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CHART OF THE DAY: House Prices Are Back To Late 2003 Levels
Joe Weisenthal | Apr. 30, 2013
Today's Case-Shiller housing report came in stronger than expected, with average home prices across 20 metropolitan areas rising 9.3% from last year. That's better than the 9% gain that had been expected.
But of course housing has a LONG way to go before it really recovers.
With the current reading, house prices are now just back to Autumn 2003 levels.
U.S. Home prices rise; annual growth at 6-yr high
April 30, 2013, 9:01 a.m. EDT
By Ruth Mantell
WASHINGTON (MarketWatch) -- Signaling continued housing-market momentum, the S&P/Case-Shiller 20-city composite index rose 0.3% in February and was up 9.3% from the same period in the prior year, which is the largest year-over-year growth since May 2006, according to data released Tuesday. February's monthly growth was the largest since August. On a seasonally adjusted basis, prices rose 1.2% in February. All 20 cities saw year-over-year gains in February, with faster growth in 16 cities. Phoenix posted the largest year-over-year price growth at 23%, while New York had the lowest at 1.9%. With ongoing low interest rates, increasing demand and constrained inventory have been supporting prices. However, despite recent gains, the 20-city composite index indicates that prices remain about 29% below a 2006 peak.
http://www.marketwatch.com/story/us-home-prices-up-yoy-growth-highest-since-2006-2013-04-30?reflink=MW_news_stmp
(NYSE:BZH) was upgraded from Neutral to Outperform at Credit Suisse today.
Credit Suisse Likes Pullback in Housing Names
Credit Suisse isn't as worried now about overheating in the homebuilding sector, upgrading MDC and Sheetrock maker USG to neutral while boosting Beazer (BZH) to outperform amid some recent stock weakness in construction firms. After topping out early this year at $31, USG is down more than 20%. But Credit Suisse, which raises its price target $5 to $27, says market checks point "to better pricing power" than the investment bank anticipated, with volume "remaining solid." As for BZH, its gains have majorly lagged peers, and its nearly 25% drop since late January has created "an attractive entry point." MDC has also underperformed, and the stock "now adequately reflects" margin concerns. They're all inactive premarket. (kevin.kingsbury@dowjones.com)
(END) Dow Jones Newswires
Source: DJ Broad Tape
Fitch: Spike in Starts a Sign That U.S. Housing is Now Thriving Endorsement Policy
18 Apr 2013 9:31 AM (EDT)
Link to Fitch Ratings' Report: U.S. Homebuilding/Construction: The Chalk Line
Fitch Ratings-New York-18 April 2013: Single family U.S. housing starts posted a solid March while multifamily results were spectacular, an encouraging sign that the housing market's moderate recovery may pick up in intensity in the coming months, according to Fitch Ratings in the latest edition of the 'Chalk Line'.
Single-family starts came in at 619,000 (down 4.8% compared to February) and up 28.7% year-over-year, largely in line with expectations. Total starts for March were 1.036 million, up 7% compared to February and 46.7% higher year-over-year. Total starts were significantly higher than expected because of the multifamily component. That said, multifamily numbers are often extremely volatile month-over-month and are coming off a somewhat disappointing February.
Nonetheless, total starts are up 36% so far this year, while single-family starts are 28.1% higher than this point in 2012. The spike in overall activity is good news for the public homebuilders, which gained market share last year and are poised to follow suit in 2013. What's more, still-attractive home prices, low mortgage rates and a rise in nominal incomes are resulting in superior affordability and valuations,' said Managing Director and lead homebuilding analyst Robert Curran.
That said, housing is still treading in unsteady waters for numerous reasons. 'Realized demand is and will continue to be tempered by widespread negative equity, challenging mortgage qualification standards, lot shortages, and excess supply due to foreclosures in certain markets,' said Curran.
Fitch will provide a brief recap of the fourth-quarter and year 2012 and comment on the outlook for 2013 during a teleconference to be held this Friday April 19 at 11:00 a.m. ET (separate press release to follow).
Fitch's latest 'U.S. Homebuilding: The Chalk Line - Quarterly Update: Spring 2013' includes the following key updates and new features:
--Homebuilders' quarterly growth trends and margin statistics for 4Q'12, excluding the impact of non-recurring, non-cash real estate charges, are provided as is information about the calendar fourth quarter and fiscal year 2012 option write-offs and land value write-downs;
--Liquidity analyses are updated and historical liquidity profiles are presented for perspective;
--Recovery ratings are detailed for six single B or lower rated homebuilding credits;
--A decreasing lot supply is referenced;
--Additional historical information about immigrant housing demand and related state and national household and home ownership projections are provided;
--Data for building trades employment since the last housing peak are noted;
--Updated Census Bureau population projections are detailed;
--2012 statistics for vacation home sales and investor purchases are referenced;
--Trends in homebuilder gross margins, excluding impairment and write-offs and before interest expense, are chronicled;
--Various foreclosure statistics and related data are updated and a summary of historical foreclosure filings is presented;
--There are also updated comments on HAMP, HARP, the appraisal process, AD&C financing, homeownership trends by age, Chinese drywall litigation, home pricing, Fannie Mae/Freddie Mac, FHA, the MBS market, underwriting standards and surveys about home ownership; and
--Fitch's economic and construction forecast for 2013 has been updated.
The report is available at 'www.fitchratings.com' under 'Latest Research' or by clicking on the above link.
Contact :
BZH to Webcast Its Second Quarter Fiscal 2013 Financial Results Conference Call on May 2, 2013
ATLANTA, Apr 18, 2013 (BUSINESS WIRE) -- Beazer Homes USA, Inc. (NYSE: BZH)
(www.beazer.com) has scheduled the release of its financial results for the
quarter ended March 31, 2013 on Thursday, May 2, 2013 before the open of the
market. The Company will hold a conference call on the same day at 10:00 AM ET
to discuss the results.
The public may listen to the conference call and view the Company's slide
presentation over the internet on the "Investor Relations" page of the Company's
website, www.beazer.com. In addition, the conference call will be available by
telephone at 800-619-8639 (for international callers, dial 312-470-7002). To be
admitted to the call, verbally supply the pass code "BZH". A replay of the
conference call will be available, until 11:00 PM ET on May 9, 2013, at
800-677-4960 (for international callers, dial 203-369-3932) with pass code
"3740."
Headquartered in Atlanta, Beazer Homes is one of the
country's 10 largest single-family homebuilders. The
Company's homes meet or exceed the benchmark for
energy-efficient home construction as established by ENERGY
STAR(R) and are designed with flexible floorplan options to meet
the personal preferences and lifestyles of its buyers. In addition, the Company
is committed to providing a range of preferred lender choices to facilitate
transparent competition between lenders and enhanced customer service. The
Company offers homes in 16 states, including Arizona, California, Delaware,
Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North
Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer
Homes is listed on the New York Stock Exchange under the ticker symbol
"BZH." For more info visit
Beazer.com, or check out Beazer on Facebook and Twitter.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130418006400r1&sid=cmtx4&distro=nx
SOURCE: Beazer Homes USA, Inc.
