Comments for 0 at http://boombustblog.com , comment 1 to 2 out of 2 comments http://boombustblog.com Thu, 08 Jan 2009 11:24:07 +0100 FeedCreator 1.7.2 http://boombustblog.com/index.php/20080206148/Centex-s-mortgage-originations-are-coming-home-to-roost.html#comment-280 [b]"There's too much existing home inventory on the market to prevent any sort of significant increase in the pace of housing starts,"...[/b] This sentence does not make sense; do you have a link for it? CTX seems like a bankruptcy risk, if not in 2008 then in 2009. I'd be interested in your view on SPF, since bankruptcy rumors enveloped them last year but the market had a positive reaction to the most recent report; in fact, SPF shares [i]have more than tripled[/i] off lows at this point. You have a great blog Reggie. - eh Wed, 06 Feb 2008 08:00:34 +0100 http://boombustblog.com/index.php/20080206148/Centex-s-mortgage-originations-are-coming-home-to-roost.html#comment-279 I see that the mortgage assets look like they have not been marked to market. In addition, I am always skeptical about the realism of the asset mark downs since there is no uniform way to go about it - it is left up to management's discretion. Despite all of this they have taken a $14.32 loss per share, with a share price currently around $27, but it just came down from $30 a few days ago. They have 61,872 in cash, that is trying to service Loss on Joint Ventures and Unconsolidated Subsidiaries amounted to $125,333,000. Provision for Losses on Mortgage Loans Held for Investment and Construction Loans was $82,775,000 (like I pointed out in the post above). The few assets they did get to sell were underwater: Gain on Sale of Assets - negative $16,966,000 Increase in Receivables: $173,062,000 (bad debt on the books) Increase in Accounts Payable and Accrued Liabilities: $449,651,000 JV's are still soaking up valuable cash - Investment in and Advances to Joint Ventures: $160,877,000 Centex is issuing $30,000,000 more in debt to financial services than it is paying down, most likely in an attempt to get a handle on all of those bad mortgages that it can't get rid of. Capitalized Interest Charged to Home Building’s Costs and Expenses: $69,854,000. This quarterly interest charge is more than their cash on hand. Cash Paid for Interest: $65,318,000 Mortgage Loans Receivable, net: $747,757,000 these guys even funded construction loans themselves, which is a disaster: As of December 31, 2007, Financial Services is committed, under existing construction loan agreements, to fund $74.4 million in addition to the construction loan balance shown above. Financial Services has ceased origination of new construction loans; however, it will fulfill its existing funding commitments. I'll continue this later... - Reggie Middleton Wed, 06 Feb 2008 07:51:59 +0100