Regarding the news on stimulus package by the new president and urge to bring back home pricces.. Is this the time to start buying home stocks like KBH?
I think its a going to be long and drawn out KB Home reports Q4 (Nov) results, beats on revs : Reports Q4 (Nov) loss of $3.96 per share, may not be comparable to the First Call consensus of ($1.23); revenues fell 54.2% year/year to $919 mln vs the $792.8 mln consensus. Company-wide net orders totaled 1,296 homes for the fourth quarter of 2008, down 50% from 2,574 homes for the fourth quarter of 2007. The year-over-year comparison improved from the third quarter of 2008, when net orders were down 66% from the year-earlier period. The Company's cancellation rate based on gross orders was 46% in the fourth quarter of 2008, compared to 51% in the third quarter of 2008 and 58% in the fourth quarter of 2007. As a percentage of beginning backlog, the cancellation rate was 23% in the fourth quarter of 2008, compared to 22% in the third quarter of 2008 and 30% in the fourth quarter of 2007. The number of homes in backlog at November 30, 2008 declined 64% from a year ago to 2,269, with decreases ranging from 51% to 73% across the Company's four geographic operating regions. Total backlog value of approximately $521.4 million at November 30, 2008 fell 65% from approximately $1.50 billion at November 30, 2007, reflecting year-over-year decreases in both the number of homes in backlog and the Company's average selling prices.