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Lawsuit claims D.R. Horton homes can’t withstand Louisiana humidity; Alabama case alleges ‘critical mistakes’ (3/12/22)
By Megan Wyatt | The Advocate, Baton Rouge, La.
Alicia and West Dixon purchased their first newly constructed home from D.R. Horton in 2014 because it was in the school district they desired and they liked the home’s layout.
Now, eight years later, they feel trapped in their Youngsville, Louisiana, house, which they say has toxic mold because of faulty construction that the builder didn’t properly address during the home’s warranty period.
“We’re still living in the home right now,” Alicia Dixon said in a Thursday interview. “We can’t afford to move, and we don’t have any family in the area.”
“You’re essentially a prisoner in your own home,” added her husband, West Dixon.
The Dixons have become the face of what attorneys hope will become a class-action lawsuit against D.R. Horton and one of its subcontractors.
Ten south Louisiana attorneys sued D.R. Horton and Bell Mechanical Services in state court this week on behalf of the Dixons and thousands of other homeowners in Louisiana. The attorneys, who filed the lawsuit Tuesday in the 19th Judicial District Court in East Baton Rouge Parish, have asked for a judge to rule on whether the case may proceed as a class-action lawsuit.
“Based on our experts’ investigation, some D.R. Horton designed homes are prone to leakage, high interior humidity levels, and mold or mildew growth,” the attorneys said in a Thursday statement. “We anticipate that thousands of homes across Louisiana and the South will experience these issues.”
The petition was filed by Lafayette attorneys Lance Beal, Alan Haney and Yul Lorio; Baton Rouge attorneys Lewis Unglesby, Lance Unglesby, Jordan Bollinger, Adrian Simm Jr. and Jamie Gontareck; and Denham Springs attorneys Calvin Fayard Jr. and D. Blayne Honeycutt.
Together, they allege that homes built by D.R. Horton after 2012 were not constructed to withstand “normal and typical Louisiana weather.”
D.R. Horton and subcontractor Bell Mechanical Services allegedly “conspired together to intentionally mislead” the Dixons and other homebuyers in a “scheme of fraud and racketeering” while installing and repairing HVAC systems in the new homes, the attorneys said.
The lawsuit alleges that the Dixons’ home was constructed with improper attic ventilation and an improper air-conditioning system that created a negative pressure environment in the home, which draws warm, moist air inside.
When the Dixons took their concerns to D.R. Horton during the warranty period, Bell Mechanical often did not address problems until months after warranty claims had been submitted, the lawsuit says.
Repairs and corrections to known design defects were dragged out “to conceal the home issues and defects with quick fixes, including installing dehumidifiers in the petitioners’ homes,” the lawsuit says. The homeowners were required in the terms of the home warranty to use only Bell Mechanical to service their HVAC system for problems.
The lawsuit says Leslie Gulliken, D.R. Horton’s city manager of the west division of Louisiana, said in a recorded conversation that the building company follows federal building codes that may not be “designed for houses in south Louisiana.”
“We build to the federal mandate code, and we are regulated by federal law,” Gulliken said, according to the lawsuit. “We build in that code and that code was not designed for very humid markets.”
The Dixons and others have paid for inspections and repairs, lost home value, lost use and enjoyment of their home, paid more for electricity, experienced health problems and expenses and suffered inconvenience and mental anguish as a result of D.R. Horton’s and Bell Mechanical’s actions, the lawsuit says.
Attempts to reach a spokesperson at D.R. Horton’s Baton Rouge office and Bell Mechanical’s Baton Rouge office Friday were unsuccessful.
Beal is also representing homeowners in two similar cases currently working through the Lafayette Parish court system. In a Thursday phone interview, Beal said he realized the magnitude of the problem as his team worked on those cases.
“My firm started with the initial cases, and we worked things and continued to investigate and get deeper and deeper into the issues,” Beal said. “Once you get into suits this big, the burden becomes high. That’s why we wanted to file the class-action lawsuit.”
The Dixons, who have four children between the ages of 9 and 18, recently refinanced their $252,000 house in Youngsville’s Sugar Ridge neighborhood to take advantage of a lower interest rate. They have 14 years left on their mortgage.
Although the Dixons say they raised numerous concerns during the warranty period, they didn’t realize how severe the problems were until a few months ago when they had the home inspected for mold at the recommendation of neighbors with similarly designed homes.
“It turned out to be way worse than we imagined,” West Dixon said. “We’ve only been in the house for eight or nine years. It was just unfathomable that it could be this bad.”
