Daniel Oppenheim
Daniel Oppenheim
community decline expected given magnitude quarter surprised trends weaker
While we have expected weaker trends in orders, we were surprised by the magnitude of the 20% decline in the quarter given the significant community growth.
activity believe demand high increasing inventory lead less levels pace price
We believe the high pace of construction activity and softening demand will lead to increasing inventory levels through 2006 and less price appreciation.
downside guidance later likely modest reduction relatively several sharp sharper viewed
While there may still be some downside to earnings, we think the sharp reduction will likely be viewed as being relatively better than other companies, who may need several modest reductions or a sharper reduction in guidance later in the year.
believe following pressure rally sharp start stocks
We believe that following the sharp rally at the start of '06, home-building stocks may come under pressure on eroding fundamentals.