CONTACT:
Beazer Homes USA, Inc.
Carey Phelps, 770-829-3700
Director, Investor Relations & Corporate Communications
investor.relations@beazer.com
Copyright Business Wire 2013
-0-
KEYWORD: United States
North America
Georgia
INDUSTRY KEYWORD: Construction & Property
Residential Building & Real Estate
SUBJECT CODE: Advisory
Earnings
Conference Call
Webcast
Source: Comtext Market News
Statement of Ownership (sc 13g)
http://ih.advfn.com/p.php?pid=nmona&article=57129577&xref=newsalert
Upgrade Alert for Beazer Homes (BZH)
Apr 05, 2013 (SmarTrend(R) Upgrades/Downgrades via COMTEX) -- Beazer Homes
(NYSE:BZH) was upgraded from Underperform to Sector Perform at FBN Securities
today. The stock closed yesterday at $14.68 on volume of 625,000 shares, below
average daily volume of 1.1 million. Beazer Homes USA, Inc. designs, builds, and
sells single family homes in the Southeast, Southwest, and South Central regions
of the United States. The Company's homes are designed to appeal to entry-level
and first move-up home buyers.
Beazer Homes share prices have moved between a 52-week high of $20.15 and a
52-week low of $10.90 and closed yesterday at 35% above that low price at $14.68
per share. Over the last five market days, the 200-day moving average (MA) has
gone up 0.3% while the 50-day MA has declined 1.1%.
Potential upside of 14.4% exists for Beazer Homes, based on a current level of
$14.68 and analysts' average consensus price target of $16.80. The stock should
run into initial resistance at its 200-day moving average (MA) of $15.96 and
subsequent resistance at its 50-day MA of $16.66.
DJ Beazer Homes Raised to Sector Perform From Underperform by FBN Securities >BZH
(END) Dow Jones Newswires
April 04, 2013 09:48 ET (13:48 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- 04-04-13
Source: DJ Broad Tape
Beazer Homes and GSO Capital Partners Announce $150 Million Land Banking Arrangement
ATLANTA & NEW YORK--(BUSINESS WIRE)-- Beazer Homes USA, Inc. (the “Company”) (NYSE:BZH) and GSO Capital Partners LP ("GSO"), the credit arm of The Blackstone Group (NYSE:BX), announced today that GSO will make available up to $150 million as part of a land banking arrangement. Funds managed by GSO will acquire new land parcels identified by Beazer Homes and option finished lots on a pre-determined takedown schedule to the Company.
“I’m very pleased that GSO has agreed to make available to the Company additional capital to enhance our land acquisition and development activities,” said Allan Merrill, CEO of Beazer Homes. “Expanding our active community count beginning in fiscal 2014 is a key part of our path-to-profitability plan and will enable us to more fully participate in the strengthening housing market.”
Doug Ostrover, Senior Managing Director of Blackstone and Co-Founder of GSO, said, "As the housing recovery continues to gain momentum, we are excited to partner with Beazer and extend our land banking business. GSO has a long history of working with Beazer, and we have great confidence that the management team is positioning the company well in order to capitalize on the recovery and regain profitability. We look at this incremental capital as just the first step in what we hope to be many successful future ventures with Beazer.”
ABOUT BEAZER HOMES:
Headquartered in Atlanta, Beazer Homes is one of the country’s 10 largest single-family homebuilders. The Company’s homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with flexible floorplan options to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate transparent competition between lenders and enhanced customer service. The Company offers homes in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol “BZH.” For more info visit Beazer.com, or check out Beazer on Facebook and Twitter.
ABOUT GSO CAPITAL PARTNERS LP:
GSO Capital Partners LP is the global credit platform of The Blackstone Group L.P. (NYSE:BX). GSO, together with its affiliates, has approximately $55 billion of assets currently under management and is one of the largest credit-oriented alternative managers in the world and a major participant in the leveraged finance marketplace. GSO seeks to generate superior risk-adjusted returns in its credit business by investing in a broad array of strategies including mezzanine, distressed investing leveraged loans and other special situation strategies.
This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, (i) economic changes nationally or in local markets, including changes in consumer confidence, changes in the level of housing starts, declines in employment levels, inflation and changes in the demand and prices of new homes and resale homes in the market; (ii) a slower economic rebound than anticipated, coupled with persistently high unemployment and additional foreclosures; (iii) estimates related to homes to be delivered in the future (backlog) are imprecise as they are subject to various cancellation risks which cannot be fully controlled; (iv) a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing or a change in tax laws regarding the deductibility of mortgage interest; (v) factors affecting margins such as decreased land values underlying lot option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce production and overhead cost structure; (vi) our cost of and ability to access capital and otherwise meet our ongoing liquidity needs including the impact of any downgrades of our credit ratings or reductions in our tangible net worth or liquidity levels; (vii) our ability to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing; (viii) increased competition or delays in reacting to changing consumer preference in home design; (ix) shortages of or increased prices for labor, land or raw materials used in housing production; (x) additional asset impairment charges or writedowns; (xi) the cost and availability of insurance and surety bonds; (xii) delays in land development or home construction resulting from adverse weather conditions; (xiii) potential delays or increased costs in obtaining necessary permits and possible penalties for failure to comply with laws, regulations and governmental policies; (xiv) effects of changes in accounting policies, standards, guidelines or principles; or (xv) terrorist acts, acts of war and other factors over which the Company has little or no control. Under the terms of the land banking arrangement, GSO retains the right to approve the terms of each land parcel acquisition. Accordingly, there can be no assurance that all or any portion of the $150 million described herein will be funded.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time and it is not possible for management to predict all such factors.
Beazer Homes USA, Inc.
Carey Phelps, 770-829-3700
Director, Investor Relations & Corporate Communications
investor.relations@beazer.com
or
Blackstone
Peter Rose, 212-583-5871
Senior Managing Director, Global Public Affairs
Source: Beazer Homes USA, Inc. and GSO Capital Partners LP
Tuesday: New Home Sales, Case-Shiller
http://goo.gl/fb/DIxTa
D. R. Horton Inc. (DHI), Hovnanian Enterprises Inc. (HOV) and Beazer Homes USA Inc. (BZH), all carrying a Zacks Rank #2 (Buy).
(Not sure how this is particularly relevant, but here we go anyway.)
http://www.nasdaq.com/article/new-nvr-homes-in-tennessee-analyst-blog-cm227667#.UUNRlkb-BRo
6 Legitimate Reasons to Think Twice Before You Buy That House
Buyer’s remorse is no joke. It has killed many a home buying deal. But buying a home is serious, life-changing business, so some level of deliberation, concern and even rethinking the whole thing, before signing on the dotted line, is actually sensible and smart.
So it can be tough to know the difference between (a) the normal, unwarranted buyer’s remorse every home buyer should expect, think through and move past, and (b) the mental alarm bells that should be heeded because there is truly good reason to revisit whether this purchase is the right thing to do.
