"Home builder Beazer Homes USA Inc
"Beazer, which faces a deteriorating U.S. housing market as well as two separate probes related to its mortgage-origination business, said it believes the default notices are 'invalid and without merit.'"
Right. The notices are "invalid and without merit". It might seem like that if one is too ignorant to connect the dots. Beazer should be the first publicly traded homebuilder filing for bankruptcy.
The stock has lost two-thirds of it's value since I recommended selling it more than two months ago.
2 comments:
I'm a new Beazer homeowner and it has been quite an unpleasant experience. The current housing market is doing quite a number on the value of my home. However, Beazer is doing quite another. Beazer is not only assisting in the falling value of my home, but Beazer is having a fire sale within my housing development in order to raise cash. Beazer is a total disgrace to the American public who brought their product. As a customer I feel disrespected and ignored. I would never puchase another Beazer home. Homebuilders are punishing homeowners who bought in a slowing market that they (homebuilders) were apparently ill equipped to handle. It's a shame that the homebuilders were not more responsible with the monies earned during the period when home appreciation was through the roof.
I'm a new Beazer homeowner and it has been quite an unpleasant experience.
I'm sorry to hear about your bad experience in purchasing a home. In my opinion, the experience of buying a home should be joyful and fulfilling, not a headache.
Beazer is not only assisting in the falling value of my home, but Beazer is having a fire sale within my housing development in order to raise cash.
That's really bad, considering house prices are largely based on comparable sales within the neighborhood. I guess the thinking at the company goes something like this: it doesn't matter how many customers they burn because if they don't survive this downturn there will be no company to serve return customers. It's all about self-preservation.
It's a shame that the homebuilders were not more responsible with the monies earned during the period when home appreciation was through the roof.
I agree. I'll bet that the people at Beazer were drinking some awesome kool-aid when they were preparing their three and five year business plans in 2004 and 2005. Who wants to be that those projections were based on inflated, housing-bubble sales figures and real estate prices?
And I hate to bring this up, but Moody's recently announced that their expectation of the housing market looks bleak until 2009 or beyond:
"Moody’s has peered into its crysal ball and determined that not only will the housing slump not rally anytime soon, it should get even worse. For the next several years."
On Monday Moody’s Investors Services explained that it expects the housing-market-slump to last at least until 2009. This, in turn, will likely lead to numerous ratings downgrades for publicly traded homebuilders."
Keywords in that passage are: "at least until" and "next several years". You might expect that fire sale to continue indefinitely until the company goes belly-up or until the housing market recovers. I think the former will happen much sooner than the latter.
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