A few random Headlines re KB Homes:
KB Home says home orders are up
KB Home 2Q loss narrows, new orders up from 1Q
KB Home new home orders up from 1Q
KB Home's quarterly loss narrows
SOME FACTS FROM KB'S PRESS RELEASE:
Revenues totaled $384.5 million in the second quarter of 2009, down 40% from $639.1 million in the year-earlier quarter.
The Company ended its 2009 second quarter with a cash balance of $1.10 billion.....the Company’s debt balance totaled $1.71 billion
The Company’s backlog at May 31, 2009 totaled 3,804 homes, representing potential future housing revenues of approximately $796.9 million, compared to a backlog of 6,233 homes representing potential future housing revenues of approximately $1.47 billion at May 31, 2008.
Company-wide net orders for new homes in the second quarter were 2,910, down 31% from 4,200 in the second quarter of 2008 but up 59% from 1,827 net orders in the first quarter of 2009.
Some Real Analysis:
Orders were DOWN 31% from last years DEPRESSED ORDER RATE!!!!!!
Backlog was DOWN approaching 50%!!!
Due to depressed pricing, the company is losing money as it sells homes, the more homes it sells, the more it loses.....its losses "narrowed" because it sold a lot less homes this year than last year.....if the company simply shut down.......it's losses would go away.
To use a quarter over quarter sales/order comparison is IDIOTIC at best, and more likely DECEPTIVE at its origin. Spring selling quarter is ALWAYS the historically best selling quarter for housing. Could you imagine a retailer bragging its Christmas/Holiday December selling month was better than November??? How do you think January would compare???
Do you think it would be fair to compare next quarter's KB orders to this quarter's???? NOT A CHANCE!!!!
As indicated above, on a year over year basis, orders are collapsing and backlog is even worse!!!! Selling prices are crashing destroying margins. Ask yourself....why is the mainstream media treating us like IDIOTS???? And if it is being done in this context, where else are we being LIED to?????