CM001

KB Homes: Frozen on the Bridge?

"Essentially they are telling you that the backlog number is no longer the predictable factor that it used to be"

The way I see is, the backlog numbers improved from 1Q to 2Q. That's all they are saying and I believe your inference here is wrong.

"Imagine what Macy’s would look like if 20% of all sales were returned."

I see the cancellation rate is improving. If you could present how the cancellation rate was in the past and compared it makes sense. If you look other builders the rate is in similar numbers. In fact even the luxury builder like Toll has 20% cancellation rate.