Quote Of The Day
"It's impossible for us to keep up with the number of communities that are coming and going in our business activities." - Marshall Ames, the media coordinator for Lennar Corp., on reports that the homebuilder was pulling out of a subdivision project in
Pulte Homes Delays Residents' Takeover Of Sun City. “Developer Pulte Homes (PHM) said it would not turn over the reins [to] Sun City Hilton Head until the community is completely developed. That’s… a change from previous plans that would have given residents control after 90% of the homes were built and sold… Pulte took… control of the association's seven-member board in January... Pulte has built 6,600 homes in
WCI Communities Upgrading Notes Offer. “WCI Communities Inc. (WCI) has upgraded its offer to replace $125 million in 4% notes — which the company has said it can’t repay if the holders demand payment on Aug. 5 — with new notes paying 17.5% and the right to purchase about 33.7 shares of company stock — at $0.01 each — for each $1,000 in debt. The stock couldn’t be purchased until a year from the swap. Earlier this month, the company had offered the exchange for notes paying 16%. Like that offer, the new offer expires at midnight Aug. 4. At least 90% of the debt-holders must agree to the swap.” (News Press, July 23rd)
Court Rules For Matawan In Train Station Suit. “The Appellate Division of the New Jersey Supreme Court ruled July 14 that the borough of Matawan and its council did not act improperly when they passed a resolution in December 2002 designating the Columbia Group as the redeveloper for the train station… Borough Administrator Fred Carr: The Columbia Group has teamed up with K. Hovnanian (HOV) and Mack-Cali Realty Corp. (CLI) as the redevelopers for Matawan's portion of the project. K. Hovnanian would be responsible for the residential portion, the Columbia Group would be responsible for the office space built and Mack-Cali would take care of the commercial and retail venues.” (Independent, July 22nd)
Centex Could Face Wrongful Termination Lawsuit. “A former division president for Centex Homes… plans to file a wrongful termination complaint against the homebuilder. Douglas Pautsch, Jr., a 10-year Centex (CTX) veteran, was let go earlier this month when the builder consolidated its California Central Valley division [with]
Toll Bros. Sells Final House.
GS Carolina Developments Hit Slowdown.
Land Sells For A Song.
Most Of Schulz Ranch To Be Auctioned Off.
Homebuilder Pulls Plug On SR200 Development In Ocala, Fla. “Lennar Homes was going to enter
Residents Sue Over Hercules Rd. Development.
Pali Research Starts KB Home (KBH) at Buy. “Pali Research initiates coverage on KB Home with a Buy rating and $22 price target, citing valuation: “KBH stands out thanks to its ability to recognize old strategies were not workable in this environment, then actually executing aggressively to change its ways. Overpriced inventory was jettisoned while significant cash generation occurred… Throw in a valuation at, or below, its peers and we believe investors have a winning combination... While this non-consensus call has its risks in this environment, we like the tradeoff." (Street Insider, July 21st)
Las Vegas Review-Journal Real Estate Column. “KB Home is moving forward with construction and sales of affordable townhomes at Inspirada, a master-planned community in west
Hovnanian Chairman Shows the Midas Touch. “The [stock price] chart highlights large insider buys and sells by Hovnanian’s chairman Kevork Hovnanian. From October 2004-July 2005, the chairman sold over 800K shares near the peak of the housing boom for… almost $54 million. After a decline from $70/share to under $5 in January, Mr. Hovnanian decided to start buying back what he sold in '05. So far this year, he has bought back nearly 75% of the stock he sold, for over 90% less than he originally sold it for! And his purchases this year have both been at or near short-term bottoms as well. Talk about buy low, sell high.” (Bespoke Investment Group, July 21st) [Click to enlarge]
Pulte Homes Cuts 11% of its Georgia Staff. “There were Cutbacks this weekend from a top national homebuilder as the Commerce Department reports construction of single family homes was at a 17-year low in June. The latest to feel the economic downturn is the Georgia Division of Pulte Homes. The Company confirmed that it's cutting 11% of its
Meritage Shares Rise After Revised Credit Accord. “July 18 SEC filing: Shares of home builder Meritage Homes Corp (MTH) rose 9% on Monday after the company said it had reached an agreement to revise the terms of a credit line. Guaranty Bank has agreed to reduce the borrowing capacity on its credit line to $500 million from $800M and increased its interest rate by 1 percentage point.” (Reuters
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