Technical Olympic USA, Inc. (TOUS)

[Duffau]

1200 homes sold Since Feb 1, 2008.

Did they sell all those homes at a profit?

Of course not. Most were started last year when things were really bad. They are just trying to get them off the books and raise some needed cash. Every sale is important at this early part of the Chapter 11. Even those sold at a loss.

Those new homes that are being contracted for now are going to be profitable. Not much profit right now, I'm sure, but it keeps the workers happy and all the direct costs covered. Eventually the margins should improve substantially. That's why the business plan projects positive stockholder equity in 2011. That shareholder equity exists in the plan, means everyone else will be paid in full with cash or new exit financing, and there will be shareholder equity for us. The Greeks who own this company will get most or all of their company back.