Pulte Homes Offers A $99,000 Giveaway

I guess times are tough in the Bay Area. Atleast for Pulte Homes who’s giving away $99,000 incentives if you purchase a home and can close before December 24th, 2006.

Some of the incentives include
* Rolled back pricing
* 100% financing
* Free pool
* No payments for 6 months
* No closing costs
* Free backyard landscaping
* Free window coverings
* Below market interest rates
* No HOA dues for 2 years
* Free Upgrades

& a Free vacation [includes airfair and & 7 night stay] for 2!

Someone sounds desperate to me.

Pity WCI isn’t showing similar weakness. The stock is up 20% from when I bought the puts. Just like I said, all the negative information pushed the stock up. Their cash is 94% less than it was last year and they’ve announced a share buy-back program! Sounds bogus to me. Anyway I bought more puts today.

Here’s a very interesting article on the builders at Rebalancing.blogspot.com

On the worst end you have WCI, with a rapid deterioration of their cash position (93% lower than a year ago), a 461% increase in Q2 borrowings (to $217.8 million) and $43,580,000 spent on share repurchases last quarter. They face huge problems with about half of their revenues historically coming from Florida condo sales and the story is being told in their cash flow statements. Perhaps they are repurchasing shares because they are dumb enough to think their stock is a bargain right now. Perhaps they just want to prop up the share price long enough for insiders to cash out before the collapse.

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