Home buyers, we’re here to help. If you’re suffering from a case of buyer’s remorse at any stage before your contingencies are removed, list out the things that come to mind when you fantasize about backing out of the deal. If your list contains any of the following items, express your concerns to your spouse or co-buyer and your agent. Then, consult with your mind and your heart about whether you’re ready to move forward - or not.
1. It’s too expensive. If you’re buying a house in 2013, it’s completely understandable to have a moment of panic at the sound of the price you’re paying or the sight of all those zeros. It’s a big purchase you’re making, possibly the biggest one you ever will, and those who enter into it with not even the slightest twinge of being nervous might not be taking it as seriously as they should.
That said, fears that a home are too expensive vis-a-vis the other recently sold homes in the neighborhood or the town’s market and future appreciation prospects in general are worth exploring and evaluating before you decide on your offer price or sign a final counter-offer. Your agent can help you understand the complex interacting factors you should consider, including the likelihood of the home to appraise at a given price point and the historical data on sales and home value trends in your area.
2. It’s too expensive for you. For years, I’ve heard buyers express concerns about being ‘house poor,’ meaning that they spend so much on their monthly mortgage payments that they are too broke to do much else. Unless you’re fortunate enough to live in one of those parts of the country in which it is less expensive to own than to rent a home, it’s almost inevitable that there will be some sort of lifestyle revision you’ll need to make post-homeownership.
Most people who have been renting for a long time will find themselves having to make some sacrifices after they buy, in terms of eating out less, going out less, splurging on vacations, clothes and other discretionary spending - this is just par for the course, sensible, and not a good reason not to buy.
On the other hand, there are occasions in which buyers are approved for mortgages beyond what they can truly afford and maintain financial integrity, in terms of still having enough money left over post-mortgage payment for saving, investing and other monthly budget line items that the mortgage banks don’t consider (e.g., children’s school tuition, medical expenses, etc.). If you have set yourself a home buying budget lower than your lender has set for you, get and stay clear on what the wiggle room is - if any. If you feel like you’re exceeding it or getting in a red zone with a particular property, heed those internal read flags.
3. The location is not quite right. I’d probably rank location choice right up there in the top 3 home selection regrets I hear after the fact from home owners. Clearly, the location you can live in is limited by your budget - you can’t expect to live in Beverly Hills on $100K. But I’m talking more about the various location choices and judgments every buyer has to make within their price range:
between a home in the city, near work, or a home in the quiet suburbs where you get much more space - and a much longer commute,
near shops and conveniences, or off the beaten path
next door to a school or at the end of a quiet cul-de-sac
in a row of townhomes with shared walls and an HOA or in an older neighborhood with lots of land between homes -
you get the gist.
Location compromises should be made carefully and consciously. If that electrical pole in the front yard really bothers you and you talk yourself out of that concern, ask yourself: are you going to end up hating to drive up to your house every night? The neighbors who seem to take a lot less care with their yards now might become a real thorn in your side over time. That extra 20 minutes of commute time might not be as minor a lifestyle change as you can talk yourself into believing - in fact, researchers have found that the longer commutes lower overall happiness, so don’t lengthen yours without serious consideration.
In particular, don’t dismiss noise and traffic concerns without giving it real thought - a friend of mine quickly moved his young family out of the home they’d bought in a new town when they realized that the street was so busy that it was nearly impossible to even pull in or out of their own driveway - much less to let the kids play outside.
4. You have qualms about the future of your job. I’ve known people who felt a need to fast forward their home buying plans when they get wind of changes coming down the pike at their companies. This happens a lot for buyers who have been house hunting for a long time and are concerned that a layoff would render them unable to qualify for their mortgage.
This is likely. And that’s unfortunate. But what’s more unfortunate is to proceed with buying a home, taking on a mortgage obligation and depleting your savings for the down payment, then having an interruption of income because you get laid off or - worse - being forced to sell quickly because of a job transfer out of the area. If you’re confident you can get work at another company or you have sufficient cushion to handle a temporary interruption in income, go for it. But if you have serious concerns about the short-term stability of your job, think long and hard before buying a home without a well thought-out financial plan in place.
5. You and your co-buyer are at odds. Whether or not your are legally married to your co-buyer, you will effectively be legally bound by your real estate and mortgage obligations if you buy a home together. If you are having intense, intractable conflicts about the sort of home to purchase, how much to spend, when to buy, where to buy or even whether to buy, think twice, thrice, pause and rethink once more before you sign on the dotted line.
Unless a deep, respectful compromise is reached that everyone feels good about, these conflicts can turn into long-term resentments and disrupt the relationship on a larger scale.
6. You think you’ll be okay - so long as you can sell at a profit or refi in the next 12 months. Are you a professional contractor or investor? A real estate professional who can buy and sell with very low costs? Do you have so much cash to burn that you could sell at a loss and not sweat it?
If your answer to these questions is no, you should not buy a home planning to refi or sell it in a super-short time frame. In fact, this was one of the ways people got into trouble at the top of the market during the last cycle - buying homes so pricey they couldn’t afford them after attractive short-term financing terms changed, on the assumption they’d be able to refinance before they ever had to truly pay the piper.
If the house you’re buying doesn’t seem likely to be able to work for your life and your family for at least 5 to 7 years, and you are pretty certain you’ll need to sell it sooner than that, consider:
(a) whether a different type of home might be a better, long-term choice, or
(b) whether it makes sense for you to buy a home at this stage of your life.
This time frame gives you a good bit of space to ride out shifts in the direction of the market, if you need to, minimizing the chances of living in a home that no longer meets your needs and being unable to sell it.
If you have fears on this list, and address them, you might decide to move forward anyway. But if you do, it’ll be with the calm, unpanicked assuredness of having faced your fears, articulated them and put an action plan in place for handling theses issues. And that’s a position of power from which you can feel good about moving forward with your home purchase, even if you once had qualms.
Beazer Homes Started at Buy by Sterne Agee >BZH
END) Dow Jones Newswires
March 13, 2013 16:11 ET (20:11 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 04 11 PM EDT 03-13-13
Source: DJ Broad Tape
Those Amazing Deals On Foreclosed Homes Are Disappearing
Mamta Badkar | Mar. 7, 2013, 7:09 PM
As housing supply continues to stay tight and home sales pick up, prices continue to rise.
There were 2.1 million homes on the market for sale in January, down 24 percent from a year ago. And though new and existing homes entering the market are up, the sales pace increased as well.
In a new report, Paul Diggle from Capital Economics writes that "ultra-low mortgage interest rates and steady, if not spectacular, job creation mean that the delinquency rate and foreclosure start rate are falling quickly."
He says this is causing the composition of inventory to shift, and points out that more homes are coming into the market as pre-foreclosure (short) sales.
This has caused the discount on foreclosed homes versus other homes to decline to an average of 12 percent, a level last seen before the housing crash. Last year the discount was a much deeper 30 percent.
Housing is in recovery,
but it's broken for retail. Now is not the time to buy assuming you could even get a loan.
If you were a bank, would you give out a 30 year fixed loan right now knowing full well
where rates must/will go?
