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Non-Tech : KBH - Kaufman & Broad Home -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (5)	7/18/1999 1:22:00 PM
From: Ted The Technician	Read Replies (1) \| Respond to of 7

I'm excited about KBH moving towards a DELL model; however, its recent level of acquisitions is not consistent with the DELL model... Dell achieved its current market position and premium value through superior efficiencies - Dell is more valuable than CPQ even though CPQ has a larger market share than Dell, and Dell will continue to take market share. Despite KBH's good earnings numbers and improving construction margins, this stock is being held back because of its increased inventory and goodwill levels. The company's recent strategy of growth (namely the Lewis homes acquisition) has negatively and significantly impacted the company's strategy of an improved balance sheet. KBH's growth strategy and its strategy of an improved business model are not always complementary. Huge acquisitions impact the balance sheet significantly. These unpredictable impacts to the balance sheet also reduces investor confidence in the stock price, especially when the benefits are not realized immediately. I'm sure a better decision could have been made. In the meantime, I would like to see the company slow down on its buying spree and work on improving the balance sheet. Ted the Technician