To all investors/traders!! This is part of an Article from Forbes.com. It's incredible! Another scandal like Enron! Wall Street are a bunch of criminals!!!!!! Just an Incredible story!
Talking Up His Own Book
Robert Lenzner and Victoria Murphy, 03.01.02, 7:10 PM ET
NEW YORK - Legendary hedge fund operator and confrontational television commentator Jim Cramer has been getting publicity from news that he's working on a juicy Wall Street story: his own biography. But the real dirt might be elsewhere.
In a soon to be released tell-all tale, former Cramer & Company employee Nicholas Maier accuses TheStreet.com's co-founder of using CNBC anchors and his own television appearances to promote stocks that he would promptly sell, making a quick gain on the upswing.
In Trading With the Enemy, to be published this month by Harper Business, Maier alleges that CNBC anchors Maria Bartiromo and David Faber were used like pawns to talk up stocks that Cramer's hedge fund had purchased. He did this by giving them heads-up on analysts' upgrades and downgrades in particular stocks.
Writes Maier: "We were the first firm most brokerage houses told such news [of upgrades and downgrades], and Jim decided to use this early-call status to help the reporters, who all wanted to break a story."
**** check the rest of article on Forbes.com****
NVR is conservatively estimating a 15% growth, as are other homebuilders.
The location of NVR is a key to its future growth - the Baltimore - Washington area. More people are retiring to smaller, single floor homes, and selling their 2 story monsters. This will only continue to happen.
Net profits reflect the salaries and other incentives, perks, entertaining, travel, etc., that do not happen in down markets. There is plenty of room for frugality, if a downturn appears, without losing the core of the business, or seriously deflating the per share price.
Lastly, they buy back more stock, in a downturn, to maintain the per share price.
The same can be said for the great American housing boom. The markets were staggered by January�s 16% surge in sales of existing homes to a new all-time record. But they shouldn�t have been. Mother Nature did the trick -- the last few months have witnessed the warmest nationwide temperatures in 105 years. It turns out that actual housing resales fell 17% last month (from 404,000 in December 2001 to 336,000 in January 2002). Since the heat wave limited the downside, the hocus-pocus of seasonal adjustment produced an extraordinary spike. But what the statisticians giveth, they must taketh -- the so-called seasonal factors always average out over the course of the year. All it takes is for the weather to return to normal -- and the seasonally-adjusted figures will fall like a stone.
Why go private to unleash value when the market is doing such a fine job of that already? The real estate boom is an old story and interest rates have nowhere to go but up. Peak demand is occurring right now.
Savvy management will use free cash flow to bolster the stock price enabling them to exercise options and sell into strength.
Excellent thought leadership here, but, would think going private would be counter to CEO Schar's & board strategy. These guys want to have the price per share in the thousand dollar and up league with Berkshire Hathaway.
This strategy started in reorganization in 1993 and continues today. Free cash flow is getting the outstanding under 5 million shortly & you are right on the money, growing revenues, growing earnings, less shares outstanding,,doesn't get much better than that either in the short run or long run.