$9.65
-0.01 (-0.10%)
Pulte Homes, Inc. (PHM)
CAPS Rating:
The Company is a publicly held holding company whose subsidiaries engage in the homebuilding and financial services businesses.
Fool.com
The World's Greatest Investing Community
RSS Headlines
Fool UK
Recs
land prices have fallen farther than I thought, I see UE reaching 12% by 2011... Pulte has too much land and will not participate in the biggest fleecing of banks in the history of the US. Focus on builders with low land positions
Why FB ...why? Et tu brut....just kidding! So I am left only with MTH as pile on.Incidentally I did buy MTH last year ( on Nov 20th to be precise) ...but sold out a little early.OK PHM you are out
anchak... pulte has done zero since i first started blogging to reduce their land position.... from a cash / debt standpoint I am comfortable, but when I rate a builder it is based on what they are doing strategically as much as their ability to survive.... pulte is fallen from the 2nd tier to the 3rd tier of builder stocks...... 1st tier are the best... 4th tier are going bankrupt
FBWhat's the impact of the PHM acquisition of CTX? Beginning or end of game?
FB what is your insight with the Pulte/Centex deal? We have a little Centex in town as of 5 years ago. I keep running into them at the bank...
nevada builder.... you should start seeing consolidation of people (layoffs) quickly. The odds of a Pulte person being flushed are the same as a Centex person. Just because Pulte is the acquirer means nothing.Pulte gains nothing from this acquisition. Their stupidity has not hurt them before, but you can only make so many dumb moves. I believe this is nothing more than a move to cover overheads and get SG&A down. Pulte is going after market share and moving into DR Horton's game... both of them are wrong, but they are lucky because Lennar is in worse shape
lot of builders on here today.... I don't follow the St Louis market but there is no reason for any public to be building there. You cannot get the volumes you need to be competitive against the smaller/private builders who dominate that landscape....Originally, several years ago this deal was about synergies because there was a lot of overlap between the two... however, today the market is different and the same strategic alliance is actually a big negative not a big win
Since the spring selling season is all but over I am looking forward to another blog. And I do remember that I still owe you a case of monster for your last one.
So buried right now... YOY comps in most everything are improving for the 2nd straight quarter. The biggest issue is the spread between gross margin and SG&A. That can get fixed by future write offs and/or buying finished lots at deep discounts today. In any event, the bottom has past barring a black swan. Going forward we will bounce around on the bottom for a couple years, but that is actually beneficial for the public builders because they will have more time to buy cheap lots.
Private equity is putting money to work in this space now and has been since April, so regardless of what people want to think about the macro picture, if big pockets put money to work then it provides a floor.