PUTTING STOCK IN THE SPREAD Pulte Homes announced yesterday it will swallow up Dallas-based Centex for $1.3 billion in devalued stock. The new Pulte Homes, based in Michigan, will be the country’s largest homebuilder — with twice the revenue of its nearest competitor. Together, the two combined sprawling companies are building in 31 separate Houston-area developments, but only 3 of them are inside Beltway 8. All but 4 of the rest lie beyond Highway 6. [Houston Business Journal]
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That’s two big players in the Houston market.
Any layoffs locally from this?
Time to sell their stocks. With the kind of poor quality developments they are putting in Houston right now that have a 5 year shelf life, I expect them to be debt heavy with tons of inventory to unload. This is a failed business model
– bad economy = less sells
– good economy/high gas prices = less far-out sales