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.
January 13, 2006
Remember the homebuilder pump-and-dump call by Merrill on Monday? More bad news for Toll Brothers today
Posted by blogger at 1/13/2006