Tag Archives: Hovnanian Enterprises

Business, Finance, Occupation & Industry

9 Homebuilders That Soared This Week

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By Rick Munarriz, The Motley Fool

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One of the hottest sectors this past week was housing. Things certainly didn’t start out that way. One of the industry’s bellwethers posted disappointing quarterly results on Monday with revenue and earnings growth falling well short of analyst expectations.

But investors hungry for a second opinion got substantially better news when D.R. Horton — the country’s largest homebuilder — posted blowout quarterly results. Revenue soared 49%, and profitability skyrocketed 173% higher.

Most indications point to a speculative market in which potential homebuyers are rushing to lock in home prices before they head even higher. The National Association of Realtors reports that the average home is on the market for just 62 days, an entire month shorter than the average of 91 days a year earlier. The association also reported that home prices rose 11.8% last month, and that’s the largest year-over-year increase since 2005.

This has all of the makings of another housing bubble, but investors didn’t care. They dove into the residential property developers last week, with several companies cranking out double-digit percentage gains.

Company

April 26

Weekly Gain

D.R. Horton

$26.66

21%

PulteGroup

$21.35

19%

Meritage Home

$49.26

19%

M/I Homes

$25.10

18%

Hovnanian Enterprises

$5.67

15%

KB Home

$23.04

13%

M.D.C. Holdings

$38.18

13%

Toll Brothers

$34.69

12%

Lennar

$42.30

11%

Source: Barron’s.

We’re not just talking about a week of gains here. Pulte , KB Home , and Hovnanian more than doubled last year. Hovnanian saw its stock soar 363% in 2012!

It probably isn’t a surprise to see luxury homebuilder Toll Brothers doing so well in this climate. High-end retailers have held up surprisingly well at this stage of the economic turnaround, so it’s not a shock to see the affluent taking advantage of historically low rates to jump on freshly constructed properties. However, Pulte, KB Home, Hovnanian, and D.R. Horton cater to mainstream homebuyers merely looking for a place to call their own after years of renting.

It may not get any easier from here, but investors probably felt that way at the end of last year. Hovnanian has given up some of last year’s gains, but most of the other developers have only padded their already impressive 2012 returns. KB Home is already trading 46% higher in 2013 after more than doubling last year.

The pent-up demand is there for new homes, but investors should be looking out for any signs that the bubble will burst. The last thing they want is to be smack-dab in the middle of a sudsy mess.

Building homes isn’t the only hot revolution
With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the “made in China” era. Well, it may be here. Read all about the biggest industry disruptors since the personal computer in “3 Stocks to Own for the New Industrial Revolution.” Just click here to learn

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Armada Oil Adds Marceau Schlumberger to the Board of Directors

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By Business Wirevia The Motley Fool

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Armada Oil Adds Marceau Schlumberger to the Board of Directors

DALLAS–(BUSINESS WIRE)– Armada Oil, Inc. (OTCBB: AOIL) (“Armada Oil” or the “Company”), a growth-oriented oil and gas Exploration and Production (E&P) company, today announced that Marceau Schlumberger has joined the Company’s Board of Directors.

Marceau Schlumberger is a Partner and Founder of Coral Reef Capital (“CRC“), a private equity firm focused on investments in the natural resources sector, including oil & gas exploration and production, metals & mining, energy and related infrastructure and services. Prior to founding CRC, he served as Principal of Columbus Nova from 2004 to 2008 where he was responsible for sourcing, structuring, negotiating and managing private equity investments and buyouts, leading several successful transactions such as the leveraged buyout of Cyalume Technology Holding, Inc., as well as land finance and development partnerships with Hovnanian Enterprises, Inc.

Prior to that, Mr. Schlumberger was an Associate at Triumph Capital, a private equity fund with $950 million of capital where he completed seven investments, assisted in the profitable sale of two portfolio companies and served as a Board Observer for several Triumph portfolio companies. He was also a founding member and analyst of Smith Barney’s Asia Investment Banking Group and an analyst at Zilkha & Co., a buy-side M&A advisory and merchant banking firm.

In addition to Armada Oil, Mr. Schlumberger currently serves on the Board of Directors of the following private companies: Shawnee Exploration, Microline Surgical Inc. (member of the Compensation Committee), Rawhide Mining, LLC (Chairman of the Audit Committee), and PF Leonville. He previously served on the Boards of the following private companies: Pacific Building Care, Cyalume Technologies, Inc. (now public), ISCON Video Imaging and Craig Michaels, Inc.

“Marceau’s financial background and experience further diversifies the Company’s team of seasoned industry experts, and his knowledge and experience with mergers and acquisitions, buyouts and capital formation for middle market companies will be extremely valuable as we strive to become an industry leader. We are pleased to have him on our Board,” said Randy M. Griffin, CEO and Chairman of Armada Oil.

