Add a New Bulls Reason

Company: Toll Brothers (TOL)
Current price:
Headline: (100 character max)
1 votes

  Luxury home sector faces fewer risks than other areas

While the luxury home sector will face some contagion from the subprime mortgage crisis, the decrease in sales should be less than other areas of the housing sector.

(100 character max) Cancel
2 votes

  Toll brothers working towards improving despite travails

While the luxury home sector will face some contagion from the subprime mortgage crisis, the decrease in sales should be less than other areas of the housing sector. “In this difficult market, we continue to develop incentive strategies, when appropriate, on a community-by-community basis, which has enabled us to continue to generate pre-write-off profits,” Robert I. Toll, chief executive officer, said in a statement. “Although this strategy has resulted in slower sales, we believe it has helped sustain the reputation of our communities and value for our home buyers.”

Toll didn’t stop there. He bluntly went on to suggest ways the U.S. Government can quicken the housing market’s recovery - the key of which is removing the danger from existing homeowners who worry about selling their homes, and in turn, wait to buy a new one. “We believe Congress should jump-start demand for new homes with an initiative that will bring buyers off the sidelines and into the market, and thereby stop the downward spiral of home prices. As we have said before, we favor a tax incentive for all those who buy homes within nine months of the Bill’s passage; this would create a sense of urgency. Interest rates are low, supply is abundant and a buyer’s market prevails. With a little motivation, the new home market could turn around, which would have a very positive impact on banks, bond prices and many other areas of the economy. Once home prices stabilize, Congress could then more successfully address mortgage issues; however, without stabilization of home prices, trying to address mortgage issues may be difficult at best,” Toll said.

(100 character max) Cancel
0 votes

  Better insulated from the housing bubble than most other homebuilders

Toll Brothers is better insulated from the housing bubble than other homebuilders, given that it operates nationally.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki