That was exactly one year ago......... Today it closed at $18.51, the stock needs to go up 21% to match last years price. At $18.51 PHM is over priced for 2014 and already well priced for 2015 earnings according to past history.
Some of the housing shortage is due to people unable to afford selling their home to move upward into better housing. Housing growth is suffering due to this part time job economy and pushing ObamaCare down everybody's throat causing healthcare costs to sky rocket. The housing market should be exploding with 4.5% mortgage.
In the conference call it was stated that the two companies had little overlap. So that means the savings in headcount reduction will not be as high to reduce expenses. Then, where are all the savings coming from?
They keep talking about being on plan, but fail to share the plan details....... Notice the analysts following the company have no clue or estimates.
Time is running out and the next recession will be here in 2015 or 2016.
NEW YORK, May 5 (Reuters) - Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, said on Monday that investors should bet against the SPDR S&P Homebuilders ETF because he does not see the expected rebound in single-family housing occurring.
Gundlach, speaking at the Sohn Investment Conference in New York, said that problems dogging the housing market include expected rises in mortgage rates and the amount of student loan debt carried by young adults, which makes saving for a down payment difficult.
He also said that if mortgage financiers Fannie Mae and Freddie Mac were wound down by the government, mortgage rates would rise.
Warren Buffett is considered the greatest investor in history, yet even he is confounded by the housing market.
Did the Housing Market Finally Receive Some Good News? Wall St. Cheat Sheet
Housing Recovery Slows, but Markets Charge Higher Motley Fool
U.S. pending home sales jump, end losing streak Reuters
U.S. home resales hit 1-1/2 year low, but may be stabilizing Reuters
Higher prices 'choke' housing CNBC
In a recent interview with CNBC's Becky Quick, Buffett said:
"Housing is not that strong yet. I'm surprised at that. But, it's better than it was a couple of years ago. The pickup in housing has been slower than I would have anticipated. And, I would say that's true right to this date. And it's true in the secondary market for houses. The prices have recovered some and all of that. But, if you look at transactions and pending transactions in March, it's not booming."
Morganlander calls household debt one anchor dragging home construction down. "Let’s face it, we’re still in an indebted market when it comes to household debt," Morganlander said. "Household debt reached about 100 percent of GDP in 2007 and now it’s currently 83 percent of GDP. … Back in ’97, [it] was 66 percent of GDP. So, we’re still seeing a little bit of a deleveraging from the household."
The other anchor holding back construction is the job market, according to Morganlander. Average hourly earnings in April were up 2.3 percent from the previous year but he doesn't think it's enough for housing. "And, you also need to start to see jobs growth really accelerate," said Morganlander. April's nonfarm payroll growth increase of 288,000 "is great to see but we really need to see a 350 handle per month on a quarterly basis," he said.
Last time I looked Obama is still the leader of this country........ What policies has he implemented to put this economy back on track. He did borrow $1-trillion from China on shovel ready jobs and pork projects.
Looks like somebody is afraid to face the facts about the state of this fragile economy. Time for you to take off the rose glasses and realize what's really going on grasshopper.
The headline rate tumbled as 806,000 people left the civilian labor force, a development one market strategist called "shocking." The labor force participation rate slumped to 62.8 percent, its worst of the year and near 35-year lows back to 1978 levels. Also, the average work week was unchanged at 34.5 hours, as were average hourly earnings at $24.31.
Million-dollar homes in the U.S. are selling at double their historical average while middle-class property demand stumbles, showing that the housing recovery is mirroring America’s wealth divide.
Purchases costing $1 million or more rose 7.8 percent in March from a year earlier, according to data released last week by the National Association of Realtors. Transactions for $250,000 or less, which represent almost two-thirds of the market, plunged 12 percent in the period as house hunters found few available homes in that price range.
Luxury-home sales are climbing as an improving economy and stocks that have almost tripled from 2009 lows bolster confidence among affluent buyers. At the same time, slow wage growth, tight credit standards and escalating prices are putting homeownership out of reach for many Americans. While investors drain the market of lower-end properties, builders are constructing more expensive houses that generate bigger profits.
Million-dollar-plus homes made up 2 percent of deals in February, about the same proportion as in 2008, before credit markets collapsed and drove down the share to the historical average of about 1 percent.
The mortgage market continues to deteriorate. Despite historically low interest rates, the mortgage composite index reached its worst level in over a decade. In the latest update from the Mortgage Bankers Association, for the week ended April 25, applications for home loans sank 5.9 percent on a seasonally adjusted basis from one week earlier. The index fell 5 percent on an unadjusted basis.
Housing affordability issues and a small rebound in interest rates have caused a steady slide in mortgage applications over the past year. As the chart above shows, applications are near their worst level in years. The Refinance Index plunged 7 percent from the previous week, while the Purchase Index declined 4 percent and remained 21 percent below year-ago levels on an unadjusted basis.
You can't buy houses on Obama's economy of part time jobs and the higher cost of Obamacare........ in 2009, 25% of people had zero equity and today that figure has climbed to 50%.
Your insurance will increase more than you realize over the next several years due to Obamacare.
It's no secret that the bulk of new jobs created since the Great Recession ended pay low wages, but the extent of the gap between low and high-paying jobs may surprise you.
The National Employment Law Project reports that that low wage industries employ 1.85 million MORE workers now than at the start of the recession while mid-and higher-wage industries employ 1.83 million
The stock price has already priced in 2015 earnings.
Grasshoper, the market didn't like it taking PHM down 1%. Contracts were way down compared to 2013.
I guess you were wrong about the stock rising soon, now you're talking about 2 years.
Poor grasshopper still has the blinders on.
You forgot to mention the burden of $1.3 trillion student loan debt..........
Looks like the cost of Obamacare and poor quality of job creation putting pressure on middle income workers to afford the American dream.
After all interest rates are extremely low at 4.5%.
This recovery is pathetic.............
PHM blames Q1 lower earnings on on paying taxes.............. really......
PulteGroup Quarterly Profit Falls as Tax Costs Increase -
the second-largest U.S. homebuilder by market value, said net income fell in the first quarter as new-home sales declined nationwide and the company incurred a higher tax expense.
I knew this would be one of their excuses as I posted back in Feb. 2.