mwatch

Are Homebuilders Ready for Another Drop?

The article make great point of how hoe builders are swiming against increasingly bigger tide. I want to add to what the financial part of the series of problem these builders have to deal with. On the supply side, the market is sitting on a huge unsold inventory, and with the next wave of foreclosure this unsold inventory will get even bigger, additionally, with what just happen the financial industry this past weekend, buyers will have second thought before they make any commitment. The question now is how and when the builders can return to profitability. Should we start using something like 5 year-forward PE forecast instead of one year?

Will Some Solar Companies Face a Cash Crunch?

This analysis has little value in term of valuing a whole company and that is why cash flow analysis is not one of the important metric. Cash flow analysis is only important when cash cow companies are valued as well as companies those are risking of turning down additional fund. These companies are in their expansion stage, they can't not be valued as matured one. Furthur, I don't see any of these companies is in risk of turning down additional fund that is not to say the risk is not increasing.