I'm out of my home builder stock. If you must, get some Home Depot, appliance and
electronics stocks as your housing plays. They may continue to benefit for a short while.
Wed. recap, housing.
Morning economic data in the form of housing starts showed a sharp increase, but this was mainly attributed to an erratic month-to-month decline in multi-family housing starts. Housing starts declined 8.5% MoM to a seasonally adjusted annual rate of 890,000 in January from a revised higher 973,000 in December. Building permits, on the other hand, showed a nominal 1.8% MoM increase to a seasonally adjusted annual rate of 925,000 from 909,000 last month.
So it rally's AH?
I hate stocks.
Interesting home buying stories follows.
(The Phoenix market)
Kristena Hansen
Reporter- Phoenix Business Journal
Last week, I wrote the first of what will be many blogs documenting my ongoing experience hunting for my first home — and I must say, the response I got from readers was pretty overwhelming.
If you haven’t had a chance to read it yet, take a look here.
It’s pretty rare for a reporter, especially a business reporter, to bring their personal life into their professional one. We are, after all, held to a high ethical standard of presenting facts and all points of view in a fair, non-biased way, so I wasn’t sure how readers would respond.
Luckily, it was well received for the most part.
So until my next blog comes out (which will likely be about the lending process), I thought I’d offer some intriguing stories and advice that both consumers and real estate professionals have since shared with me.
Note: Some of the people below have requested that I not use their last name.
Stories
“My wife and I have been going through the same process for almost a year now. Our price range is somewhere between $180,000 to $300,000 and almost every home that comes on the market (in the past couple months) has at least five-plus offers the same day (and often times contain a cash offer) -- not to mention overpriced and still needing interior/exterior work. The investors are literally buying all of the homes at auction, which makes it a very difficult/frustrating process. The ones that do make the (Arizona Regional Multiple Listing Service) are all almost overpriced now and aren’t worth anywhere near what they are asking.” — Michael, Scottsdale
“While I purchased my home more than 10 years ago, some of the experiences you had are eerily similar to mine. I shopped the same market area, price range and style/age of home, and fell in love with several ‘remodeled’ homes that, with further investigation, revealed numerous flaws (E.G.: crushed AC duct work; no dishwasher; evap. unit removed and poorly transformed into a skylight; shed shoddily attached to the main house as a guest room; pink tile in bathrooms, etc.). Each inspection produced a three-page report of additional problems, which the owners (AKA investors) would not correct or lower the price. Seems like that point in the (real estate) cycle is back.” — Katherine, Phoenix
“We lived (in Arizona) 10 years ago and sold our home just as the market was on the upswing into the bubble (and we didn’t make much money off our sale because our buyer insisted we re-pipe the house at the time) ... Fast forward to 2012, and we decided we wanted to settle in Ahwatukee again .... however, we quickly learned that in order to secure a home comparable to what we were leaving in Austin, we were going to jump into the $150 per square foot range. Ouch! ... We ended up making three offers on three different homes. The first offer was on a home two streets up from where we ended up buying. The home was a single story, listed for $450,000. The kitchen had been updated and the floors redone, but that’s where the updates ended ... We offered $415,000. The seller’s agent never even bothered to respond (The house just closed last week for $440,000).
The second offer was on a home in Cabrillo Canyon ... the kitchen had granite, and a new cooktop and oven installed, but that was it. The rest of the house had not been updated since it was built in 1989. We didn’t want to go over $450,000, but we loved the house and offered $465,000 against a $495,000 list price. The time to respond came and went. When the seller’s agent finally responded to our agent, he claimed they got two CASH offers the same day for $485,000. (And when it finally closed, it did close for cash at that price.) I capitalized “cash” because the crazy investor-cash deals are happening at the higher price points, too.
The third home (the one we bought) had been mostly updated ... We ended up making an offer at $445,000 against a list price of $450,000. The sellers took our offer. However, upon inspection, they refused to fix anything. (We held them to the Seller Warranted Items portion of the contract in order to have the pool and spa fixed; the realtors kicked in for the roof repairs. None of the other items were fixed, so we will have to bring someone in to fix them.) The crazy thing is that even paying $445,000 for this house, we still have to replace kitchen appliances ... We will also have to update three bathrooms ... I share this saga in order for you to see the challenges at a different price point from where you’re shopping.” — Shannon, Ahwatukee
“I work for one of the “hedge funds/private equity” groups you speak of and your info is incorrect at best. This is what is being done with the single family homes. I don’t work for Beazer Homes nor (Kohlberg Kravis Roberts & Co.), but this is 100 percent accurate as we are doing the same thing. Fix and flips are for the small time guys looking to make a quick buck. (Private equity/hedge funds) look for the long kill.” — Anonymous
Advice
“I’d like to add an additional warning: The form purchase agreement used by Realtors in Arizona is heavily biased in favor of the seller (for example, if you default, the seller can opt not to keep your earnest money but can instead sue you for additional damages — a fact most realtors don’t even realize). I appreciate it is a competitive market for homes, and your Realtor will tell you that any changes to the “form” (which “everybody signs without objection”) will result in the seller rejecting your offer, but, I want to posit one question with you: The documents you sign (and that sellers sign) all recommend that the buyer/seller consult with an attorney before signing. Assuming there are 50,000 home sales a year (I am just pulling a number out of the air; it may be more or less), but that means that there are 100,000 parties per year buying/selling homes. How is it possible that no one uses a lawyer? My answer is that the realtors do what they can to dissuade their clients from using a lawyer.” Robert Nagle, attorney at Phoenix-based Nagle Law Group PC
“I hope you are not out there without having been pre-approved by a lender!” — Bill Parker, loan officer at Scottsdale-based GenCor Mortgage Inc.
“I actually think that the mortgage portion of buying a home is one of the most critical steps. Far too many times, buyers are not presented with various options because their loan officer does not listen or take the time to understand the buyer’s current position in life. Where is the borrower at in regards to their career? Job? Income? Family? Future plans? All of these answers help determine the type of loan that best fits their needs.” — Bill Rogers, president of Scottsdale-based Homeowners Financial Group
“Fix and Flip: Many times the average buyer cannot get a loan on a property that an investor can fix and flip. For example, lenders will not close a loan on a property if it is missing flooring or other items.
Square Footage: Check the square footage on the property with the county assessor. If it doesn’t match and it appears there may have been an addition to the property, there may have not been a permit pulled. If you suspect there was work done without a permit, local jurisdictions can tell you if a permit was pulled. Once you own the house, it’s yours and all of the potential fines that go along with not pulling a permit on work.
As-Is: Always have an inspection. Even if it is As-Is, you need to know what AS-IS is. The cost of the inspection will be worth it and will tell you if you should run! My inspector even has an infrared camera that can shoot ceilings without attics to determine if they are missing insulation.
Market Time: Sometimes a property will be on the market awhile due to loan restrictions. You see this quite a bit in the fix and flips. Most lenders will not lend on a property if the current seller has not owned it for 45-90 days, which eliminates some of the market. Another reason is that some of the (lender-owned) properties have owner-occupied offers only in the first week or two.