“With oil and gas opportunities in multiple regions, I believe Armada Oil is positioned to become a high growth company and I look forward to providing support and strategic opportunities that will help to build shareholder value and visibility in the public markets,” commented Marceau Schlumberger.

For more detailed biographies on all of Armada’s Board members, visit the Company’s new corporate site at www.armadaoil.us.

…read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Is the Manufacturing Sector Ready to Collapse?

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By Rich Duprey, The Motley Fool

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The economy is still expanding, according to the Institute for Supply Management’s manufacturing index, which came in at 51.3 for March, the fourth consecutive month of growth it’s recorded. But it was well below expectations of 54.0, and with new orders tumbling to just 51.4 from 57.8 — a better than 6% decline — it’s suggestive of a U.S. ready to slip back into recession.

An index above 50 is considered an expanding manufacturing economy, and, naturally, below that level is contraction. The index was driven higher last month based on the strength of the auto and housing industries, aligning with what’s been seen in those markets. General Motors , for example, recorded a better than 6% jump in new-vehicle sales in March, while Ford was up just less than 6%. Chrysler came in third at 5%.

Not just muscle cars
Their sales of full-size pickup trucks were also robust, and analysts said that would coincide with the strength of the housing markets in recent periods. According to just-released Commerce Department data, private residential construction climbed 2.2% to $303.4 billion, its highest level in more than four years.

When Hovnanian Enterprises reported its quarterly results last month, the homebuilder showed a narrower loss than the year-ago figure based on higher sales and new orders. With analysts at Morgan Stanley forecasting pricing strength in the market this year — anywhere from 2% to 10% growth is seen in 2013 — the sector could be a bright spot, and builders could be ones to watch.

Rise of the machines?
What investors really need to keep an eye on is that falloff in new orders, as machinery was one of just three sectors seeing contraction (petroleum and coal and chemical products were the other two). We did see the global PMI just come out a bit stronger than February, and that was helped along by China, which was stronger than anticipated.  

The warning shot again, however, is Europe, where output declined and unemployment of 12% across the eurozone is at record high levels. The dire financial situation unfolding in Cyrpus is waiting for a match to ignite it across the continent.

Offsetting some of that negativity is the rise of manufacturing jobs here at home, which grew 1.6% in March, but with industrial suppliers MSC Industrial Direct and Fastenal having previously warned of industry weakness, and with both due to report earnings next week, we’ll know whether the softness they experienced last quarter plays out. These companies rise and fall with the PMI indexes, domestic and global, and the mixed signals we’ve gotten suggests that their earnings won’t provide much clarity.

If the eurozone financial contagion spreads, it’s an all-bets-are-off scenario, but I’m already pessimistic we’ll be soon heading back down the rabbit hole.

A long, strange trip
If you’re concerned that Ford’s turnaround has run its course, relax — there’s good reason to think that the Blue Oval still has big …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Make Money on the Housing Recovery, the Easy Way

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By Selena Maranjian, The Motley Fool

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Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some home construction-related stocks to your portfolio, the iShares Dow Jones U.S. Home Construction ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF‘s expense ratio — its annual fee — is a relatively low 0.47%.

This ETF has performed rather well overall, topping the world market over the past three and five years. In 2012, it posted a whopping 79% gain. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why home construction?
This is a cyclical industry, and the cycle has been on an upswing, as a recovery in housing is resulting in more homes being built. A general economic recovery should lead to more remodeling and maintenance work, too, boosting business for companies tied to the industry. Indeed, many companies in this group more than doubled in value in 2012.

More than a handful of home construction-related companies had strong performances over the past year. Hovnanian Enterprises surged 106%, for example, even though not so long ago some thought it might end up out of business. Standard Pacific , another builder, gained 84%. These two companies have had a harder time of it than some rivals as they focus more on entry-level homes, with a clientele that has been more severely hurt by the recent recession. Strong home sales reports have been boosting these stocks.

USG advanced 64%, specializing in gypsum and building materials such as wallboard, cement board, and joint compound. Revenue, which had been falling for several years, has started moving in the other direction in the past few years, and its bottom line is expected to move from the black into the red soon. Its recent earnings report featured much improvement, though it disappointed some analysts with its earnings.

Paint giant Sherwin-Williams soared 60%. It recently bought global paint giant Comex, based in Mexico, for $2.3 billion. Some don’t like that the deal will add to the company’s debt, but others see it as a smart strategic move. Its fourth-quarter earnings report featured record revenue up 8.8% and earnings up more than 50%. Some see the stock as pricey now, but with a promising future. Management boosted its dividend by 28% recently.

The big picture
Long-term demand for housing and construction isn’t going away anytime soon. A well-chosen ETF can grant you instant diversification across any industry or group of companies — and make investing …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Buffett's Favorite Stock Is Leading the Dow Today

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By John Maxfield, The Motley Fool

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Blue-chip stocks are down today as investors and analysts weigh good news from the domestic housing sector against the ongoing economic drama in the Mediterranean. With roughly an hour remaining in the trading session, the Dow Jones Industrial Average is off by 26 points, or 0.18%.

