Maybe the funniest line, not meant to be funny in tonight’s New York Times…’Still those results beat Wall Street’s expectations “. Let’s look at the results, shall we:
Toll Brothers, the nation’s largest builder of luxury homes, said Wednesday that its third-quarter profit plunged 84.8 percent as the housing downturn and credit worries resulted in cancellations and hefty write-downs. The chairman and chief executive, Robert I. Toll, said the quarterly cancellation rate, which rose to nearly 24 percent, was greater than at any other point in the 21 years the company has been traded publicly. Toll Brothers said earnings for the three months that ended in July sank to $26.5 million, or 16 cents a share, from $174.6 million, or $1.07 a share, during the period a year earlier.
Why not just say homebuilders cause cancer and restless leg syndrome (RLS for you drug home gamers) and most dangerous of all – Limp Dick syndrome in white over extended males.
The most important thing to watch is Toll brother’s reaction to the news. If it rises, the selling has likely run it’s course for now.
What a mess in homebuilding.