RE:PHM Once Again Overhyped, Under-Delivered.
Let's take a look at what the market thought of PHM's release of their Quarterly results this week: 1) Wednesday February 10: PHM sends out a press release in which they state "The financials will demonstrate that revenues for Q1 increased more than 294% from the same quarter a year ago and 36% from the previous quarter". No mention of Net Earnings or EPS or other bottom line figures. PHM says they will release the results the very next day and if you want to participate in the conference call, you need to submit your request by 5pm. In spite of this one-day notice of the earnings release and conference call announcement and no bottom line numbers, investors seem thrilled and the stock jumps over 11%. 2) Thursday February 11: The financial statement are released. They show no actual bottom line profitability. Further, I cannot find a press release detailing the earnings results.....I have not seen another company fail to produce a press release of the actual earnings results on the day they were released....seems they just want investors to look at the big shiny object of the top line revenue increase and ignore the rest. Stock drops over 7%. 3) Friday February 12: Stock drops another 6%+, resulting in a share price that, last time I checked, is lower ($0.415) than the price it closed at the day before the big "Top Line Revenue" press release ($0.43).............It seems to me that Mr. Hoyt is engaging in trying to spin the results as positively as he can, and the market is seeing through it......Until these guys finish putting this jigsaw puzzle of acquisitions together and make up for all the shares they have issued (and may continue to issue...?), the market may remain skeptical of the long-term profitability of this company......It may work in the end, it just seems that PHM is playing games in the near-term to try and make the company look stronger than in reality.......