Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (1822)	3/26/2007 1:07:17 PM
From: RockyBalboa	Read Replies (3) \| Respond to of 6370

The Centex virus. Debt on HB balances. To some extent HB are as vulnerable as subprime lenders though with a smaller gearing. In Centex Case, the gearing is 2.5 vs a good 10 to 15 for the financiers. But, here are not receivables but aging inventory the problem. The fact that the production is unsold, aging and the inventory therefore not realizable only slowly filters through balance sheets. Then the gearing will no longer be 2.5 and the equity not positive.