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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (1823)	3/27/2007 5:45:47 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

....infects Beezer Homes: NEW YORK, March 27 (Reuters) - U.S. authorities are investigating the lending practices and some other dealings at Beazer Homes USA Inc. (BZH.N: Quote, Profile , Research), one of the largest U.S. home builders, BusinessWeek reported on Tuesday. Beazer Homes said in a statement that it could not comment on or verify any investigation, but added, "However, we will fully cooperate with any investigation by any government agency." Federal investigators could not be reached for comment. BusinessWeek said the North Carolina field offices of the Federal Bureau of Investigation, the Internal Revenue Service and the Justice Department recently opened a joint probe into the home builder's lending practices. Beazer is based in Atlanta, Georgia. The Inspector General of Housing and Urban Development was also part of the investigative group because a large number of Beazer's loans were made to low-income borrowers and insured by the Government National Mortgage Association, BusinessWeek said. The investigation follows a series of articles published by The Charlotte Observer newspaper in March, which detailed allegations of abusive lending practices and high foreclosures in a number of Beazer developments, BusinessWeek said. The Observer's investigation alleged that foreclosure rates in several Beazer developments ran at around 20 percent, compared with the national average of 3 percent. At the time, Beazer said in a written statement the high foreclosure rates were an anomaly, BusinessWeek said. Last week, a North Carolina law firm filed a lawsuit in state court seeking class-action status against Beazer, accusing the home builder and its mortgage company of selling mortgages to unqualified buyers. The suit said Beazer Mortgage would advise or encourage prospective buyers to falsify information in their loan applications. The suit also said the company changed information on loan applications by the prospective buyers for buyers to qualify to buy a home in the Beazer subdivision. The suit seeks damages for each class member of less than $74,999. Beazer said in its statement that based on its internal investigations to date, "We have not found any evidence to support the allegations in the Charlotte Observer." In after hours trading, Beazer shares were $26.81 compared to a close of $31.41 on the New York Stock Exchange.

To: RockyBalboa who wrote (1823)	5/2/2007 1:04:05 PM
From: RockyBalboa	Read Replies (3) \| Respond to of 6370

Centex Gives Inventory the Chop By David Lee Smith May 1, 2007 Major homebuilder Centex (NYSE: CTX) followed last week's lead by its peers Pulte (NYSE: PHM) and Beazer (NYSE: BZH) when it described the current housing market as too uncertain to provide forward guidance. And yet, if you dig beneath the surface, there is some good stuff to be obtained on the nation's housing crisis. Centex generated income of $1.60 per share in the fourth quarter, compared to $3.04 last March in what seems like a totally different era for housing. But the most recent results include sales of assets -- mostly the disposition of the company's commercial construction and subprime mortgage operations. On a continuing operations basis, Centex lost $22.3 million, or $0.18 a share, in the quarter, a much greater loss than had been anticipated. But as has been the case in recent quarters, Centex's management has remained far more active in chopping its inventory of land and options than have many other builders. In the March quarter, for instance, while closings decreased 14% year over year, homebuilding results were also hit by option write-offs totaling $96 million and by $106 million in "land valuation adjustments." Nevertheless, Chairman and CEO Tim Eller and his minions continue to seek to reduce both land positions and the inventory of spec homes. Eller noted during the call that March was a particularly difficult month, with "media noise" regarding subprime woes apparently causing some buyers to "take a pause." It was also in that month that management "began to see people unable to obtain financing." Which tells old smarty me that lending standards are finally and perceptibly being tightened. And while this phenomenon obviously is appropriate, it is also likely to delay housing's recovery. To wit, a growing number of companies -- now including Centex -- are refusing to provide a look ahead at probable results for this year. Nevertheless, I continue to believe that patient Fools will be able to realize values from some of the builders over time. My favorites, given an extended time horizon, continue to be Centex for its management strengths and Toll Brothers (NYSE: TOL) for its luxury niche position. ------------------------------------------- Edit > I am not sharing the fools opinion. At these levels HB stock are not cheap.

To: RockyBalboa who wrote (1823)	10/12/2007 12:32:35 PM
From: RockyBalboa	Read Replies (1) \| 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.