Rember for every dollar in the plus column you spend you have to make 3 dollars to replace it.You do understand that concept,right? PHM is burning cash like a biotech.60 houses in Florida in May is burning cash anyway you slice it. If,you had ever run a business you would get the 1 to 3 rule,as debit credit ratio.By the way that's at 100% profit margin.It increases exponentially as the margin decreases.It's based the amount of money your left holding at the end of the day(qtr),yr. ect.... The rules of accounting say PHM is burning cash,not me.Just do some simple cash method straight line accounting work on their numbers,you'll get it.PHM managment got it, months ago and dumped stock and coverted options.If,your long they threw you under the bus.
The train has left the station.Your standing on the platform.They are conveting stock and options to cash faster than Angelo Mozillo,or Dick Grasso,who taught them their lessons.
De Nile,this puppy(PHM) is in down a trend channel with an 11.45 confluence top,formed last week,kiss 15/16 confluence top goodbye.@11/12 now,this is the next leg down.
PHM's floating rate credit lines have all been ratched down,with notice not to draw,in effect leaving them the only option open is to issue stock for cash.Which means you stock will diluted downward if they need cash. Examples LEH,C,BSC ect... Prepare wisely.