Toured all of Comstock's projects over the weekend
Shady Grove Project: Shady Grove property is completely vacant as of now, has Comstock sign up and has a county sign detailing the proposed development. This project was said to begin development in June.
Falls Grove Project: Falls Grove property is completely vacant, with the exception of a trailer that may have been on an adjoining property, not sure. Comstock had a sign up on the property but no sign of beginning development. This project was said to begin development in June.
Seeing these two properties completely vacant saddened me a little, but technically June isn't over yet.
Villas at East-Gate: Boy were these NICE condos! They are building 11 6-unit buildings, with 44 of the 66 sold as of talking to the lady in the office this morning. She said they are slowing the release of them now because they sold so fast. They have completed 3 of the 11 buildings and the 4th was coming along nicely. With 5 settlements in the first quarter, and 35 in the backlog as of the Q1 release, it appears that only 4 additional units have been sold in the last 5 weeks or so. Not particularly worried because of how nice the units are, and they are certainly selling them significantly faster than they can build them.
Hampshires: Hampshires looked great and I saw several other customers milling around the sales office when I was there. They have not yet completed the model home for the townhomes and the lady from Comstock said they expect more sales once the model is completed. She guessed that it could take up to 2 years to build and sell the rest of this project, but the revenues here are huge. 73 townhomes x 535,000 + 38 Single Family homes x 740,000.
After my tour of all 4 current projects I am left worrying a little about a rough patch in revenues coming in the fall. The woman I spoke to at the Hampshires said they had already received alot of interest in pre-sales for the Shady Grove and Falls grove projects, but they will need those sales to smooth their revenues for the year. I am wondering how they are going to report a growing backlog and still hit their 64-69 million revenue number for the year unless the sales for Shady Grove and Falls Grove start rolling in asap. If they were to report a nice Q2 with 23 million in revenues and a nice profit, and yet the backlog fell, I am wondering how the stock would react. I am going to try and get some eyes on FG and SG projects again in 10 days and see if they have broken ground yet. That would assuage some of my concerns
Roger, thanks for that write-up as well as the write-up of the meeting. It is nice to have someone that cares actually collect some of this info for those of us that can't be here. By the way, I actually come from project management, so I'm not as concerned with the June starts as dates shift a little by nature and a lot of time the time can be absorbed during other parts of the project. I am very glad to hear that they are trying to slow down the sales a little. It sounds like they are trying to portion out their sales between quarters to build solid revenue throughout the year!