QUOTE AND NEWS
Market Intelligence Center  May 19  Comment 
Pulte Homes Inc. (PHM) is a good candidate for a covered call at the $19.00 level. The Jan. '16 call at that price should fetch a credit of about $2.10, which means the entire position has a net debit of about $17.80. This trade has 8.54% downside...
Biomass Magazine  May 14  Comment 
On May 13, Metabolix Inc. released its first quarter financial results for the year, reporting a portfolio of opportunities the company is developing and commercializing for its PHA performance additives, pure PHA resins and PHA/PLA blends.
Market Intelligence Center  Apr 30  Comment 
MarketIntelligenceCenter.com's patented algorithms have selected a trade on Pulte Homes Inc. (PHM) that returns 35.14% in 260 days for an annualized return rate of 49%. This diagonal spread pairs a short position in the Jan. '16 $19.00 call, with...
Market Intelligence Center  Apr 28  Comment 
MarketIntelligenceCenter.com's patented algorithms have identified an attractive covered-call trade on Pulte Homes Inc. (PHM). Look at the Oct. '15 $19.00 covered call for a net debit in the $18.00 area. This trade has a duration of 171 days. The...
TheStreet.com  Apr 23  Comment 
NEW YORK (TheStreet) -- Shares of PulteGroup  fell 7.84% to $19.99 in morning trading Thursday after the homebuilder reported a 27% decline in its first-quarter profit as home sales declined. PulteGroup said it sold fewer homes due to...
Yahoo  Apr 23  Comment 
PulteGroup Inc. (PHM) on Thursday reported first-quarter profit of $55 million. On a per-share basis, the Atlanta-based company said it had profit of 15 cents. The results did not meet Wall Street expectations. ...
Biomass Magazine  Apr 9  Comment 
Bio-on S.p.A. and Pizzoli S.p.A have announced plans to collaborate to build Italy's first PHAs bioplastic production plant using waste product from the potato agro-industrial process.
TheStreet.com  Apr 9  Comment 
NEW YORK (TheStreet) -- Shares of PulteGroup are down by 2.40% to $21.93 in early afternoon trading on Thursday, after JPMorgan downgraded the homebuilder to "underweight" from "neutral" this morning. The firm believes that PulteGroup is...
Market Intelligence Center  Mar 31  Comment 
Pulte Homes Inc. (PHM) presents a trading opportunity that offers a 6.01% return in just 199 days. A covered call on Pulte Homes at the $21.00 level expiring on Oct. '15 offers an assigned return rate of 6.01% or 11.02% annualized. This trade...




 

Pulte Homes (PHM) (NYSE:PHM) is a homebuilder. In 2009, the company sold 15,013 homes across 27 states in all regions of the country.[1] Pulte targets first-time and move-up buyers, with most of its properties being single-family detached homes. At an average home selling price of $258,000, the company offers homes that are more expensive than the national median home price of around $210,000.[1]

The company operates in a highly cyclical industry. New home construction, home prices and new home sales volume are heavily dependent upon job growth, interest rates, and the business cycle at large. Low interest rates and high job growth bode well for homebuilding, but as the recent subprime lending crisis and depressed housing market has illustrated, things can sour quickly and the business can be difficult to predict. Key homebuilding numbers, such as housing starts and existing home sales have continued to come in weak of late. Homebuilding is highly competitive and marked by few barriers to entry, low profit margins, and high financial leverage.

Since early 2006, the U.S. housing market has been unfavorably impacted by a lack of consumer confidence, tightened mortgage standards, and large supplies of resale and new home inventories and related pricing pressures. These factors have contributed to weakened demand for new homes, slower sales, and increased price discounts and sales incentives to attract homebuyers. All of these contribute negatively to PHM's revenues and net income. This could not posisbly have been more helpful!

Competition

The company competes against a highly fragmented base of other homebuilders. These companies may be national or local players and given the highly competitive nature of the industry, competition is stiff and often marked by low margins and low returns on capital. The company also competes for buyers with existing homes that have hit the market, and competes more broadly with other housing alternatives such as apartments and mobile homes.

Some of PHM's top competitors include Lennar (LEN), D.R. Horton (DHI), Centex (CTX), KB Home (KBH), HOVNANIAN ENTERPRISES (HOV), Beazer Homes USA (BZH), and Ryland Group (RYL).

Footnotes

  1. ↑ 1.0 1.1 PHM 10-K 2009 Item 1 Pg. 4
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