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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (63717)	5/10/2005 8:36:16 AM
From: Amark$p	Read Replies (1) \| Respond to of 74559

TOL found some secret sauce... Luxury homes builder Toll Brothers Inc. (TOL: news, chart, profile) said its backlog in the second quarter rose 57% to $5.9 billion, with contracts up 38% to $2.2 billion and home building revenue up 51% to $1.2 billion. The backlog and contracts were the best in the company's history.

To: TobagoJack who wrote (63717)	5/10/2005 4:35:44 PM
From: energyplay	Read Replies (1) \| Respond to of 74559

Why wouldn't we see the same situation as DRAMs, where Japan and Korea built too many DRAM factories, and sank prices ? It takes an expensive, complex factory and skilled people to make DRAMs - but when there is too much capacity, the price erodes. The people who buy DRAMs like HP for printers, Nvidia for graphics boards - benefit from the lower prices without having to significantly cut their own prices. Looking at Charter Semicondutor of Singapore, which was supposed to be a clone of TSMC and UMC -it has had a hard term making money. ****** I would expect that a Gap Stores, Macy's and others who have good real estate locations, house brands, deals with brands like Tommy Hilfiger, and advertising budgets, would be able to make much more profit selling shirts than the hundreds of companies making shirts. Longer term, to you expect some of the factories to build their on brands, retail locations, etc. to capture additonal margin ? Honda went from making piston rings, to motors for bicycles, to motorcycles, and now cars. From the consumer back, Nike started selling European shoes out of a car trunk, then sourced from Korea, then Indonesia, and now a dozen places. Do you see starting at one end of the chain having an advantage over starting at the other end ?