Alicia Dixon, who works as a hospital nurse, attributes some health concerns to the home’s condition. She was diagnosed with fibromyalgia a few years ago and suffers from a host of symptoms ranging from brain fog and insomnia to anxiety and depression.
Her symptoms have become so debilitating at times that she’s had to miss work. She said her 16-year-old daughter, who is allergic to mold, has also undergone allergy shots and takes medication twice a day to alleviate her symptoms.
In addition to the Dixons, the attorneys say plaintiffs in the case include those who purchased a new home constructed and sold by D.R. Horton between Jan. 1, 2013, to present day who have experienced problems with mold or mildew growth and damage to their homes.
“We hope this gives people who were clueless kind of like us the courage to speak out,” West Dixon said.
“The reason why we’re doing this is because we don’t ever want anyone else to have to deal with the things we’ve dealt with,” Alicia Dixon added.
A few days before the Dixons’ suit was filed, another Lafayette Parish resident shared concerns about her D.R. Horton home currently under construction in a north Lafayette neighborhood.
Nureaka Ross said in a Facebook video that she witnessed workers nailing shingles directly onto plywood and using only a cardboard-like material instead of plywood behind a brick-and-mortar wall on the exterior of a home. She walked through the construction site with an independent contractor, who explained why those actions and others shown in the video would have negative consequences down the road, especially during a hurricane.
“It breaks my heart because I was excited to be in a new home,” Ross said. “And it’s not worth it, especially knowing the exterior wall is literally just cardboard. There’s holes everywhere, literally, in addition to the roof with shingles directly on the plywood.”
Ross said she plans to get out of her contract with the home builder and that she posted the video on Facebook so other home buyers would be aware of what to look for.
The video, which was recorded live on March 4, has been shared more than 5,000 times.
“I was one of those, thought I was getting a nice, brand new D.R. Horton home, newly built, and unfortunately, that is not the case,” Ross said. “I just have the privilege to see it being built and not be purchasing it later.”
Beal said homeowners in other Southern states have taken D.R. Horton to court over similar problems.
A lawsuit was recently filed in Alabama against D.R. Horton for “critical mistakes” in houses constructed in the Mobile area between 2015 and 2021 that have left homes at risk of “catastrophic failure.”
In 2016, a federal bankruptcy judge in Florida ruled that D.R. Horton engaged in deceptive practices that forced the bankruptcy of a homeowners association in Miami.
“This is something that affects hard-working, middle class Louisianans,” Beal said. “A house is one of the most important and expensive investments that any person makes, and when you see a commonality of issues, we had to do something.”
https://www.al.com/news/2022/03/lawsuit-claims-dr-horton-homes-cant-withstand-louisiana-humidity-alabama-case-cites-critical-mistakes.html?outputType=amp
Heading north...a real company.
Awesome looking 5 year chart.
yes IHub is all penny players
This ticker is virtually unknown in the IHUB community.
Big news for LIGA's projects
More details following on up to the conference in 3 weeks
Friday's have been good to it's sp
We'll see
Good luck
following here from LIGA board, huge them partnering together DHI https://www.otcmarkets.com/stock/LIGA/news/LIG-Assets-Inc-Announces-Signing-of-Memorandum-of-Understanding-with-Horton-World-Solutions-LLC-For-Development-of-LIGAH?id=238628
Home-builders Are Under Pressure Again, But Here's The Level For This Leading Stock $DHI
As we all know, the leading home-builder stocks have been under severe selling pressure since late January 2018. Higher interest rates have been the catalyst for the decline in the sector. The Federal Reserve continues to signal that they will continue to steadily increase rates to a more normal level as long as the economy is strong. This action should keep the home-builder stock somewhat depressed for a bit. Many of the leading home-builder stocks have now fallen so much that they are actually looking attractive.
One particular home-builder stock that I'm watching closely is D.R. Horton Inc (NYSE:DHI). This stock topped out at $53.32 a share in January 2018. Today, the stock is trading around $33.30 a share. Traders and investors should now watch the $30.50 area as the next major support level. This is where the stock staged a breakout in February 2017. Often, when stocks test past break-out levels they will be defended by the institutional money. This is where I will be looking to enter DHI stock on the long side.
Gareth Soloway
InTheMoneyStocks
Forestar Group Inc. has sold $232 million of homes and land to the East Coast investment firm that had tried to acquire the Austin real estate company in 2017.
In a Thursday securities filing, Forestar said it offloaded 20 community development projects to an affiliate of Starwood Capital Group and an affiliate of Land Strategies Management.
