Tuesday, April 26, 2005

Toll Bros. CFO Can't See $4B Inventory

The CFO of Toll Brothers had this comment. "'Housing demand is very strong across most of the country,' said Joel Rassman, CFO for Toll Brothers. Rassman said his company is selling every home it can get local permitting authorities to approve."

"We don't see any significant inventory." Well, what's this?

10 Comments:

At 10:15 AM, Blogger John Law said...

I know this is probably a family blog and nobody swears so cover your eyes....

















this blog fucking rocks. sorry, had to say it.

 
At 11:59 AM, Blogger Ben Jones said...

John,
Thanks!

 
At 12:44 PM, Anonymous Anonymous said...

Repeat after me. "Truth is ignorance." Remember George Orwell and his novel 1984. Chomsky, even a leftist wrote a book called "Manufacturing consent in America." He's wright. Even if you shout facts like these in their faces, they keep on denying and think you are probably a pinko or anti-american.

 
At 1:17 PM, Anonymous RentBoy said...

It's anecdotal, but noticed way more internet ads for TOL homes on online sites like Barron's and WSJ Online of late. Certainly not the mark of a company selling all of the inventory it has on hand as fast as it can.

Noticed in their last quarterly report that they expect "inventories to build" in 2005 as they deliver more gaudy, foamboard-clad McMansions....but I don't buy the reasoning. And apparently, neither does the TOL executive corp. given their insider activity.

 
At 1:30 PM, Blogger John Law said...

people are ignorant because they've been blinded by money and fear. they realize a lot of money has been made so they want to make money too. some also fear that if they don't buy now they will never be able to afford a home. it's panic buying. it's a classic mania.

 
At 4:40 PM, Anonymous Anonymous said...

ben, what ratios are good to look at
on the balance sheet?. i saw the inventory rose but also sales.

 
At 7:42 PM, Anonymous Anonymous said...

To be fair, I'm not sure the higher inventory numbers indicate a massive build up in inventories. Higher sales and higher inventories pan out, turnover is just the same. If sales do drop, however, there is definitely a much higher level of inventory to be sold.

 
At 6:41 AM, Blogger Ben Jones said...

This comment has been removed by a blog administrator.

 
At 6:51 AM, Blogger Ben Jones said...

(what ratios are good to look at
on the balance sheet?. i saw the inventory rose but also sales)

It's the size, the numbers. Billions and billions every year. And if you check any major HB, it's the same. They were accumulating inventory like this boom would go on for another decade.

Most of it is land. Some of thes co.s have 100k lots or more.

 
At 7:53 AM, Anonymous Anonymous said...

just read the new homes sales article in the wsj... no mention of a drop of 9.3% in home prices... just increase of 12.2% in sales... amazing...

 

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