Quote:
Originally Posted by smoothcriminal99
Credit default swaps.
Seriously though nothing can really help them. Inventories are massive for all builders and housing demand really hasnt rebounded as much you would expect since the crash. Everyone’s is expecting massively markdowns in their assets hence they’re all selling under book and the ones with high inventories/working capital are insanely cheap like century.
That being said they continue to be incredibly profitable and seem to be proving everyone’s wrong revenue/earning wise.
Yeah I'm not seeing the impending need to markdown their land holdings/inventory based on earnings and/or sales. At least not to the extent the market is pricing.
But my greater point is how can home builders hedge in a predictably cyclical market? The publics lay off something like ~40% of their workforce during downturns. There must be a way to flatten out earnings, right?