RE:What will PHM do now?PHM had two problems. One was Dalsin and his hype who masked the true growth of PHM by buying companies to increase revenue without considering costs and margins. This revenue growth and lies about margins and bottom line profit saying PHM would even pay a dividend drove the share price to double what it was actually worth at the time had the truth been known. In doing all this he also conned Casey Hoyt and his team into joining the company. This is the only thing that will now save us as Casey and his team are experienced enough to fix the problems and restore a solid path to growth.
The second problem was the cuts by the government which at some point will have to stop and even reverse in some cases if hospital costs rise as these companies adjust and stop providing services on low margin products that the patients still need and will have to go to the hospitals instead increasing costs again. So PHM is now on a path to stay ahead of the government on this and move to where the best margins and profits are and maybe back again if the government backs off on any. The demand is not going to go away and only grow but companies like PHM have to adjust to the new reality as Casey says in the release.
So the problems are being dealt with and we are in the period where the corrections have not shown to bare fruit yet though they will. It will take a quarter or two to fully adjust to the new reality and be ahead of the government and industry changes. They can and will do it I feel as they are quite blunt about what needs to be done. So I will hold and then buy more when the quarter results show their efforts have paid off in a quarter or so. N3