Wednesday, March 07, 2007

Breaking News… Homebuilding Sucks!

D.R Horton's Donald J. Tomnitz is hands down the greatest (or at least the most honest) CEO in history.

First he gave us the “Death Spiral” comment during his participation in last years UBS Homebuilder conference and now he’s delivered his outlook for 2007.

At today’s Citigroup Industrial Manufacturing conference, Tomnitz suggested that 2007 “is going to suck” for home builders.

When asked if he would expect the tougher markets to bring about more M&A activity Tomnitz responded:

“I think from our perspective clearly it’s a little early to be talking about M&A largely because of one good reason, as I said earlier the reason your going to buy another builder is primarily for their land and lot positions… and as we work through 07 and I’ve clearly said,… I don’t want to be too sophisticated here… but 07 is gonna suck. All twelve months of the calendar year. ”

Here's the link to the full audio of D.R. Horton's presentation. The "Suck" comment kicks in at 33:30.

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