Per the recent 10Q, MTH has utilized all of their
tax net operating loss carryforwards. As I read
earlier filings, these NOL's were the reason noone could
purchase more than 5% of the stock and no insiders could
purchase more stock.
Is there any thought whether
the Board will now eliminate the 5% limit on
ownership of this stock, as a change in control will not
effect MTH's taxes?
If one was to compare land and house cost between
two different areas the rule of thumb makes more
sense. If the cost of a lot in Arizona is $50k and in LA
say $100k then the price of construction does scale,
because the type of house and the construction cost are
not the same in the two areas.
SO, WHOA, down a
third and at least in my mine a more compelling
reason for stock buy back. Buying stock is an
investment. Companies buy back stock because they view stock
buy back as the best investment of their dollars, ie
better than R&D, better than buying land under the
present circumsxtances, better than leaving the money in
the bank. That means, in the bank case, that the
return on investment is greater than what ever the
prevaling interest rate might be, say 5% to 8%. This is
what makes those who buy stock think that returns
inthe next few quarters to years will return more than
interest baring accounts, and therefore they buy the
This isn't myterious.
"The way I read it, mth_fan was
claiming the cost to build the house scales up with land
cost based on a constant land/total cost ratio, which
makes no sense."
I don't think I said that. All
I commented on was the conference call.
By the way, psusongs, your numbers are correct.
The way I read it, mth_fan was claiming the cost to
build the house scales up with land cost based on a
constant land/total cost ratio, which makes no
Now, on to new business: I have been watching these
homebuilder stocks for a while. Got a little MTH a few months
ago, sold it when I had another stock I was itching to
I see the homebuilder stocks are still dirt
Anyone have opinions on when they're going to go out of
the doldrums? I'm looking to start buying some in the
next couple of months, but hope the window of
opportunity doesn't close on me before I'm in.
for a buy-back. 1. Decrease # of shares
thereby increasing earnings per share and,
a concommitant increase in stock price. 2.
Repurchase shares to use as tender
to buy other companies
or for an employee
What's your guess?
I still believe a dividend program
the attention" of the market. Especially
increased earnings have done nothing to move