SA News • Tue, Nov. 18
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There are 3 articles on this stock available only to PRO subscribers.
- Controlling shareholder group has a very low cost for their investment and has been structuring the company to perform like a call option by increasing the risk.
- Although well within the bounds of GAAP rules, presented earnings are exaggerated on many levels and fails to reflect the economy of the company in a realistic way.
- Current prices suggest that a very large premium is paid over normal book value and intangible book value.
- The incentives of the controlling shareholder group may conflict with what a conservative long term investor wants for WLH. Hence, the company and stock will likely be speculative.
William Lyon Homes: Nice Deal, But Has It Failed To Learn Its Past Leverage Lesson?The Value Investor • Tue, Jun. 24
- William Lyon Homes makes a nice strategic deal at first look.
- The deal will add significantly to the company's operations at what appear to be reasonable financial terms.
- I am very troubled with the built-up in leverage, given the company's bankruptcy as recently as 2011.
William Lyon Homes: A Play On The Housing Recovery
Tue, Nov. 18, 3:56 PM
- The IPO market remains hot - 344 companies have filed to go public so far this year, the most in a decade - but not so for homebuilders. After eight builders raised $1.77B issuing new shares in 2013 and 2014's first half - the first IPOs since 2004 - the momentum has faded as the pace of new home sales remains sluggish.
- “The public equity market right now is not an attractive place,” says Utah-based Woodside Homes chief Joel Shine. His company filed for an IPO in March, but instead decided to raise capital from existing investors and by issuing $50M of debt. The company in H1 posted sales roughly flat with that of a year ago.
- Of the eight builder stocks gone public sine 2013, five - TPH, CCS, WLH, UCP, TMHC - now trade for less than their IPO prices, while two - NWHM, WCIC - are modestly higher. Only one - LGI Homes (NASDAQ:LGIH) - has significantly outperformed the S&P 500.
- ETFs: ITB, XHB
Mon, Nov. 17, 12:47 PM
Fri, Nov. 7, 8:34 AM| Comment!
Wed, Aug. 13, 10:05 AM
- Q2 net income of $12.285M or $0.38 per share vs. $6.85M and $0.29 one year ago.
- Home sales revenue of $168.2M up 39% with ASP up 43% to $500.5K. New home deliveries of 336 down 3%.
- Net new home orders of 360 up 8%; dollar value of $195.4M up 27%.
- 41 active selling communities up 28%. The Polygon acquisition added 12 in the Pacific Northwest. About 75 active selling communities are expected by mid-2015.
- Backlog of 544 units up 6%; backlog value of $303.3M up 47%.
- Previously: William Lyon Homes beats by $0.04, beats on revenue
- WLH -0.9%
Wed, Aug. 13, 8:36 AM| Comment!
Mon, Jun. 23, 7:27 AM
- William Lyons (WLH) agrees to the purchase of the residential homebuilding business of Polygon Northwest Homes for about $520M in cash. The purchase will include more than 4.2K lots in the Seattle and Portland markets, with the deal expected to close in Q3.
- Polygon's residential home operations did about $292M of business in 2013, with a GAAP gross margin of 27.1%, and revenues are expected to rise to about $300M this year and $450-$500M in 2015.
- Source: Press Release
Fri, May. 9, 9:02 AM
- Home sales revenue of $140.3M (up 84% Y/Y)
- Adjusted gross margin of 27.6% (up 440 basis points)
- New home deliveries of 276 homes (up 3%)
- Average sales price of $508.3K (up 78%)
- Net new home orders of 400 (up 11%)
- Dollar value of orders of $199.2M (up 51%)
- SG&A expense of 13.3% (down 400 basis points)
- Adjusted EBITDA of $20.3M (up 342%)
- Dollar value of backlog of $264.8M (up 55% and translates into ASP of $538.2K)
- CC at 12 ET
- Source: Press Release
- Previously: William Lyon Homes beats by $0.14, beats on revenue
- WLH +5.5% premarket
Fri, May. 9, 8:32 AM| Comment!
Fri, Mar. 14, 8:23 AM
- It's about lackluster demand and declining gross margins, says Credit Suisse analyst Daniel Oppenheim, pointing to his firm's monthly "buyer traffic index" survey. It fell two points in February at 36 and compares to a read of 65 in February 2013 and 62 a year before that. The 36 print is the lowest since February 2009 and missed expectations for 50.
- "We expect the stocks to reflect these observations as macro housing data and homebuilder orders and gross margins come in short of expectations."
- Wednesday: Credit Suisse pulls Buy ratings on Toll Brothers (TOL), PulteGroup (PHM), and William Lyons (WLH).
- Monday: More downgrades
- ETFs: XHB, ITB
Wed, Mar. 12, 7:21 AM
- Three more downgrades hit the homebuilders, with Toll Brothers (TOL), PulteGroup (PHM), and William Lyons (WLH) being cut from Buy to Hold at Credit Suisse. At the moment, a combination of higher mortgage rates and higher home prices has the Street worried about the sector.
- On Monday a different set of homebuilders suffered three downgrades at the hands of BAML and Citigroup.
- TOL -1.5% premarket
- ETFs: XHB, ITB
Fri, Feb. 14, 8:41 AM| Comment!
Fri, Jan. 31, 11:49 AM
- The homebuilders continue a big move higher this week as the sector reports better-than-expected results from Q4, and now has the tailwind of lower rates behind it. Off four basis points to 2.66% today, the 10-year Treasury yield has tumbled about 35 basis points in January.
- A couple of upgrades has Jefferson Research raising D.R. Horton (DHI +3.5%) to a Buy and RayJay upping Pulte Group (PHM +4.5%) to Outperform.
- ETFs; XHB +1.4%, ITB +2.3%
- Toll Brothers (TOL +3%), NVR (NVR +3.6%), William Lyons (WLH +1.1%), Hovnanian (HOV +2.2%), Lennar (LEN +3.4%)
- The New Home Company (NWHM) is up 10% from last night's IPO price of $11, but the pricing range had been expected at $15-$17 per share.
Nov. 11, 2013, 8:56 AM
Oct. 14, 2013, 11:35 AM
- The average mortgage payment on a median-priced U.S. home as a share of income rose to 16% in August, according to the NAR. It's all about interest rates, as the rise occurred even as median prices slipped slightly this summer.
- Still - by this measure - homes are still more affordable than at any time between 1989 and 2008.
- The homebuilding sector is among the worst-performing today amid this news and word of rising incentives (lower profit margins) now necessary to move product.
- ETFs: ITB -1.9%, XHB -1.6%.
- TOL -2.1%, RYL -3.1%, HOV -1.4%, WLH -3.5%, PHM -2.9%.
Aug. 8, 2013, 10:20 AM| Comment!
Jun. 25, 2013, 11:28 AMWilliam Lyon Homes (WLH +2.3%) gets a boost coming out of its quiet period as home prices grew at the fastest pace in several years. That being said, Citigroup and Credit Suisse both start the shares at Outperform with price targets of $28 and $29, respectively. Specifically, Credit Suisse cites the home builder's solid geographic exposure, expectations for 40% annualized growth in community count and significant margin expansion. JPMorgan initiates coverage with a Neutral however, saying its strong position in California and Arizona is already baked-in to the price. | Comment!
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WLH vs. ETF Alternatives
We are one of the largest Western U.S. regional homebuilders. Headquartered in Newport Beach, California, we are primarily engaged in the design, construction, marketing and sale of single-family detached and attached homes in California, Arizona, Nevada and Colorado. Our core markets include... More
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