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Beazer Homes USA Inc. Message Board

  • mmdinn mmdinn Nov 16, 2007 12:42 PM Flag

    Smith Barney Advisor: Beazer Cash Infusions.

    Im still holding my Long shares but once a week I ask for advice or information. Although it was against my Broker's advice, I Purchased Beazer anyway in August. My advisor said yesterday that "Beazer is expecting some significant Cash infusions within the next 2 weeks" and is "revising some current credit through recent Shelf Registrations"...I was just wondering what he means by Shelf Registrations?..Thanks for any response.

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    • Montuno, I remember being wowed by Imax. The effects are great. Even considered investing in it in the late 80's but kinda lost track.

      Re SRS, thanks for the suggestion. Not someting I'm familiar with so my comments may be a little off base.

      If SRS is exposed to commercial RE, would that not entail some element of stability in rents ...atleast in the short term? I believe votingmachine was kind of thinking along the same lines.

      My thinking here would be that the timing could be difficult in terms judging when financial results might be impacted from increasing vacancies in the commercial RE space.

      If income is derived from long term leases, I would want to have a feel for any lag effect but I like the idea for the longer term.

      Right now I'm seriously mulling over LVS in the gambling space. I have to think with the pressures we will see on disposable incomes, these businesses will really feel it over the coming Holiday season and the bloated PE's could come back to earth.

      But I have to admit, other than the big picture, I don't know much about the sector or who the ugliest ducklings might be so if you have any insights I'm all ears.

      Have a great Thanksgiving all...and that goes for any longs as well!!!

    • I am kicking myself for selling my SRS over the last few days ... I sort of expected a dead cat bounce ... if it happened, I would have saved a few bucks, instead I see I should have held longer.

      One thing to remember about SRS is it also has exposure to the REIT side, so it can move a bit out of synch to the HB's. Commercial REIT's would seem to have less downside risk o me. As I said,I don't have a position there, but do you include that in your negative assessment of the commercial side?

    • Beazer has been renegotiating with its creditors for the last several months. The facts indicate, they have been given more cushion to operate.

      Below are the facts

      Shelf registration is likely a convert of senior bonds to common or preferred shares. The cash infusion you mentioned is simple part of the ongoing negotiations. As you can tell the creditors are working with Beazer rather than turning the screws. Beazer will likely be given more time (3 quarters) to show improvement before the creditors turn the screws.

      • 1 Reply to gordonnicko
      • The shares are not worth enough to convert meaningful amounts of the outstanding debt. The dilution would be horrific on the longs. And, the threat of a short squeeze would be over.

        Also, on the partial info they released for 9/30, where is the mention of the payables and the accrued expenses? Why shouldn't this be public info by now? I mean we haven't seen anything since 6/30. We got a copy of a letter mailed to a sub which said they were delaying payment.

        Oh, and what about a cancellation rate of over 2/3s? Whew!

        Just curious, who on this board would buy a new home from Beez in one of their partially developed subdivisions?

    • Smith Barney Advisor: Beazer Cash Infusions: My advisor said yesterday that "Beazer is expecting some significant Cash infusions within the next 2 weeks"

      I don't know if you made this up or not, however in the event of the latter case you should know that Smith Barney is part of the CITIGROUP cabal that brought you Stephen Kim and his suicidally bullish calls on the housing stocks as well as their association with Legg Mason and that other scion of home builder indulgence Bill Miller. It sounds like your adviser, if he she or it is anything like the one my wife has with Smith Barney, is full of crap.

    • BK is what will happen

    • Here is a response for you. Stick that BS were the sun don't shine! By the way what happened did the management from Beazer all go out and buy lottery tickets? Or maybe the NAR is going to contribute the 6% commissions from all the houses they are not selling. Maybe a bunch of dumb asses like you will buy up all the overpriced shares available. You are pathetic! This company is going down plain and simple.

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