US Home Builders Must Differentiate Their Offerings to Survive Worst Market Downturn in Last 20 Years.
Residential construction spending decreased for a record 21st consecutive month during November (US Commerce Department). And even the big dogs are starting to feel the pinch.Toll Brothers Inc. (NYSE:TOL), the largest luxury home builder in the country posted its first quarterly loss in more than twenty years during December. In addition, other industry leaders including M/I Homes Inc. (NYSE:MHO) and KB Homes (NYSE:KBH) are faced with uncertainty and a world of tremendous challenge heading into 2008.
With all of these companies trading down significantly over the past 12 months, it appears that the market has astutely priced this uncertainty into their shares. But is what we’re seeing a bottom? This is highly unlikely for many, unless of course some of these builders chose to differentiate themselves in some new and innovative manner.
HOME DIRECTOR, INC. (OTC BB: HMDO) presents one opportunity for home builders both to differentiate themselves and make a few extra bucks in a down market. An IBM spin-off, HMDO is an emerging home networking and entertainment solutions provider. In a challenging market, developers can leverage the Fiber-To-The-Home model to increase their return on investment as well as to differentiate their homes to the consumers.
Check out the company: http://www.homedirector.com/index.php5.
I think that they’re onto something big here.
Labels: HMDO, Home Builders, Home Director Inc, Home Networking, Housing Market, Residential Housing
posted by "Staff" at
1:25 PM
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