SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Bill Wexler's Trading Cabana
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RockyBalboa who wrote (1814)3/22/2007 7:42:35 PM
From: RockyBalboa  Read Replies (5) of 6370
 
I looked a bit at TOA and it is essentially a Ch.11 candidate. Its balance sheet is so weak that its equity is doubtful. TOA was a hedgefund's "football" stock and now it is sucked dry.

But there are others. The repercussion of excess unsold homes and price cuts in offers is that the inventory will likely be written off over time. This can turn balance sheets upside down. There are others.

NVR is listed as one of the few winners thanks to little debt but if they do not suceed in selling homes they will eat through the equity in little time. Remember it is not the debt alone its about revenues, profitability and inventory tied up which is a liability in times when homebuilders need to write it off... the second worst company thanks to leverage is CENTEX CTX

I wonder what the rationale in WLS was. I would't have taken it out at htis price and at this point in the cycle.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News