Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Toll Brothers cuts 2006 forecast

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November 08, 2005

Toll Brothers cuts 2006 forecast

I hate being the bearer of bad news, and I never like to say "I told you so", but Toll Brothers just announced that they won't meet the company 2006 goals due to "fewer than expected selling communities and weakened demand in several markets."

The question that begged to be asked is, do those people forget the simple supply and demand formula? Do they think that they can build indefinitely and people will continue to buy? Almost every one whom I know is either buying rental properties or, better yet, has become a general contractor. And few are into condo conversion.

I wrote on October 11th about quite massive insider selling in home building companies. The insiders were dumping stocks with alarming consistency over a rather prolonged period of time. Toll Brothers was the featured company, by the way.

The rest of home building stocks has followed, but as you can see, they still have a long way to go, and that is down.

Depressing ..., I will try to focus on more positive news ...

Posted in Real Estate at November 8, 2005 12:34 PM

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