Housing Industy Information

Implications: The headline article lets us know that one in five homeowners is concerned about the possibility of foreclosure.

I have other market information I am able to share with you without conflict.

Analysis:

I was contacted regarding re-trading a large portion of a major homebuilder's land portfolio.  The terms of existing acquisition contracts and the cost of property in inventory don’t work for this homebuilder.  I’ve worked on this kind of a problem three times in the past – once on a major property specific basis and the other two on a company wide need.  All three turned out badly for the land owner as the organization requirements were not set up correctly.  The issues center around the facts that the perpetrators of the acquisition misdeeds wish to remain in place to guide any possible program and can't generate credibility with investors, land sellers and governments.  More appropriately, the re-trader needs to be a new CEO with the credibility to gain concessions - the offending management team needs to leave.  Acquisitions are made in positive periods and results come home to roost in less positive times when the numbers projected aren't produced.The less productive times destroy the model and the enterprise fails. As we know, that’s what’s happening to the home building business now.  I don't see the possibilities here, so I declined as I believe any such effort is wasted time and money for the company without a management change.