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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (29190)	3/23/2005 11:53:31 AM
From: LLCF	Respond to of 110194

<e.g. it used to far more prevalent to build at least some inventory > Well, if the NSYE builders get caught with NO inventory into a downturn, that'll be news. <Construction loans, including land draw, are all on the hook awaiting this buyer.> AS far as I know, the option agreements on dirt have been there for a LONG time. <When speculative markets finally collapse, you will find a lot of messy unfinished projects that the smaller private builders simply cannot complete.> So the larger builders CAN complete them... and that's necessarily GOOD? I agree that all these guys have deeper pockets, but really none of this gets at my basic point... where will these stocks trade when earnings are zero? I can't imagine a homebuilder that plays this whole thing PERFECTLY isn't going to have years where they make no money. Is there a disagreement on that? DAK