These people make me sick. I hope every investor takes a long look in the mirror and realizes what an EVIL company this is.
OMG you should NOT be investing sir....YOU THINK and do not look at P/E's debt to equity..dooo you know any of these numbers..REALLY.....OK you simply say objective staements about management and "think" your smart.......you simply sir are out of your league and should sell your stock and get into something else..REALLY Please read my last few emails...pick another BUILDER other than this loser....ok maybe you do not know the difference between a balance sheet and a bed sheet but you MUST have money...HIRE someone SIR to explain the difference...PLEASE you are killing me
these m'f'ers said i would lose everything (deposit and home) if i did not show to closing, but get this, i threatened not to show to closing because on the day of closing the dumb arsses were at the home at 9am still finishing work they were suppose to finish a week earlier, from welding fences to painting walls to fixing doors that would not close. but yet PHM reps threatened me !!
to boot i had workers coming back for weeks/months/years after closing, fixing stuff that either wasnt finished or had failed.
PHM homes are cheap pos's masked by lipstick. for the price i paid (which was way too high) i thought i was getting real pine moldings, turns out its the cheapest shiat you can get, pressed cardboard!
if people want new cookie cutter shiat then buy a PHM built home. if you want something better then buy from a local "custom" builder, or hire a local builder to build a set of plans you can obtain for cheap from one of those home plans books at Home Depot.
please ask these naive people to simply read the balance sheet...omg........assets are stated at "what' PLEASE look HARD and if you are long this company go visit some of their properties......PLEASE.....I DARE YOU....
Once again I own 100 contracts short on Jan 12's Have at it ....... I know this venue is for morons with an agenda BUT I am serious about my beliefs........I do not know if this will hit the 6's or lower but I do know accounting and economics and I bet I win.........
I wonder that myself. I only realized some of this stuff after the fact. I'm really tired of the way this dog continually underperforms - almost every day - relative to peers. It all began on November 3. Other homebuilders went sideways and this one went straight down. Underperformance by almost 35% since then, and with some of the building materials stocks, even more. My thought was that once business returned to normal the underperformance would become "catch up", but it hasn't happened. PHM never seems to get its head up above water. It under-reacts to good news and over-reacts to bad news.
The problem has to be with the management and the lack of confidence that institutional investors have with them. Why would this one stock be singled out to trade differently from ALL the others? It looks like Bill Pulte gave the entire company over to Dugas and this one single guy doesn't have the necessary imagination to turn the company around the corner. A 35% relative underperformance to every peer in the industry is a grade of F for management in my opinion -whether Mr. Pulte or Mr. Dugas.
They need to do something radical and new. A new CEO wouldn't have any qualms about dumping what's left of Centex because he wouldn't have to make excuses for why he bought it in the first place. What were they thinking? Nearly a billion dollars in goodwill flushed down a toilet! 85% of the acquisition written off. There's no special thing that Centex had prior to the purchase (except a lot of debt), no special homebuilding technology or patented style of home that Pulte couldn't have developed themselves. And trained personnel or builders with experience? A dime a dozen after the crash. I have no idea why they bought this company. They got NOTHING from it that I can see, except a lot of land of dubious value.
So yeah...I regret this, but who knows, maybe something good will happen for Pulte? I hope so. They need a FRESH start, and that's why I mentioned that thing about moving their HQ out of the Detroit area. That has been a depressed manufacturing and housing market for the better part of 20 years. The growth areas are where people want to live - especially young people - not just cheap areas because no one wants to live there. Sure Detroit is cheap - but how about the crime, poor schools, and lack of jobs? Would you go there?
This response really blows me away. You spend so much time acting as moderator/mediator/pundit on this message board ... and then you point out some critical core business mistakes they've made and other issues they need to address that left alone would place them at a competitive disadvantage in a market they were obviously very interested in (entry level buyer) 2 years ago. Why don't you just jump ship to KB or Lennar? Why waste your precious time with this dog?