Sellers: Always be nice to the sellers if they are in the home when you are looking. This can sometimes make the difference on whether you get the house if you’re bidding against someone else. People want to sell to people they like.” — Janae Jaynes-Learned, designated broker at Scottsdale-based Brokers for Charity.
Kristena Hansen covers residential and commercial real estate.
Beazer Homes Earnings Review: 14 Days after Announcement Shares Down 7.5%
When Beazer Homes reported earnings 14 days ago on January 28th, 2013, analysts, on
average, expected the company to report a loss of $0.94 on sales of $259.3
million. The company actually reported a loss of $0.77 per share on sales of
$246.9 million, beating EPS estimates by $0.17 and missing revenue estimates by
$12.3 million. Since the company's report, shares of Beazer Homes have fallen
from $18.18 to $16.82, representing a loss of 7.5% in the past 14 days.
In the past 52 weeks, shares of Beazer Homes have traded between a low of $10.90
and a high of $20.15 and are now at $16.82, which is 54% above that low price.
Over the past week, the 200-day moving average (MA) has gone up 0.5% while the
50-day MA has advanced 1.4%.
US homebuilders are turning to the high-yield market in droves, taking advantage of earnings strength and improved housing data to achieve favorable rates to fund new construction.
Lennar Corp, D.R. Horton, Beazer Homes, Weekley Homes and Ashton Woods USA have all come with bond offerings this week.
On Wednesday, Lennar, the third-biggest US homebuilder, raised US$450m (decreased from US$500m) in six-year notes and an add-on to its 4.75% notes due 2022.
Lennar had reported better-than-expected fourth-quarter earnings in early January with management stating that low mortgage rates, affordable home prices, reduced foreclosures and a favorable "rent versus own" comparison continue to drive the US housing recovery.
D.R. Horton, the largest homebuilder in the US, priced a US$700m two-part offering of five-year and 10-year notes also on Wednesday. Investors, spooked by higher Treasury yields, showed preference for the shorter five-year paper.
A day earlier, D.R. Horton unveiled net income of US$66.3m for the quarter, up from US$27.7m a year earlier.
Positive housing data has also buoyed the new financings. The S&P/Case-Shiller Home Price indices showed home prices rose 4.5% for the 10-year City Composite and 5.5% for the 20-City Composite in the 12 months ending November 2012.
"Housing is clearly recovering," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
Prices have risen along with new and existing home sales. Existing home sales totaled five million in November, the highest since Nov 2009. New homes sales at 398,000 were the highest since June 2010.
"These figures confirm that housing is contributing to economic growth," said Blitzer.
TIMING IT RIGHT
Lennar's and D.R. Horton's deals came after Weekley Homes and Beazer Homes priced deals earlier in the week. The timing for Beazer and Weekley was better as they priced ahead of Wednesday's softer high-yield market. But they were also viewed as more attractive because of their higher, less interest-rate sensitive coupons.
Beazer Homes sold a US$200m 10-year non-call five senior notes offering through Credit Suisse sole books. The Caa2/CCC rated issue priced at 7.25% at par, in line with talk. While the company reported a loss in its fiscal first quarter earnings due to a larger income tax benefit, it saw strong gains in home orders and completed sales.
Allan Merrill, president and CEO of Beazer, said challenges still remain before the industry can achieve a full turnaround.
But "improvements in consumer confidence coupled with low mortgage rates and enhanced clarity regarding mortgage qualification procedures should provide support for both increased demand for new homes and improved new home pricing during the balance of the year."
On Monday, first-time issuer Weekley Homes raised US$200m in a 10-year non-call four senior notes offering, through Credit Suisse, BofA Merrill, Wells Fargo and Zelman & Associates. The B2/BB- rated notes priced at 6% at par, on the tight end of guidance.
Finally, Ashton Woods USA is expected with a new US$250m eight-year non-call four senior unsecured notes offering (Caa1/B-) through JP Morgan and Wells Fargo joint books. Pricing is expected tomorrow, with proceeds being used for general corporate purposes. Those notes are talked at 7%-7.25%.
http://www.reuters.com/article/2013/01/31/markets-credit-idUSL1N0B0F1620130131?feedType=RSS&feedName=bondsNews&rpc=43
BZH Q1 results ended December 2012
Monday , January 28, 2013 16:04ET
QUARTER RESULTS
Beazer Homes USA, Inc. (BZH) reported Q1 results ended December 2012. Q1 Revenues were $246.90M; +30.95% vs yr-ago; MISSING revenue consensus by -4.94%. Q1 EPS was (84c); -2,200.00% vs yr-ago; BEATING earnings consensus by +16.00%.
Q1 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $246.90M $188.55M +30.95% $259.74M -4.94%
---------- ------------ ------------ ---------- ------------ ----------
EPS: (84c) 4c -2,200.00% ($1.00) +16.00%
---------- ------------ ------------ ---------- ------------ ----------
Fitch Rates Beazer's Proposed $200MM Sr. Notes Offering 'CCC+/RR5'
Feb 01, 2013 (Close-Up Media via COMTEX) -- Fitch Ratings has assigned a
'CCC+/RR5' rating to Beazer Homes USA, Inc.'s proposed offering of $200 million
principal amount of senior notes due 2023.
This notes issue will be ranked on a pari passu basis with the company's
existing senior unsecured notes. Net proceeds from the notes offering will be
used to fund or replenish cash that is expected to be used to fund the
redemption of its 6 7/8 percent senior notes due 2015 and for general corporate
purposes.
The Rating Outlook is Stable. A complete list of ratings follows below.
SENSITIVITY/RATING DRIVERS
The rating for BZH is based on the company's execution of its business model in
the current moderately recovering housing environment, land policies, and
geographic diversity. BZH's rating is also supported by the company's solid
liquidity position.
Risk factors include the cyclical nature of the homebuilding industry, the
company's high debt load and high leverage, BZH's underperformance relative to
its peers in certain operational and financial categories, and its current
over-exposure to the credit-challenged entry level market (approximately 60
percent of BZH's customers are first-time home buyers).
The Stable Outlook takes into account the improving housing outlook for 2013.
However, the industry growth rate this year reflects a below-trend-line cyclical
rise off a very low bottom. In a slowly growing economy with somewhat diminished
distressed home sales competition, less competitive rental cost alternatives,
and new and existing home inventories at historically low levels, 2013
single-family housing starts should improve about 18 percent, while new home
sales increase approximately 22 percent and existing home sales grow 7 percent.
However, as Fitch has noted in the past, recovery will likely occur in fits and
starts.
Challenges (although somewhat muted) remain, including continued relatively high
levels of delinquencies, potential of short-term acceleration in foreclosures,
and consequent meaningful distressed sales, and restrictive credit qualification
standards.
IMPROVING FINANCIAL RESULTS
BZH's homebuilding revenues for its 2013 fiscal first quarter (ended Dec. 31,)
increased 30.8 percent to $244.4 million as home deliveries grew 19.7 percent to
1,038 homes and the average selling price advanced 9.3 percent to $235,500. The
company has also reported improved quarterly net sales in each of the last seven
quarters, contributing to a 39 percent increase in homes in backlog at Dec. 31,
compared with year ago levels. The significant increase in backlog, combined
with the company's strategy to grow community count, should result in moderately
higher deliveries in fiscal 2013 compared with 2012. Nevertheless, Fitch does
not expect BZH to be profitable in fiscal 2013.