The 20 community development projects total about 750 home lots that are developed or under development as well 4,000-plus undeveloped lots, plus 730 acres and an ownership stake in a multifamily property in Katy, Texas.
Connecticut-based Starwood was in a bidding war last year for Forestar (NYSE: FOR), but lost out to Dallas-based D.R. Horton Inc., the nation's largest homebuilder. The $560 million D.R. Horton deal closed on Oct. 5; it now owns a majority stake in Forestar.
Also on Thursday, D.R. Horton (NYSE: DHI) reported that Forestar generated about $30.8 million in revenue between the close of the deal and the end of 2017. Income before taxes was $4 million.
In 2007 Forestar was spun out of the now-defunct Temple-Inland Co. to handle a variety of operations and investments related to land banking, land development, groundwater rights and leasing, minerals and natural resources management and the oil and gas business.
But its mission shifted drastically over the years, and it sold off its oil-and-gas and multifamily divisions. It now focuses on land development for real estate projects and is active in 11 states.
Daniel Bartok took over as Forestar CEO in December, replacing Phillip Weber.
Stock keeps going up even on down market days. Huge buys came in end of day on several home building stocks. I think what is happening is that fund managers are waking up to the realization that the housing market is sizzling hot. Demand far outstrips supply which benefits DHI tremendously. More good news ahead for DHI! Another good one is MSPC. That stock is up 50% today on heavy volume and closed at a 52-week high but it's not too late to get on board.
Revenue jumped 15%
Pre-tax income surged 23%
All good news coming out for DHI. Foot traffic at open houses is very heavy in the west according to reports. Very high demand can only help DHI.
I see a message like this on another message board, "Sell DHI because interest rates are going up and there is no space/land to build on." Many reports are claiming that home builders will slip in 2018 due to higher interest rates.
Nonsense! The higher mortgage rates go, within reason (below 6% per Lawrence Yun), the more money goes into the pocket of DHI. Yes, higher interest rates lower demand a bit but demand is very high right now, far outstripping supply which is constrained. DHI is in a great position, it should be a great 2018. Now, if only DHI can turn a profit and announce a share buyback. That will take a few good quarters first. Some builders could slip a bit because they are not in the same great markets as DHI. DHI is in some of the best markets in my opinion.
By Lucia Mutikani
WASHINGTON, Feb 16 (Reuters) - U.S. homebuilding rose to more than a one-year high in January, boosted by strong increases in the construction of both single- and multi-family housing units, and further gains are likely with building permits surging to their highest level since 2007.
Other data on Friday showed a jump in import prices last month amid solid increases in the costs of petroleum and a range of other goods, bolstering expectations that inflation will accelerate this year. The bullish housing data suggested the economy remained on firmer footing at the start of the year despite weak retail sales and industrial production in January.
"The economy is back on a winning path for stronger growth even if it is not firing on all cylinders with all sectors participating," said Chris Rupkey, chief economist at MUFG in New York.
Housing starts jumped 9.7 percent to a seasonally adjusted annual rate of 1.326 million units, the Commerce Department said. That was the highest level since October 2016 and followed an upwardly revised sales pace of 1.209 million units.
Economists polled by Reuters had forecast housing starts rising to a pace of 1.234 million units last month after a previously reported rate of 1.192 million units.
Building permits surged 7.4 percent to a rate of 1.396 million units in January, the highest level since June 2007.
A tightening labor market is boosting demand for housing, but rising mortgage rates and house prices could slow the momentum. Despite the unemployment rate being at a 17-year low of 4.1 percent, annual wage growth has not exceeded 3 percent.
STRONG BUY!
ATLT = SMART Home with HON ie Honey Well DIG IN ATLT lots there
CC Call tomm
D.R. Horton $DHI is scheduled to report earnings on Tuesday before the market opens. The Wall Street consensus price target of $33.70 is slightly below finbox.io's fair value estimate of $34.69.
10 Value Stocks to Watch In This Uncertain Trump Market
DHI signed Sales/Partnership Agreement with RJDG, definitely going to boost sales. Both companies Grossly Undervalued!!
Keefe, Bruyette & Woods upgraded D.R. Horton from Market Perform to Outperform. Seven valuation models imply an intrinsic value of $35.50 per share representing 21% upside:
Analysis
D.R. Horton Inc still highly undervalued...earnings tomorrow
Fundamentals
D.R. Horton Sees Jump in New-Home Deliveries (11/10/15)
Fort Worth home builder skirts labor shortage plaguing industry to post 23% gain in deliveries
By Kris Hudson
Home builder D.R. Horton Inc. sidestepped the labor shortages plaguing many of its peers, posting a 23% year-over-year gain in delivered homes for its fiscal fourth quarter ended Sept. 30.
