Tuesday, April 11, 2006

Here comes another rally

This may be my last rally before I sell.

Here is th deal. If commodity prices are excallating out of control, yet the finished products are remaining flat. It is because the fear and reality of a slowing economy created by rising interests rates is driving the compatition into thinking in terms of cash flow versus profits. So if raising the interests rates have worked so far. Why not raise them more?


AP
D.R. Horton 2Q Orders Up 10 Percent
Tuesday April 11, 6:45 am ET
D.R. Horton Second-Quarter Home Orders Increase 10 Percent


FORT WORTH (AP) -- Home builder D.R. Horton Inc. said Tuesday that sales orders increased 10 percent in the second quarter, as the company saw growth across all regions except the Midwest.

The company said it logged orders of 15,771 homes valued at $4.4 billion, compared with 14,401 homes worth $4.1 billion, for the year-earlier period. Orders in the Southeast climbed 24 percent to 2,449 homes, Southwest orders expanded nearly 13 percent to 6,358 homes, Mid-Atlantic orders edged up 9 percent to 1,373, and orders in the West gained 8 percent. However, Midwest orders trailed 32 percent to 593 homes.

For the first six months of the fiscal year, orders rose 12 percent to 27,234 homes worth $7.5 billion.

"The company's double-digit sales momentum and our record sales backlog continue to position the company for another record year in fiscal year 2006," said Chairman Donald R. Horton.

D.R. Horton projects fiscal 2006 earnings-per-share of $5.25 to $5.35 on sales of more than $15.5 billion, and expects a profit of $1.05 to $1.10 per share in the second-quarter.

Wall Street has pegged the company to earn $5.38 per share on $16 billion in revenue for 2006, and $1.11 per share on revenue of $3.42 billion in the second quarter.

The company is slated to report its second-quarter results on April 18.

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