This posting from the NYT has been a microcosm of what can happen when emotions invade facts. Two people - expert in their separate (but related) fields of real estate and homebuilding - duking it out over a woman they don't know - suffering a loss she should have known better to avoid - from a company who's financial wing stole a subprime borrower from another bank. It brings up all the other hurt feelings, frustration & BS that every conceivable sector of homebuilding - buying, selling, funding, mortgages, loans, labor, banks, the Fed/Fannie/Freddie etc etc etc - has put up with these last 5 years. Horrible press, horrible circumstances, horrible losses for families and students, loss of dreams, loss of savings - you name it. A sea of heartache as far as the eye can see. And there's plenty of blame to spread around too, and plenty of wouldva couldva shouldva. Who could not point a finger and not be right?
LET'S MOVE ON. And see if we can scope-out what's ahead, rather than what's behind.
I for one think we need to get shareholder-active with the management of this company to address some issues pronto.
First of all - new home buyers - 1/3 of their business. Anyone here looked at their website? Young people are visual learners, soundbite savvy. If you look at Realtor.com or Move.com and KB Homes website or Lennar's - Pulte's site is LAME. Young buyers live, eat and drink the web - it's how they get their information. Pulte needs to start over from scratch and integrate what these tech savvy competitors are doing in their own web presence, or simply "contract out" the entire website to move.com or realtor.com. They need to work with some serious salespeople (young) who know how to reach young people. And design the kinds of young home that young people want for their families.
Second, there is something really suspicious about their land holdings. They say they have the largest land holdings of any builder. So what? Anyone moving to Detroit or Atlanta soon? Real estate is location, location, location - and if they don't have a location that looks viable in the next 3 years - sell the developed properties and dump em for whatever cash they can get for these holdings and start fresh. The way these legacy debt payments are impinging on margins (3%+) means they will underperform the other builders till they dump the dead wood. They have already "written off" a lot of what they got from Centex, so sell the rest.
Three, way way too centralized in the hands of Bill Pulte and Richard Dugas his young protege. Mr. Dugas answered almost every question on the recent CC. One man - one decision-maker - in charge of almost all aspects of Pulte homes?! There is a profound need for new creativity - for a leadership TEAM that can make hard decisions, that will dump losing concepts, not defend poor decisions (Centex) and seek out winners.
The tech companies (like CSCO) that made the hard decisions at the end of the dotcom boom and dumped their losers - their inventory that was outdated and not gonna sell - and moved to a business model that funded future business out of earnings rather than loans - eventually got out of debt, and are today - DEBT FREE. Pulte can do this if it gets onboard - NOW - instead of nursing dead wood that's not going to come back to life.
Lastly, how about a change of headquarters to one of the population centers where positive things are happening and growth is occurring? I can't think of a worse environment to live or work and make decisions in than the Detroit area. It is the epitome of old school, old times, that are long long gone.
CalculatedRisk has taken Gretchen Morgenson to the woodshed on many, many occasions for her shoddy & incomplete reporting and daft ideas.
This latest article is a cliched attack on Big Bad Business against the helpless mom. High on melodrama, low on fact.
My final word on this topic.
A contract is what is written and signed by both parties. If you are a buyer and you are putting $20,000, you better know what you are signing. If you can't make sense of it, don't sign and hire an attorney to help you out!
I would say most builders live by the contracts they sign, buyers need to do so as well.
OK you win I really do enjoy your remarks as you remind me of me. When I was younger. Full of spit and and all the other. But we started this little spat talking about Pulte and you have since taken it to me personally as you other board messages show you are likely to do. I have a small business to run according to you, and need to get on that instead of swapping spit with you. This all started because I was saying there are reasons buyers are not qualifying simply because, they do something to harm their score, the feds change the scores needed to buy the paper, job histories change from application to closing, etc etc. I have never known any business that cancels customers final closing or sales because they just felt like it. Do you? So what are the reasons Pulte would kill a deal? Businesses do not do that. My biggest competitor in my market is NVR they only kill deals when something changes the game beyond their control as listed above. Give all on this board the reasons why your customers were unable to close and did Pulte offer them a less expensive home or just kick them out the office, keep the deposit, and not offer them anything? These action do not make business sense.