LGIH Closing Flat to Down

Recent closings fail to meet expectations…
https://seekingalpha.com/news/3255983-lgi-homes-minus-5_1-pe…

What is truth?

Management still seems very confident in their estimates. At this point would they already have pre-qualified buyers and/or cash deposits on those predicted closings? The end of 2017 is not all that far off.

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At this point would they already have pre-qualified buyers and/or cash deposits on those predicted closings? The end of 2017 is not all that far off.

Are you suggesting the company is predicting the 4700 sales because they have pre-qualified their buyer and have deposits for the remaining close to 4000 home sales?

LGIH has one of the shortest closing window in the industry. Accept management enthusiasm FWIW but assuming they have locked down the sales for the rest of the year is a very big leap of assumption.

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Not suggesting anything. Just asking. I don’t know much about how purchasing a newly built home works. All 3 of my home purchases have been existing. It would seem to me that people could come look at a model, look at a specific lot and make a decision on a major life purchase 6 or 9 months out. I have no idea if that’s the way this works. That’s why I’m asking.

Not sure down 6% counts as flat-to-down…

Andy, K is correct. If they had an interesting % of those sales in the bag, they would tell you. It would be nice if they gave a little “color” on their confidence, explained why those sorting the stock are getting it (and especially ytd results) wrong.

I was very tempted by this–the last five years, and their success in meeting their own guidance since going public, are compelling–but the short interest (32%!) kept me away. 437 closings/mo. on average for the rest of the year is no small hurdle…

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