LIQUIDITY POSITION
The company has taken steps to strengthen its balance sheet and improve its
liquidity position to better participate in the housing recovery. In July 2012,
BZH completed underwritten public offerings of its common stock, tangible equity
units and a private placement of $300 million of 6.625 percent senior secured
notes. Net proceeds from these transactions were roughly $466 million.
Concurrently with the debt offering, BZH called for redemption of all of its
$250 million 12 percent senior secured notes due 2017 and repaid $20 million
under its outstanding cash secured term loan. These transactions are projected
to lower annual interest expense by approximately $15 million.
In September 2012, BZH also amended and expanded its secured revolving credit
facility from $22 million to $150 million. The credit facility matures in
September 2015.
BZH ended the December 2012 quarter with $396.7 million of unrestricted cash and
no borrowings under its revolving credit facility. The improved liquidity
position provides BZH with some cushion as Fitch expects the company will
continue to have operating losses and negative cash flow through fiscal 2013.
With higher land and development spending expected this year, unrestricted cash
could fall below $300 million by the end of fiscal 2013.
LAND POSITION
At Dec. 31, the company controlled 25,104 lots, of which 82 percent were owned
and the remaining lots controlled through options. Based on the latest 12-month
closings, BZH controlled 5.3 years of land and owned roughly 4.3 years of land.
BZH spent roughly $185.5 million on land and development during fiscal 2012
compared with $221.6 million during fiscal 2011. During its 2013 fiscal first
quarter, land and development spending totaled $90 million. This compares to
$58.2 million expended during the same period last year. Management expects to
spend at least twice as much on land and development during 2013 as it did
during 2012. Fitch is comfortable with this strategy given the company's
enhanced liquidity position. Assuming that the company is able to redeem all of
its 2015 notes, BZH will not have any major debt maturities until 2016, when
$172.9 million of senior notes become due. Furthermore, management has
demonstrated in the past that it is capable of pulling back on land and
development spending when necessary.
GUIDELINES FOR FURTHER RATINGS ACTIONS
Future ratings and Outlooks will be influenced by broad housing market trends as
well as company specific activity, such as trends in land and development
spending, general inventory levels, speculative inventory activity (including
the impact of high cancellation rates on such activity), gross and net new order
activity, debt levels, especially free cash flow trends and uses, and the
company's cash position.
BZH's ratings are constrained in the intermediate term due to weak credit
metrics and high leverage. However, positive rating actions may be considered if
the recovery in housing is maintained and is meaningfully better than Fitch's
current outlook, BZH shows continuous improvement in credit metrics
(particularly debt to EBITDA consistently below 8x and interest coverage above
2x), and preserves a healthy liquidity position.
Negative rating actions could occur if the recovery in housing dissipates,
resulting in revenues and operating losses approaching 2011 levels, and the
company maintains an overly aggressive land and development spending program.
This could lead to consistent and significant negative quarterly cash flow from
operations and diminished liquidity position. In particular, Fitch will review
BZH's ratings if the company's liquidity position (unrestricted cash plus
revolver availability) falls below $200 million.
Fitch currently rates BZH as follows:
--Long-term Issuer Default Rating 'B-';
--Secured revolver 'BB-/RR1';
--Second lien secured notes 'BB-/RR1';
--Senior unsecured notes 'CCC+/RR5';
--Junior subordinated debt 'CCC/RR6'.
The Rating Outlook is Stable.
The Recovery Rating (RR) of 'RR1' on BZH's secured credit revolving credit
facility and second-lien secured notes indicates outstanding recovery prospects
for holders of these debt issues. The 'RR5' on BZH's senior unsecured notes
indicates below-average recovery prospects for holders of these debt issues.
BZH's exposure to claims made pursuant to performance bonds and joint venture
debt and the possibility that part of these contingent liabilities would have a
claim against the company's assets were considered in determining the recovery
for the unsecured debtholders. The 'RR6' on the company's mandatory convertible
subordinated notes and junior subordinated notes indicates poor recovery
prospects for holders of these debt issues in a default scenario. Fitch applied
a liquidation value analysis for these recovery ratings.
Additional information is available at 'fitchratings.com'. The ratings above
were unsolicited and have been provided by Fitch as a service to investors.
Applicable Criteria and Related Research:
--'Corporate Rating Methodology' (Aug. 8,);
--'Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers'
(Aug. 14,).
Applicable Criteria and Related Research:
Corporate Rating Methodology
http://fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460
Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers
http://fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693773
((Comments on this story may be sent to newsdesk@closeupmedia.com))
Copyright Close-Up Media, Inc. 2013. All Rights reserved
-0-
INDUSTRY KEYWORD: Manufacturing_Close-up
Source: Comtex Wall Street News
Current Report Filing (8-k)
Date : 01/29/2013 @ 4:02PM
Source : Edgar (US Regulatory)
Stock : Beazer Homes Usa, Inc. (BZH)
Quote : 19.2 1.02 (5.61%) @ 7:49PM
Current Report Filing (8-k)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
_______________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest reported event): January 29, 2013
BEAZER HOMES USA, INC.
(Exact name of registrant as specified in its charter)
_______________
DELAWARE
001-12822
54-2086934
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1000 Abernathy Road, Suite 260
Atlanta Georgia 30328
(Address of Principal Executive Offices)
(770) 829-3700
(Registrant’s telephone number, including area code)
None
(Former name or former address, if changed since last report)
Beazer Homes Announces Pricing of Offering of $200 Million Senior Notes
Date : 01/29/2013 @ 4:01PM
Source : Business Wire
Stock : Beazer Homes Usa, Inc. (BZH)
Quote : 19.2 1.02 (5.61%) @ 7:49PM
Beazer Homes USA, Inc. (NYSE: BZH) (the “Company”) today priced its previously-announced offering of $200 million aggregate principal amount of 7.25% Senior Notes due 2023 (the “Notes”) at par. The Notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”).
The Company is offering the Notes within the United States to qualified institutional buyers in accordance with Rule 144A and outside the United States in accordance with Regulation S under the Securities Act. The Company intends to use the net proceeds from the offering to fund or replenish cash that is expected to be used to fund the redemption of its 6?% senior notes due 2015 and for general corporate purposes.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The offer and sale of the Notes will not be registered under the Securities Act or applicable state securities laws, and are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act. Unless so registered, the Notes cannot be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
About Beazer Homes USA, Inc.
Headquartered in Atlanta, Beazer Homes is one of the country's ten largest single-family homebuilders. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with flexible floorplan options to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate transparent competition between lenders and enhanced customer service. The Company offers homes in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol “BZH.”
Beazer Homes USA, Inc. Reschedules Its First Quarter Fiscal 2013 Financial Results Conference Call
Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) has rescheduled its conference call and webcast to discuss the financial results for the quarter ended December 31, 2012 to Thursday, January 31, 2013 at 9:30 AM ET.
