My question is why haven't the builders, per this little thing called the Sarbanes-Oxley, restated their balance sheets to reflect the new lower values of their land and building holdings? That, my friends, will happen, mark my words. Just like the telecom's post-internet-bubble. Huge write-downs.
I like the optimistic view that the downturn only goes through 2007. Look to Japan. Look to Japan.
Homebuilder KB Home said negative trends in the U.S. housing market could persist in 2007, as inventory accumulates amid higher interest rates, according to a filing with the Securities and Exchange Commission on Friday.
"Conditions in many of the markets we serve across the U.S. have become more challenging in recent months," the Los Angeles-based company said in its quarterly filing with the SEC.
The company said revenue has been hurt by a rise in new and resale home inventories in addition to higher interest rates and cancellation rates.
July 10, 2006
KB Homes reports: We expect the current negative trends in the U.S. housing market to continue for the remainder of 2006 and possibly into 2007
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Just like the telecom's post-internet-bubble. Huge write-downs.
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I remeber the "one-time" charges by the likes of CSCO, JDSU, etc...
Remember the business week article from March 6, 2006:
http://www.businessweek.com/magazine/content/06_10/b3974141.htm?campaign_id=search
KB Homes said - KARATZ: I don't see a fundamental slowdown other than in the hottest markets. Things don't continue through the roof forever. This is a breather in prices, and that takes some steam out of the market. In some markets, 10% to 15% of buyers were speculators. You take them out, and the market drops 10% to 15%, and it takes three to four months for whatever overhang there was to be sold, and then the market stabilizes. That's where I think we will be three to four months from now.
WTF??? Karatz is a LIAR!
"We've only just begun. . ."
Where is Karen Carpenter when you need her. . .anyone here old enough to remember THAT song?? Well, we are ALL old enough to remember the internet meltdown. . .Remember DRKooop.com? Pets.com? CDNOW.com? where are they now. . .BTW - Lucent Technology is STILL a basket case - just reported revenue down 300 million again late today. . .a day late and a dollar short - Homebuilders will be lucky to be standing 5 years from now.
At least KB Homes make kind of okay homes. I was driving around this weekend and saw a subdivision built by Centex. Good lord it was the ugliest neighborhood I've ever seen and all the houses were for sale. I wish I had my camera.
It's hard to sugar coat a t... oh, nevermind
But these HB execs will sure try!
I can't wait to hear how WCI Communities spins their quarterly report. They pre announced condo sales down 80% last month, so things can't be good.
Good catch crispy&cole
do you know about Sarb-Ox? Is that what is in that law? Do they have to mark everything down on their balance sheet? Isn't that what their auditor must do as well?
If KARATZ was selling stock in March, he should be charged with insider selling. Some of these scumbags need to be thrown in the slammer, to put the fear of God into the other scumbags.
So.... how long before the reverse stock splits happen?
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