| |||||||||||
| |||||||||||
Private Capital Posts sponsored by:
Cramer, writing in New York Magazine, specifically identified KB Home as a target for LBO firms in the New Year. However, six weeks earlier when long-time CEO Bruce Karatz resigned, Dealscape suggested a different fate for the Los Angeles-based homebuilder, a Chapter 11 filing. While the stock ended the year at $51.28, almost $14 over its 52-week low, it was down almost $25 since the start of 2006. The troubled housing market isn't the only factor affecting the stock. The company is one of many caught in options-backdating scandals leading its sole CEO in its 20-year history, Karatz, to step down. Perhaps these factors make it a prime buyout candidate as Cramer suggests. Alternatively, the risk of an inexperienced CEO in a tough market may be too much for most buyout firms to bear. In addition to the lack of tested leadership, the company faces the possibility of shareholder lawsuits and federal prosecution associated with the options-backdating scandal. If buyout firms are interested in homebuilders, there are others with fewer problems — in other words risk — that would cost about the same or even less. One prime candidate could be Miami-based Lennar Corp., which announced it would record a loss in the fourth quarter because of a $500 million one-time charge related to writing down so-called inventory loss.—Matthew Wurtzel See story from New York Magazine CategoriesComments
From: John,
KB Homes told me when I purchased my home in Southern Fields subdivision in Clermont FL that they would not sell to investors in my neighborhood to protect my homes value. Even their contract states this you cannot purchase unless you intend to live in the home. Yet it turns KB Homes works with investors all around the country and sold dozens of homes in my neighborhood to investors that were known investors and had purchased numerous KB Homes all over Orlando, Las Vegas and all over the country. One investor bragged that he owned over 100 KB Homes accross the country. These investors know all the KB managers by name. It was not long before we had trashy renters destroying our community, crime and all kinds of trouble. As soon as the market started spiralling downward these investors walked leaving dozens of homes sitting vacant and uncared for. As soon as this happened KB homes began dumping houses like hotcakes way below what we paid for them just a few months earlier. In some subdivisions KB was dumping homes several hundred thousand below what they sold for only a year earlier. KB Homes is nothing but a gang of crooks that lie, cheat and steal from hard working honest customers leaving with no equity, unsafe neighborhoods and turned our dream of home ownership into a freaking nightmare. I pray to God KB Homes goes belly up and the criminals running the company are put where they belong, Behind Bars.
Posted on:
April 25, 2008 11:25 AM
From: Stephanie Lynn,
KB Home is a great company. When they state that they dont sell to investors, it is a general attempt to create and foster a family neighborhood environment therefore holding off eventual turn-over to some investors over time which is natural. The problem is the section 8 guidelines from the government that allow run away losers from taking advantage of governement programs without looking into these renters backgrounds. KB Home is successful due to great management practices and good homes. KB is one of the largest builders in the country and therefore has a large target on their back as all the other large builders do. Yes there were shady lending practices EVERYWHERE when the market was hot. KB was not involved directly only country wide morgage (who are really terrible). I have owned two KB homes and have had nothing but good experiences with them. Be happy and dont pick on builders, people need the homes and if there is a problem thats why there is a 10 year warranty in place for all new home buyers, you wont find that in buying experienced "used" homes on the market.
Posted on:
August 5, 2008 9:54 AM
From: Eva Hafer,
My husband and I are seniors and kb Home has kept our earnest money and is ignoring us after misrepresenting the purchase. Will not even talk to us.
Posted on:
June 5, 2009 9:44 AM
Private capital video
Categories
Blog roll
Archives
| |||||||||||
As the air in the housing bubble deflates, the future of publicly-traded home builders are put in doubt. Some like Betty Homes Inc. and Kara Homes Inc. have already filed for bankruptcy. Nonetheless, a few market observers like Jim Cramer believe that the remaining players will become candidates for buyout firms.
|
|
|
|
|
Good Reddens,
KB Home is run on a culture of corruption. If they are not ripping off consumers and their stock holders they are ripping off their own employees. KB is natorious for tricking unsuspecting real estate agents into signing away their commissions. KB can fire someone for almost any reason and keep most or all of their commission and they have done it dozens of times. Its amazing how they keep getting away with it...I for one would never purchase even a resale KB Home after all the things I have seen them cover up...God knows what kind of corners they are cutting when they build a home.