D.R. Horton, the largest U.S. home builder by sales, contracted to sell 8,477 homes in the quarter, up 19% from the year-earlier period, and delivered 10,576. The Fort Worth, Texas-based builder notched a 0.6 percentage point increase in pretax profit margin to 10.7%, a sign that rising labor costs haven’t tripped it up.
“No question, labor is tight,” D.R. Horton CEO David Auld said Tuesday on a conference call with investors to discuss the quarterly results. “The reports coming out from other builders—we’re not immune to it. I think we may have mitigated it by having the best operating team in the industry. The relationships that our people have with vendors and suppliers put us at the front of the line.”
D.R. Horton’s experience is atypical. Big builders such as PulteGroup Inc. and MDC Holdings Inc. have reported declines in home deliveries in the third quarter as they scramble to find enough crews to complete construction of houses sold during this year’s busy spring selling season. Others, such as Meritage Homes Corp. , reined in their financial guidance due at least in part to construction delays caused by labor shortages.
Much of the U.S. home-building industry has struggled to cope this year as new-home sales gained momentum but the ranks of construction workers remained depleted from the downturn. The seasonally adjusted annual pace of construction starts on single-family homes in September of 740,000 marked a 72% gain from the market’s nadir in 2011. In comparison, employment in residential construction has increased by 25.5% to nearly 700,000 in October from the market’s trough in January 2011, Department of Labor data show.
“It’s clearly impacting our production,” Pulte CEO Richard Dugas said of labor shortages during the builder’s quarterly call with investors on Oct. 22. “In general, we’re having to pay more for labor.”
Builders, contractors and economists think that the construction industry has been slow to rebuild its workforce because pay isn’t high enough to lure people from other industries, tight immigration laws have limited one source of labor, and networks for training and recruitment have atrophied since the downturn. Some builders now are paying more to lure workers back from retail, hospitality and other indoor jobs. Those pay increases are expected to result in higher new-home prices.
D.R. Horton, however, said higher pay isn’t part of its solution yet. The builder notched a revenue gain of 4% a square foot of homes delivered in the fourth quarter from a year earlier while its costs for labor and materials, excluding land, increased by 3.5% in that span. Still, the builder anticipates that labor costs will be a limiting factor next year, contributing to its forecast that its margins will show minimal to no gains in 2016 from 2015.
D.R. Horton, which operates in 27 states, draws subcontractors partly because it produces a high volume of home sales, which in turn provides them steady, relatively predictable work. Mr. Auld added that the builder’s seasoned executives in many of its markets have long-standing relationships with subcontractors, which helps keep them on its sites.
Another factor in D.R. Horton’s favor: The builder relies more than many of its peers on sales of speculative homes, meaning those that go under construction without a buyer already lined up. That allows D.R. Horton a bit more leeway in spreading out its construction schedule rather than lumping much of the work toward the end of each year.
Still, analysts suspect the labor shortage eventually will trip up most, if not all, home builders.
“If there’s anyone who can manage through this, from a revenue standpoint, it’s probably them,” said Mike Dahl, an analyst with Credit Suisse AG, regarding D.R. Horton. “The question is really the implication for margins. Even if you are able to get these crews in, how much are you having to pay to get the work done? And is that going to eat into your gross margins?”
All told, D.R. Horton reported a 27% increase in sales for its fourth quarter to $3.1 billion. It posted a 44% gain in net income to $238.9 million.
Meanwhile, the builder gave an optimistic forecast for its 2016 fiscal year, predicting revenue of $12 billion to $12.5 billion, a gain of at least 11% from its fiscal 2015 revenue of $10.8 billion. It predicts delivering 39,500 to 41,500 homes, up at least 7.8% from 2015.
“We still think there are legs left in this (housing) cycle,” Mr. Auld said. “We’re not even close to what is historical demand.”
http://www.wsj.com/articles/d-r-horton-profit-jumps-as-do-new-home-orders-and-closings-1447156637
New Home Construction Spending Surges Confirms New Home Sales
Things just got real for DR Horton.
The National Association of Home Builders (NAHB) economist Josh Miller took a dive into the private residential construction spending in the monthly update from the Census Bureau. He found that single family home construction spending is "surging". The NHB also released that single family home construction spending increased by 12.3% for the year.
