January 13, 2006

Remember the homebuilder pump-and-dump call by Merrill on Monday? More bad news for Toll Brothers today

After rallying Monday, the builder stocks crashed back down to their pre-call level. Still, it was a perfectly executed pump-and-dump. Congratulations are in order to Merrill Lynch - good work!

And Toll Brothers put out this update today:

Toll Brothers Says Slowdown in New Home Contracts Continues Into First Quarter

NEW YORK (AP) -- Toll Brothers Inc., one of the nation's top luxury builders, said Friday it is seeing a slowdown in contracts for new homes, as people take more time to make buying decisions.

"Beginning in the fourth quarter of fiscal 2005 and continuing into the first quarter of fiscal 2006, we have experienced a slowdown in new contracts signed," Toll Brothers said in its annual 10-K report for 2005.

Among other factors, Toll attributed the slowdown on softening demand from buyers, a lack of available home sites caused by delays in new community openings, and delays in getting approval for new phases of existing communities.

Toll also said damage from last year's hurricanes, high gasoline prices and expected increases in heating fuel costs have dampened consumer confidence and home demand.

"Because home price increases have slowed in most markets, it appears that customers are taking more time in making home buying decisions," the company said in the filing.


xSparta said...

Another spin from a builder! It's gas prices, it's the hurricanes, it was my dog's birthday........

Anonymous said...

Those lying f*cks on WS should be taken out and bull whipped. They pump the homebuilding stocks up then evacuate their corporate holdings. They know what is going to happen to the building industry and for them to lie is outrageous!

Dogcrap Green said...


I now realize that you are full of it on your shorting the home builders position.

If you had a vested interesting inthe stocks you would know that they closed up 2% for the week despite the wild slide on Thursday.

And if you read my blog. You would have missed the the slide and capture the gains.

By the way home builders will rally at least 3% next week!!!!

Anonymous said...

dogcrap / last anon - lay off keith a little......he is just trying to provide info to some of us who might need it......i am here for housing advice, not stock advice anyways.......