The biggest news since the weekend is that the Mediterranean nation of Cyprus is on the verge of levying a tax against bank deposits. On Sunday the country added its name to a growing list of European countries bailed out by the Eurozone and the International Monetary Fund. To fulfill its side of the 10 billion euro bailout bargain, however, Cyprus must come up with 5.8 billion euros in new revenue. And for this, it’s looking to its banking sector, long known as a haven for international riches — particularly of the Russian variety. The fear is that other countries will follow suit, thereby prompting funds to flee the continent.

On the other side of the equation, fueling bullish sentiments today was a positive report on the domestic housing market. According to data released this morning by the Department of Commerce, housing starts climbed 0.8% last month to an annualized pace of 917,000. Economists surveyed by Bloomberg had projected a figure of 915,000. Meanwhile, building permits rose by 4.6% to a rate of 946,000 — the highest level since June of 2008. This beat economists’ expectations for a 925,000 figure.

“Home building continues to recover and add to the recovery,” an economist at PNC Financial told Reuters. He went on to note that the rise in permits suggests that “we will have a solid spring.” A California-based homebuilder echoed this confidence in an interview with Bloomberg, saying: “We see a lot of positive signs out there. All the numbers were positives going into the year, and again, we have a favorable outlook for the year.”

With the latter news in mind, it’s no surprise that stocks of homebuilders are rallying today. Among others, Hovnanian Enterprises is up by 3%, Toll Brothers has gained 0.7%, and KB Home is up 1.9%. But as my colleague Dan Caplinger said earlier of Hovnanian: “At some point the homebuilder will need to start working its way back to profitability amid better conditions. Otherwise, investors will conclude that the stock has gotten ahead of itself, and it will give up some of its huge recent gains.”

In terms of Dow stocks, the best-performing component on the blue-chip index today is none other than Warren Buffett‘s favorite: Coca-Cola , in which his company Berkshire Hathaway holds a nearly 9% stake. Paradoxically, the impetus for Coke’s climb may be Cyprus. As one of the soundest and most stable companies in the world — Buffett famously claims that even a monkey could run it — Coke is seen as a classic defensive stock. When things are bad, in turn, investors have a tendency to move in its direction. …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Poised for New Highs as Staples and Big Lots Beat the Street

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EST indicate that the Dow Jones Industrial Average may continue its record-breaking run and open up by 0.31% this morning, while the S&P 500 may open 0.34% higher. Yesterday’s all-time high helped drive a big improvement in sentiment, and the CNN Fear & Greed Index swung higher to close at 71, up from a previous close of 60.

Today’s economic reports begin at 8:15 a.m. EST with the latest ADP employment figures, which are expected to show that 175,000 new private-sector jobs were created in February, down from 192,000 in January. At 10 a.m. EST, January’s factory-order data is expected to show a 2.2% fall in orders during the first month of 2013 following a 1.8% increase in December 2012. Finally, at 2 p.m. EST, the latest Federal Reserve Beige Book will provide further insight into the state of the economy.

In an earnings release this morning, Staples beat analysts’ expectations with adjusted Q4 earnings of $0.46 per share, ahead of consensus forecast for $0.45. The office supplies company also announced a 9% increase to its quarterly dividend. However, including one-time charges, Staples earned just $0.12 per share, and the company gave downbeat guidance for 2013. Shares are down 5.2% in premarket trading.

Big Lots also beat expectations, reporting fourth-quarter adjusted earnings of $2.09, ahead of consensus estimates of $1.99 per share. Other companies expected to release quarterly earnings before the markets open this morning include American Eagle Outfitters, Fresh Market, and Hovnanian Enterprises, while PetSmart is due to report earnings after the closing bell tonight.

European markets
Most markets were broadly unchanged in Europe this morning as investors took stock of recent gains and awaited further developments in Europe — particularly in Italy, where a new government has still not been formed following the country’s recent elections.

At 7:30 a.m. EST, the DAX was up 1%, the CAC 40 was up 0.15%, the FTSE MIB was up 0.1%, and the IBEX 35 was up 0.34%. In London, the FTSE 100 was up 0.28%, led by telecom heavyweight Vodafone , which surged 6.8% higher after Bloomberg reported last night that the firm has been in discussions with Verizon over a possible merger. The report suggested that merger discussions had failed, leaving a sale to Verizon of Vodafone’s 45% stake in Verizon Wireless as a more likely option.

If you’re looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, “The Top Growth Share For 2013,” highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company is a household name, and its earnings per share have risen by 44% since 2009 — so click here now to download your free copy of this report while it is still available.

The article Dow Poised for New …read more
Source: FULL ARTICLE at DailyFinance