28/08/2014 07:27:57 Free Membership Login

The Zacks Analyst Blog Highlights: D.R. Horton, Berkshire Hathaway, Masco, USG and PPG Industries - Press Releases

Date : 12/27/2011 @ 3:30AM
Source : Zacks
Stock : Berkshire Hathaway Inc. CL B (BRK.B)
Quote : 136.52  0.27 (0.20%) @ 7:11AM
Berkshire Hath B share price Chart

The Zacks Analyst Blog Highlights: D.R. Horton, Berkshire Hathaway, Masco, USG and PPG Industries - Press Releases

For Immediate Release

Chicago, IL – December 27, 2011 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include D.R. Horton (DHI), Berkshire Hathaway (BRK.B), Masco (MAS), USG (USG) and PPG Industries (PPG).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

New Home Sales Up Slightly

New Home Sales rose by 1.6% in November from October, to a rate of 315,000. Relative to a year ago, sales are up 9.8%. While the monthly increase is more than welcome, it is still a very dismal rate of new home sales.

There was a upward revision to the October numbers of 3,000 from 310,000. The November level was also somewhat better than the expected rate of 315,000. Regardless of the changes at the edges, this is still a very bad level. The 19 lowest months on record (back to 1963) for new home sales have all been in the last 19 months.

New home sales have only exceeded the 400,000 level three times since September 2008 when the financial markets collapsed. The most recent time was in April 2010, as sales were inflated by the rush to get in under the wire and collect the homebuyer tax credit. Sales collapsed after that.

Relative to the peak of the housing bubble (7/05, 1.389 million), new home sales are down 77.3%. Prior to September 2008, there had only been 20 months in which new home sales were below the 400,000 level, with the most recent being in 1982 (which was a time of a very nasty recession brought on by sky-high interest rates inflicted by the Fed to break the back of inflation). 

New home sales fall sharply before all recessions (with the exception of the dot.com bust, which caused recession of 2001) and then start to increase sharply in the middle of, or towards the end of, the recession. That clearly is not happening this time around. New home sales are vital to the overall economy. If new homes are not selling, then home builders have no reason to build more of them. After all, that is very expensive inventory to sit on.

Unlike used home sales, each new home built creates a huge amount of economic activity. Not only are low new home sales bad for the big homebuilders like D.R. Horton (DHI), but also for all the companies that make the products and supplies that go into making a new house. They range from Berkshire Hathaway (BRK.B) for bricks, roofing materials and insulation to Masco (MAS) for plumbing fixtures and cabinets to USG (USG) for wallboard to PPG Industries (PPG) for glass and paint.

In terms of employment, it is not just all the roofers and framers that lose jobs due to weak new home sales, but employees at all the firms that make the stuff that goes into making a new home. Of course, if those employees are out of work, they are not spending on other goods and services, dragging down a host of seemingly unrelated businesses.

Not that the direct impact of construction jobs should be underestimated. Since the recession started, 34% jobs lost have come from the construction industry.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com


 
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
 
D R HORTON INC (DHI): Free Stock Analysis Report
 
MASCO (MAS): Free Stock Analysis Report
 
PPG INDS INC (PPG): Free Stock Analysis Report
 
USG CORP (USG): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Berkshire Hath B (NYSE:BRK.B)
Historical Stock Chart

1 Year : From Aug 2013 to Aug 2014

Click Here for more Berkshire Hath B Charts.

Berkshire Hath B (NYSE:BRK.B)
Intraday Stock Chart

Today : Thursday 28 August 2014

Click Here for more Berkshire Hath B Charts.


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 140828 07:27