A lead-in from the Food Network show ?Chopped? seems appropriate: 308 companies, 744 portfolio managers and analysts, 30 minutes to tell their story.
Some will impress, and some will be chopped from consideration.
Over three days there were 39 half-hour time slots. And, with eight simultaneous presentations, in eight different rooms, it was an experience in death by PowerPoint. Three of us planned a coordinated effort to garner what information we could.
Following are a few random gleanings from the housing sector:
A startling contrast was evident by the presentations of two different but sizeable housing providers. One is a name virtually everyone has heard, with operations in 50 markets (call it company T). Revenues are in the $2 billion ballpark.
Housing ?company T? has lost money in two of the last four quarters, and management openly expressed concern about consumer confidence and an economic relapse. Yet, they claim to have enough land now, and continue to buy more for future use.
In stark contrast is ?company O?. This housing company operates in the U.S., Canada, and Australia. I?d not heard of them before as they are not classified as a housing company. Their specialty is quickly constructed housing in the oil patches worldwide.
The concept is working, as 2012 revenues are projected to exceed $4 billion. They have made at least $2/share in each of the last 8 years. Revenues increased at least 40 percent, and earnings jumped even more in the last four quarters.
As management stated, they follow the drilling rigs. One difficulty they do have is lodging for their construction site workers. Don?t laugh; they use Winnebagos or other motor homes to solve that problem.
One company stuck in the old way of doing business and battling to break even, while another goes where the need exists. Yet, the room was SRO for the ?company T? presentation and about half full for that of ?company O.? Go figure!
At dinner I saw an attractive young female with a Spartan Marching Band sweatshirt. She graduates this term from Michigan State with a degree in music education, and will soon be a high school band director in Wyoming ? it was her best offer. She?s going where the need exists.
No comments:
Post a Comment