LOI's - A Buyers Market? Cash is King:With market values tumbling and a palpable fear in the market as the markets have their worst week in four years could PHM now get better terms for its cash acquisitions? Cash has proven king in the last month.
As PHM's Hoyt has been growing his list of potential acquistion targets thereby placing them in increasing competition with eachother helping PHM secure the best terms, the market is also cooperating and may be putting fear in some to take a cash deal. Cash has been king the last month and PHM has a lot of cash and unused debt capacity to execute deals. We may increasingly be in a buyers market given the market turmoil and political risk given the election cycle as Trump leads the Republicans threatening potential big changes and Jeb talks about phasing out Medicare.
At least Hoyt appears deliberative and methodical in his moves and is not impulsively trying to close deals. He's taken time to get to know them and see how they can fit the PHM puzzle. Let the best deals come to him. Given he owns 6.6% of PHM near $1.50 per share he is incentivised to secure the best deal and make the cash and debt capacity go the longest.