graphrix_IHB
New member
<p>You can listen to the <a href="http://www.videonewswire.com/event.asp?id=42287">conference call here</a>. </p>
<p>It was a long call at over a hour but even the MSM isn't going to point out all the good points. What I found interesting was the constant questions from the analysts about the mothballing of the land they hold. Mothballing is what is commonly know as sit and wait until the market comes back. I think we are seeing this with CPW and the Great Park. Also he was funny when they got the question about their net tangible assets covenant on their credit lines. Their reaction was oh sh*t I knew we would be asked this question by the tone and the uhs and ums. They were also asked about the interest covenant that renegotiated. I'm not sure exactly what this means without knowing what the covenant is. If anyone knows please feel free to help.</p>
<p>Over 200 communities were impaired with about 33% being re-impaired.</p>
<p>They had a huge spike in cancellations in August and this is what caused the can rate to remain high.</p>
<p>They believe that one day the market will return to when it costs less to build than it does to sell a home. When that day is they wouldn't say.</p>
<p>On existing homes or resales the market has rapidily deteriorated and that only adds to the price declines.</p>
<p>They will not do the fire sales like that of other builders and do not plan on it in the future. Oh really?</p>
<p>Land has become so obsurdly low to the point it is almost valued at zero.</p>
<p>They spent $4mil on R&D and you can see this for yourself at the El Toro airbase. Yes they want to build an even cheaper product and spending a cheap $4mil to do is worth it.</p>
<p>They spent $4.5mil on a national branding ad campaign. I am surprised no one asked how well that went. </p>
<p>ALT-A loans account for 25% vs. 41% of the loans from last year. Also the ALT-A loans are not the same ALT-A loans of last year and that credit conditions have tightened greatly. </p>
<p>Other builders have not impaired their land to what is realistic.</p>
<p> They were higher on write downs and drop in new orders compared to their competition.</p>
<p>It was a long call at over a hour but even the MSM isn't going to point out all the good points. What I found interesting was the constant questions from the analysts about the mothballing of the land they hold. Mothballing is what is commonly know as sit and wait until the market comes back. I think we are seeing this with CPW and the Great Park. Also he was funny when they got the question about their net tangible assets covenant on their credit lines. Their reaction was oh sh*t I knew we would be asked this question by the tone and the uhs and ums. They were also asked about the interest covenant that renegotiated. I'm not sure exactly what this means without knowing what the covenant is. If anyone knows please feel free to help.</p>
<p>Over 200 communities were impaired with about 33% being re-impaired.</p>
<p>They had a huge spike in cancellations in August and this is what caused the can rate to remain high.</p>
<p>They believe that one day the market will return to when it costs less to build than it does to sell a home. When that day is they wouldn't say.</p>
<p>On existing homes or resales the market has rapidily deteriorated and that only adds to the price declines.</p>
<p>They will not do the fire sales like that of other builders and do not plan on it in the future. Oh really?</p>
<p>Land has become so obsurdly low to the point it is almost valued at zero.</p>
<p>They spent $4mil on R&D and you can see this for yourself at the El Toro airbase. Yes they want to build an even cheaper product and spending a cheap $4mil to do is worth it.</p>
<p>They spent $4.5mil on a national branding ad campaign. I am surprised no one asked how well that went. </p>
<p>ALT-A loans account for 25% vs. 41% of the loans from last year. Also the ALT-A loans are not the same ALT-A loans of last year and that credit conditions have tightened greatly. </p>
<p>Other builders have not impaired their land to what is realistic.</p>
<p> They were higher on write downs and drop in new orders compared to their competition.</p>
