Homebuilders (BZH, PHM, LEN, KBH) Sell Assets And One May Need to File Bankruptcy

Bloomberg wrote an interesting article discussing all the homebuilders problems and fire sales to earn some quick revenue to pay off the homebuilders' high debt loads.

Recently, Mark A. Morgan, senior equity financial analyst with New York-based Rochdale Securities LLC, wrote this to clients on Sept. 27, ``We would not be surprised to see one or more of the larger homebuilders become insolvent if current pricing trends persist into 2008.''

Below are some of the comments from various CEOs of a few of the large homebuilders and what they are doing to get property moving off the books.

``Our company has intensified the focus on generating cash and keeping inventories low,'' Lennar (NYSE: LEN) Chief Executive Officer Stuart Miller said in a Sept. 25 conference call. ``We have rigorously pursued this objective by using incentives and price reductions to sell homes and to backfill cancellations.''

Beazer's (NYSE: BZH) chief executive Ian McCarthy said:``We're not focused on growth. We're very much focused on today and getting through this downturn.''

`We anticipate the pricing and margin pressure will continue until the inventory levels of unsold homes is back in balance with demand,'' KB Home (NYSE: KBH) Chief Executive Officer Jeffrey Mezger said on a conference call that day.

Pulte Homes (NYSE: PHM) ran a promotion last month in which the company offered to pay buyers' mortgages and taxes for six months if they bought homes at its developments in suburban Chicago.

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