  I am not sure there has ever been anywhere close to this many distressed individuals, businesses, and municipalities since The Great Depression.

In America, we cheer when we shut down a union factory and destroy an entire town or community.  Now America may soon learn what its like when the entire nation is viewed as a union shop in the globalized economy.

No value judgment,.....just the facts when a nation is allowed to build up so much debt and entitlement obligations over the past 30 years.

Think of the guy that drives a sports car and keeps borrowing and borrowing to sustain his lifestyle...once the banks don't lend....the game is over......guess what America....the banks ain't lending.

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