San Diego, CA 7/10/2009 2:33:04 AM
KB Home Surges on Results, Jobless Claims, Mortgage Rates
Consider it the perfect storm for homebuilder KB Home (KBH)... the White House is keeping interest rates low, jobless claims are falling, and home sales are improving.
KB Home (KBH) shares are up today, and perhaps for good reason. The Labor Department reported initial jobless claims fell last week to the lowest level since January. Factoring in how the White House's subtle pressure to keep interest rates near record lows, and the growth environment for homebuilders like KB Home is solid. KB Home shares are up nearly 10% today.
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KB Home's reported a quarterly loss of $78.4 million on Friday ($1.03 per share). That was better than of $255.9 million ($3.30 a share) for the same quarter a year earlier. KB Home's better results were partially attributable to smaller charges. Though 31% below last year's total, the company's total orders were still almost 60% better than the prior calendar quarter.
About KB Home
KB Home (KBH) constructs and sells homes in the United States. The company builds various types of homes, including attached and detached single-family homes, townhomes, and condominiums, designed primarily for first-time, first move-up, and adult buyers. It also offers mortgage services in a joint venture with Countrywide KB Home Loans. In addition, the company, through its subsidiary, KB Home Mortgage Company, provides title and insurance services to its homebuyers. KB Home sells homes under various purchase contracts in Arizona, California, Colorado, Florida, Georgia, Nevada, New Mexico, North Carolina, South Carolina, and Texas. The company was founded in 1957 and is headquartered in Los Angeles, California.
Forward-Looking Statement: This press release may include or imply "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
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http://community.smallcapnetwork.com/Small-Cap-Home-Builder-Stocks-Grasping-At-Straws/s/article/view/p/mid/1/id/135/