This call will replace the previously announced call originally scheduled for February 4, 2013.
The public may listen to the conference call and view the Company's slide presentation over the internet on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the pass code "BZH". A replay of the conference call will be available, until 9:30 PM ET on February 7, 2013, at 866-429-0570 (for international callers, dial 203-369-0912) with pass code “3740.”
BZH back to pre-split levels
with the recovery indicating a continuing rise.
Honestly, with my impatience, I would not still be here.
I don't know. I stopped following it a bit ago.
Here's a finviz link for news. They will have the earnings report.
Maybe you can find something there?
Good luck!
http://finviz.com/quote.ashx?t=bzh&ty=c&ta=1&p=d
Hi there you guys think they're going to hit or miss this quarter?
You guys think they're going to hit or miss this quarter?
CEO Gaffe of the Week: Beazer Homes
This year, I introduced a weekly series called "CEO Gaffe of the Week." Having come across more than a handful of questionable executive decisions last year when compiling my list of the worst CEOs of 2011, I thought it could be a learning experience for all of us if I pointed out apparent gaffes as they occur. Trusting your investments begins with trusting the leadership at the top -- and with leaders like these on your side, sometimes you don't need enemies!
This week, we're going to take a look at homebuilder Beazer Homes (NYSE: BZH ) and put its CEO, Allan Merrill, on the hot seat.
The dunce cap
This has truly been a remarkable year for many homebuilders as a long awaited bottom in the housing market appears to have finally come to fruition. According to the latest housing data in November, housing permits are tracking along at a healthy annual pace of 861,000, home prices are slowly rebounding, and homebuilder sentiment is at a six-and-a-half-year high.
Not surprisingly we've seen double-digit order jumps from all facets of builders -- from luxury to entry-level. On the high-end, KB Home (NYSE: KBH ) eked out a net delivery rise of 6% but was boosted most by a 14% jump in home sale prices. The model of consistency, Lennar (NYSE: LEN ) reported a 210 basis-point improvement in its sector-leading homebuilding margin. Even previous troubled entry level builders that struggled, like Standard Pacific (NYSE: SPF ) and Hovnanian (NYSE: HOV ) , have even shocked Wall Street with their turnarounds. Hovnanian recently reported a pre-tax quarterly profit -- it's first since 2006 -- while Standard Pacific has returned to consistent profitability and recorded a 29% increase in net new orders in the third-quarter.
And then we have Beazer Homes. Since 2006 Beazer hasn't turned an annual profit, has seen its annual revenue decline by more than 80%, and has seen book value dip by 95%. Furthermore, over the past two years shareholders have witnessed the company burn cash as it's nearly doubled it share base to raise cash.
Now, here's where things really get interesting. In mid-November, Beazer reported its fiscal 2012 results that highlighted a 25% increase in new orders and a 90 basis-point improvement in its homebuilding margin, but still managed to lose $135.6 million for the year . Despite this loss, it was noted in a recent filing with the Securities and Exchange Commission that Allan Merrill is up for a 67% increase in pay this year to $2.94 million. That's right -- 67% for a $135.6 million loss.
To the corner, Mr. Merrill
But wait -- there's more!
It's not just that Merrill is due for just any pay raise. According to the regulatory filing:
During fiscal year 2012, the company delivered significantly improved operating results, meeting or exceeding virtually all of the operational goals it set out to achieve at the beginning of the year.
That's right... losing only $135.6 million completely exceeding the threshold Beazer's management set for itself and Merrill is therefore "deserving" of a 67% boost in pay. In addition to Merrill, Beazer's chief financial officer, Robert Salomon, has a proposed 95% pay raise on the table.
Thankfully shareholders have a say-on-pay vote and I can't, on this planet or any other, see why they wouldn't vote this down with every fiber of their being. It'd be one thing if Beazer were profitable, or even cash-flow positive, but the company isn't! Beazer is in the second inning of a nine-inning recovery, and it'll be lucky to get back into the black by 2015 at the pace it's going.
This is another ridiculous attempt at an executive board to line their pockets at a truly inappropriate time, and I wag my finger in disdain at Mr. Merrill and the Beazer Homes board.
Do you have a CEO you'd like to nominate for this dubious honor? Shoot me an email and a one- or two-sentence description of why your choice deserves next week's nomination, and you just may see your suggestion in the spotlight.
Beazer Proposes CEO Pay Raise to $2.94 Million
By John Gittelsohn - Dec 12, 2012 2:31 PM MT.
http://www.bloomberg.com/news/2012-12-06/beazer-proposes-67-ceo-pay-raise-after-145-million-loss.html?cmpid=yhoo
(Corrects story published Dec. 5 to show the executives held office for three months in the 2011 fiscal year.)
Compensation for the chief executive officer of Beazer Homes USA Inc. (BZH) would rise 67 percent under a proposal by the company’s board.
Allan Merrill, 46, the Atlanta-based homebuilder’s president and CEO, would receive pay of $2.94 million for the fiscal year ended Sept. 30, according to a proxy statement filed today with the U.S. Securities and Exchange Commission. That’s up from total compensation of $1.76 million in fiscal 2011, when he was in the CEO position for about three and a half months. The company reported a $145.3 million loss for fiscal 2012, compared with $204.9 million a year earlier. It has had losses each year since 2007, totaling $2.08 billion.
“During fiscal year 2012, the company delivered significantly improved operating results, meeting or exceeding virtually all of the operational goals it set out to achieve at the beginning of the year,” according to a discussion of executive compensation included in the filing.
Homebuilders are recovering from a six-year slump amid record low interest rates, rising consumer confidence and a shrinking pool of existing homes listed for sale. Beazer’s orders increased 25 percent to 4,901 homes in fiscal 2012, sales rose 36 percent to 4,428 houses and homebuilding revenue climbed 40 percent to $996.1 million, the company said Nov. 12.
U.S. construction spending in October increased 1.4 percent from the previous month to $872.1 billion, and spending on new- home construction rose 3 percent to $294.2 billion, its highest level since November 2008, the Commerce Department reported this week. U.S. home prices jumped 6.3 percent in October from a year earlier, the biggest increase since June 2006, data provider CoreLogic Inc. said yesterday.
CFO Increase
Beazer’s board proposed raising the compensation for Chief Financial Officer Robert Salomon 95 percent to $1.32 million, and 26 percent to $1.32 million for Kenneth Khoury, the company’s general counsel and chief administrative officer. Salomon took office when Merrill became CEO in June 2011, while Khoury assumed the added role of chief administrative officer.
Carey Phelps, a Beazer spokeswoman, didn’t immediately respond to a telephone message and e-mail seeking comment.
Beazer shareholders get to participate in a non-binding “Say on Pay” vote when the company holds its annual meeting in Atlanta on Feb. 1. The last compensation package won 95 percent of the vote after a majority of shareholders voted against a proposal in 2011, according to the filing.
