Has anyone seen anything that might explain the drop today on another up day for the market?
Or maybe a case of people taking profits after a nice little run-up?
I have not found anything substantial since they released June closings last week.
Thoughts?
Kevin
Maybe a so so article in Seeking Alpha
http://seekingalpha.com/article/3988196-lgi-homes-expect-2h-…
which I think is meaningless. He says that one of two analysts gave a very high revenue estimate for the quarter, so they may miss “consensus” estimate. Now that really is “meaningless” to me.
Saul
Maybe a so so article in Seeking Alpha
Yeah, I wasn’t really convinced by the argument. Yahoo estimates forecast 42% revenue growth YoY in Q2. Well, we already know that closings were up 32%. So the question is, do sales increases etc account for the difference between the increase in closings and the increase in revenue?
Well yes. If you extrapolate the closings in the first Q (up 25.7%) and revenue in the first Q (up 34.6%), then revenue up 42% on closings that were up 32% doesn’t sound unreasonable.
In fact, I calculated 43%.
Bear
So the question is, do sales increases etc account for the difference between the increase in closings and the increase in revenue?
And when I said “sales increases,” I meant price increases.