Toll Brothers reports blow out earnings and raised guidance yet again. The CEO of Toll Brothers just said in reference to speculation of a top in homebuilding: "shorts will get crushed, you haven’t seen nothin’ yet". Hmmm… it’s these kind of statements that usually mark a top. We shall see.
OK give me a break, if the public thinks Toll Brothers stock is a
buy today at around 23, they have to be living in a dream world.
Microsoft peaked in 2000, since then it has come down from the
60’s to 24 to 28. This stock has gone nowhere in eight (8) yes
8 years. They have no debt and loaded with cash and make
plenty of money each year. On the other hand Toll Brothers will
post a sizeable loss this year, with a little cash to spare and plenty
of debt. Around 2.2 billion. They will have a very very difficult time
to find any profit at all in the next few years. His houses are over
valued and sell to that class of people who think they are rich
on someone elses money. Sure they own a BMW and a new
expenses home. The bank and the loan company are the real
owners. My prediction this stock will see 12 before the end of
the year.
Hmm.. you’re responding to an article written in 2005? Where in this article does it say that Toll Brothers is a buy? Outside of that, good points Steve. I have never thought that homebuilders should be bought and held for the long haul, but I have been saying that they present very good trading opportunities for a couple of months now. I still believe that. At some point, it will be time to get out of the homebuilders though with profits in hand.