Even those $60,000 off fire sales can't help at this point... it's a long, long, long way back down for Centex and the other homebuilders. Just like the telecom's in 2000 - they're drowning in capacity right when the bubble blew...
Plus, if I was an accountant advising these builders, I believe they must write down the value of their inflated assets (land) to reflect current market valuations, vs. the prior bubble valuations. Just like telecom had to do (or didn't do in the case of some that are now in jail)
No. 4 U.S. home builder Centex Corp. (CTX.N: Quote, Profile, Research) on Wednesday reported a lower-than-expected quarterly profit and sharply cut its outlook as new orders fell 11 percent, sending its stock down 7 percent.
Since peaking last summer, the U.S. housing market has sagged under the weight of rising mortgage rates, which have climbed to their highest level since 2002.
"Net-net it's disappointing," said Keith Gangl, portfolio manager at Thrivent Investment Management
April 27, 2006
Posted by blogger at 4/27/2006