Merrill succeeded Ian McCarthy, who was replaced after an accounting scandal spurred an SEC investigation that led McCarthy to return $6.5 million in compensation. Merrill joined Beazer in 2007 as CFO.
Chalk up another down side R.S. This made #7 for me but this time I got out right away. Sure am glad I did.....
BZH: Q4 EPS ($2.82) vs ($2.91) Misses ($1.67) Est
Monday , November 12, 2012 07:56ET
http://www.knobias.com/story.htm?eid=3.1.671b17bd2488f3cb3a1dbd36c1116156af275088c7a9f1cd0989d8357403a029
QUARTER RESULTS
Beazer Homes USA, Inc. (BZH) reported Q4 results ended September 2012. Q4 Revenues were $370.93M; +10.76% vs yr-ago; BEATING revenue consensus by +10.69%. Q4 EPS was ($2.82); +3.09% vs yr-ago; MISSING earnings consensus by -68.86%.
Q4 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $370.93M $334.91M +10.76% $335.11M +10.69%
---------- ------------ ------------ ---------- ------------ ----------
EPS: ($2.82) ($2.91) +3.09% ($1.67) -68.86%
---------- ------------ ------------ ---------- ------------ ----------
FY RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $4,005.68M $742.41M +439.55% $969.27M +313.27%
---------- ------------ ------------ ---------- ------------ ----------
EPS: ($7.87) ($13.85) +43.18% ($5.57) -41.29%
---------- ------------ ------------ ---------- ------------ ----------
BZH 4Q earnings 11-12-12 BMO
Beazer Homes USA, Inc. to Webcast Its Fourth Quarter Fiscal 2012 Financial Results Conference Call on November 12, 2012
Monday , October 29, 2012 06:30ET
ATLANTA--(BUSINESS WIRE)-- Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) has scheduled the release of its financial results for the quarter and fiscal year ended September 30, 2012 on Monday, November 12, 2012 before the open of the market. The Company will hold a conference call on the same day at 11:00 AM ET to discuss the results.
The public may listen to the conference call and view the Company's slide presentation over the internet on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the pass code "BZH". A replay of the conference call will be available until 11:00 PM ET on November 19, 2012, at 866-495-9351 (for international callers, dial 203-369-1779) with pass code "3740."
Beazer Homes USA Inc., headquartered in Atlanta, Georgia, is one of the ten largest single-family homebuilders in the United States. The Company's industry-leading high performance homes are designed to lower the total cost of home ownership while reducing energy and water consumption. With award-winning floor-plans, the Company offers homes that incorporate exceptional value and quality to consumers in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. Beazer Homes is listed on the New York Stock Exchange and trades under the ticker symbol "BZH." For more information, please visit Beazer.com, or check out Beazer on Facebook and Twitter.
Had a sell order in for half my BZH stock at 18.40 and it sold while I was out. Now I can get into HOV and play two differant parts of the country at the same time.
HOV has a gap @3.80 and I'm awaitin'.
I'm looking at RDN for a cheaper play.
Don't know what to make of this split yet. Is it going up on it's own because of more interest? or is it just going up cause all the other home builders are going up?
Beazer Homes USA Larger Than S&P 500 Component Advanced Micro Devices
DividendChannel.com
In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Beazer Homes USA, Inc. (NYSE: BZH) was identified as having a larger market cap than the smaller end of the S&P 500, for example Advanced Micro Devices, Inc. (NYSE: AMD), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating »
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company’s stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true “apples-to-apples” comparison of the value of two stocks. In the case of Beazer Homes USA, Inc. (NYSE: BZH), the market cap is now $2.08B, versus Advanced Micro Devices, Inc. (NYSE: AMD) at $1.94B.
Click here to find out The 20 Largest U.S. Companies By Market Capitalization »
Below is a three month price history chart comparing the stock performance of BZH vs. AMD:
BZH,AMD Relative Performance Chart
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV’s). This can have a direct impact on which indices will include the stock, and which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and “tosses out” the biggest 100 companies so as to focus solely on the 400 smaller “up-and-comers” (which in the right environment can outperform their larger rivals). And ETFs that directly follow an index like the S&P 500 will only own the underlying component of that index, selling companies that lose their status as an S&P 500 company, and buying companies when they are added to the index. So a company’s market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these looks at comparative market capitalization daily.
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According to the ETF Finder at ETF Channel, BZH and AMD collectively make up 2.43% of the Dynamic Semiconductors Portfolio ETF (PSI) which is lower by about 1.1% on the day Friday.
See what other ETFs contain both BZH and AMD »
See what other stocks are held by PSI »
At the closing bell, BZH is down about 4.2%, while AMD is down about 14.4% on the day Friday.
I used to play options until I caught on that they were specifically designed to TAKE MY MONEY! Either the time curve gets ya or they drive a semi truck between the bid and ask so you can't sell at a decent price. Nice little game they got goin' there.
I usually don't either,
mainly because I'm not a mega player
like some others here. You ever play
options? I can't seem to get any
quotes now off of ST. Something to
do with the split I'm guessing?
Exactly. China does not give a shit. You can bet on it.
Forget Greece, watch China.
Curious timing because of the election. The DOW's up 6 friggin' thousand points! RE is prime for a buy! Joe Sixpack has more to spend! Taxes are lowest in 50 years! Auto sales are up! Airline seats are packed! Amusement parks too! I go downtown and see packed restaurants almost every night! There's spin and there's REALITY.
Last comment:
does it concern, worry or make you wonder about these guys
like Dimond et al coming out in the last few days talking about the "fiscal cliff"? It's gotten to be nearly a roar, seems to me.
Curious timing, eh?
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FROM SEA TO SHINNING SEA
EXECUTIVES and DIRECTORS
Name Age Since Current Position
Allan P. Merrill President, Chief Executive Officer, Director
Robert L. Salomon Chief Financial Officer, Executive Vice President, Chief Accounting Officer
Kenneth F. Khoury Chief Administrative Officer, Executive Vice President, General Counsel
Nick Peacock Vice President - Lender Relations
Brian Cyril Beazer Non-Executive Independent Chairman of Board
Laurent Alpert Lead Independent Director
Elizabeth S. Acton Director
Peter G. Leemputte Independent Director
Norma A. Provencio Independent Director
Beazer Homes USA, Inc., designs homes at various price points to appeal to homebuyers across various demographic segments. The Company's product offering is broken down into three product categories: Economy, Value and Style. Economy class homes are targeted primarily at entry-level buyers, are generally 1,500 square feet or less in size and are intended to meet the needs of those buyers for whom price is the most important factor in the buying decision. Value category homes are targeted at entry-level and move-up buyers, generally range from 1,500 to 2,500 square feet in size and are intended to appeal to buyers who are more interested in style and features, but are still somewhat price-focused. Style class homes are targeted at more affluent move-up buyers, are generally greater than 2,500 square feet in size and are intended to appeal to buyers in the more luxurious segment of the market, who place greater emphasis on style and features
BZH Home Page
Beazer Homes Code of Conduct
1000 Abernathy Road, Suite 1200
Atlanta, GA 30328
Phone: (770) 829-3700
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