The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: saveslivesbyday who wrote (60477)	8/22/2006 9:28:08 PM
From: ChanceIs	Read Replies (1) of 306849

>>>how-much-lower-can-they-go-they're-already-at-book-value crowd.<<< Book value. Blah. I held Calpine down to 1/4 book in Oct '02 thinking just that. What an error. At least Calpine had hard tangible assets - you know electrical generators, turbines, natural gas fields. What does a house building company have on its balance sheet on the asset side??? Options on land. Oh yes. So much smarter than last time with options vice direct land ownership. No loans against the land, no real estate taxes, no maintenance costs. Its just that with every passing day, those options are worth less. Drip, drip, drip. We hear more and more about writing options off every day. And every day that book value drops. Book value. How much of that is good will - from perhaps overpaying for the acquisition of smaller homebuilders?? Isn't that the reason this time is different?? The major are acquiring all the minors and consolidating. I have heard this before.

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