WCI Communities, Inc.NYSE
WCI Communities: Niche Homebuilder Trading Below Understated Book Value
Jim Roumell • 13 Comments
Jim Roumell • 13 Comments
Thu, Sep. 22, 12:44 PM
Thu, Sep. 22, 9:18 AM
Thu, Sep. 22, 7:05 AM
- The cash and stock deal valued at $23.50 per share is a 37% premium to WCI's (NYSE:WCIC) close yesterday, and gives the company an equity value of $643M and an enterprise value of $809M.
- The current plan is for Lennar (NYSE:LEN) to pay $11.75 in cash and common stock valued at $11.75 for each share of WCIC.
- The deal combines two of the largest Florida homebuilders, and includes a portfolio of owned and controlled land by WCI totaling 14,200 homesites - mostly located in the Florida coastal markets.
- WCI has a 35-day go-shop period.
- WCIC +34% premarket to $23.
Thu, Aug. 25, 5:57 PM
- Mettler-Toledo (NYSE:MTD) is set to join the S&P 500 effective Sept. 2, replacing Johnson Controls, which is being acquired by fellow index member Tyco International.
- S&P SmallCap 600 member Monolithic Power Systems (NASDAQ:MPWR) will replace MTD in the S&P MidCap 400, and WCI Communities (NYSE:WCIC) will replace MPWR in the SmallCap 600.
- Nautilus (NYSE:NLS) will replace Outerwall, which is being acquired by Apollo Global Management, in the S&P SmallCap 600.
Wed, Jul. 27, 7:00 AM
Tue, Jul. 26, 5:30 PM
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Thu, Apr. 28, 12:43 PM
- WCI Communities (WCIC -5.3%) yesterday reported a sizable earnings beat, but new orders fell 1.9% to 310 during the quarter. They had risen 30% in Q4.
- At issue may have been Easter occurring in March instead of April, as Raymond James analyst Buck Horne notes 35% order growth in February, and a 24% contraction in March.
- Also at work, suggests Horne, was a warm winter outside of Florida this year, stock market volatility, and higher home prices.
- "[I]t now appears active adult demand in Southwest Florida was more deeply impacted this spring by a variety of factors, which in turn, reduces our visibility on a near-term catalyst to support a Strong Buy rating," says Horne, downgrading to Outperform.
- Previously: WCI Communities beats by $0.08, beats on revenue (April 27)
Wed, Apr. 27, 7:00 AM
- WCI Communities (NYSE:WCIC): Q1 EPS of $0.25 beats by $0.08.
- Revenue of $138.31M (+41.6% Y/Y) beats by $16.41M.
Wed, Feb. 17, 6:57 AM
- WCI Communities (NYSE:WCIC): Q4 EPS of $0.37 in-line.
- Revenue of $165.02M (+9.6% Y/Y) beats by $2.1M.
Oct. 28, 2015, 6:47 AM
- WCI Communities (NYSE:WCIC): Q3 EPS of $0.38 beats by $0.07.
- Revenue of $150.19M (+67.5% Y/Y) beats by $5.16M.
Sep. 11, 2015, 8:08 AM
- Alongside upgrades to Toll Brothers, PulteGroup, and Meritage Homes, JPMorgan downgrades Taylor Morrison Home (NYSE:TMHC) to Neutral, and WCIC Communities (NYSE:WCIC) to Underweight.
- WCIC has had a big year, up 30%, though TMHC is higher by just 2% over the same period.
- Previously: JPMorgan pulls sell recommendations on three homebuilders (Sept. 11)
Sep. 9, 2015, 8:00 AM
- There's been no correction for the hot-handed Florida homebuilder, now higher by 37.5% this year. Cashing in its chips, Sterne Agee downgrades WCIC to Neutral from Buy.
Jul. 29, 2015, 7:17 AM
- WCI Communities (NYSE:WCIC): Q2 EPS of $0.37 beats by $0.07.
- Revenue of $150.71M (+62.1% Y/Y) beats by $10.23M.
May 15, 2015, 12:18 PM
- The summer pattern for the builders is typically the opposite of the winter "hope trade," says Raymond James, noting the sector has underperformed the S&P 500 in 21 of the last 30 summers, with the average underperformance being 490 basis points.
- Not downgraded is WCI Communities (WCIC +1%), which remains a Strong Buy. "We see a special situation with one of the strongest growth stories in the industry, backed by a deep and highly valuable Florida land base, producing better-than-expected margins while trading at a deep discount (20%+ on most metrics) to its larger cap peers."
- Also not downgraded is D.R. Horton (DHI +0.4%) thanks to its exposure to first-time homebuyers.
- Downgraded, but still an Outperform is Toll Brothers (TOL +1.6%), thanks to the "unsurpassed quality" of its "remarkable land assets."
- Downgraded to Market Perform from Outperform: KB Home (KBH +1.8%), Lennar (LEN +0.1%), M.D.C. Holdings (MDC), PulteGroup (PHM +1.3%), Standard Pacific (SPF +0.5%), and Ryland (RYL +0.5%).
- Previously: Homebuilders downgraded across the board at Raymond James (May 15)
Apr. 29, 2015, 7:04 AM
- WCI Communities (NYSE:WCIC): Q1 EPS of $0.21 beats by $0.07.
- Revenue of $97.7M (+32.4% Y/Y) beats by $0.95M.
Apr. 13, 2015, 4:06 PM
- WCI Communities (NYSE:WCIC) launches a 3.25M share secondary offering for selling shareholders. The underwriter greenshoe is for another 487.5K shares.
- Previously: Citi rings the register on WCI Communities (Feb. 27)
- Previously: Hot hand continues for high-end Florida homebuilder (Feb. 25)