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August 27, 2007 How bad is it really for the homebuilders?
On August 1, 2001, a well-known Colorado homebuilder and Quist client, Sanford Homes sold to Beazer for $66 million. Beazer's stock price at the time, adjusted for splits was $22.58 per share. The Beazer ride has been wild. If Sanford shareholders had taken an all stock deal and held their position, their value would have peaked at more than three times the price in January of 2006 (nearly $250 million) when Beazer stock reached $82 per share. Of course, today their position would be worth about $30 million as Beazer stock on Friday was $10.18. Not quite the Internet Bubble (yes, Beazer has had some problems that others have not) but remarkable nonetheless. I guess the recent Business Week cover "Bonfire of the Builders" says it all.
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