The NAHB said that the steady increase in single-family construction spending is a reflection of improving market conditions. The single-family market recently experienced the highest pace of new home sales since June 2008.
Folks this is not only awesome news for DR Horton stock but for the entire U.S. economy.
What is driving home sales is falling mortgage rates. Below is an excerpt from the weekly show broadcast every Saturday evening on YouTube where I talk about the big news last week on single family homes construction spending.
Housing Finance is in the black!
Fannie has repaid their bailout!
http://finance.yahoo.com/news/fannie-earns-6-5b-4q-130002054.html
30'S by end of year....great builder...
Detearing , u still think upper 20s. Had a sell at $26 for a while
DHI, Q1, Operating Metrics Released 01/28 04:30 AM
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07:30 AM EST, 01/28/2014 (MT Newswires) -- Company Name: D R HORTON INC Quarter: FQ -2014 - Q1, 2013-12
Operating Metric
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Gross profit / (loss)-Homebuilding-Home
--- Actual: 364.1, Est: 310.6, Surprise (vs. consensus): 17.24%
Gross profit / (loss)-Homebuilding-Land/lot
--- Actual: 0.5, Est: 1.0, Surprise (vs. consensus): -50.00%
Homes Closed
--- Actual: 6188.0, Est: 5374.1, Surprise (vs. consensus): 15.14%
Net sales order-Homes sold
--- Actual: 5454.0, Est: 5234.9, Surprise (vs. consensus): 4.19%
Sales order backlog-Homes in backlog
--- Actual: 7684.0, Est: 8065.3, Surprise (vs. consensus): -4.73%
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Get more news on:SYMBOLS: DHI NEWS TYPE: Company News, Earnings News, Earnings Release, Extended Trading, Pre-Market Movers SECTORS: Consumer Discretionary, Household Durables, Industrials, Construction and Engineering
DHI, Q1, Operating Metrics Released 01/28 04:30 AM
--------------------------------------------------------------------------------
07:30 AM EST, 01/28/2014 (MT Newswires) -- Company Name: D R HORTON INC Quarter: FQ -2014 - Q1, 2013-12
Operating Metric
---------------------------------------------------------------------------
Gross profit / (loss)-Homebuilding-Home
--- Actual: 364.1, Est: 310.6, Surprise (vs. consensus): 17.24%
Gross profit / (loss)-Homebuilding-Land/lot
--- Actual: 0.5, Est: 1.0, Surprise (vs. consensus): -50.00%
Homes Closed
--- Actual: 6188.0, Est: 5374.1, Surprise (vs. consensus): 15.14%
Net sales order-Homes sold
--- Actual: 5454.0, Est: 5234.9, Surprise (vs. consensus): 4.19%
Sales order backlog-Homes in backlog
--- Actual: 7684.0, Est: 8065.3, Surprise (vs. consensus): -4.73%
--------------------------------------------------------------------------------
Get more news on:SYMBOLS: DHI NEWS TYPE: Company News, Earnings News, Earnings Release, Extended Trading, Pre-Market Movers SECTORS: Consumer Discretionary, Household Durables, Industrials, Construction and Engineering
DR Horton's Business Picked Up Further in Jan -- Market Talk 01/28 04:39 AM
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7:39 EST - Like NVR on Monday, a strong beat from DR Horton (DHI) as the homebuilder saw a 4% increase in F1Q orders despite the higher interest-rate environment. As such, the number of homes in DHI's backlog ended last year 20% higher than where 2012 concluded. The company continues to boost its homebuilding margins from a year earlier amid the increased activity (closings rose 19% last quarter). Chairman Donald Horton adds, "Our weekly sales pace has accelerated in January." DHI jumps 5.5% premarket to $22.10 after having dropped 6.2% this month. (kevin.kingsbury@wsj.com)
(END) Dow Jones Newswires
01-28-140739ET
Copyright (c) 2014 Dow Jones & Company, Inc.
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Get more news on:SYMBOLS: DHI NEWS TYPE: Corporate Events SECTORS: Consumer Discretionary, Household Durables, Industrials, Construction and Engineering, Electrical Equipment
$26 - nice...$30's this year, IMO.
Here ya go, effective today:
DR Horton (DHI) MKM Partners Neutral > Buy Target $23 » $26
Chart looking very nice...especially macd on weekly stockcharts.com.
$22.32 and weekly stockcharts.com just looking great with lots more upside. Don't be scared to get in...