Toll Brothers posts loss, CEO notes 'ceaseless' recession talk

How soon the idiot forgets that he is the one that said the housing bubble needs to burst.

He is the one that started the downfall of the housing industry. I remember when he made those stupid, stupid remarks all the senior people in TBI could not believe what that jackass had just said.

KARMA

A nice article.

Should anyone be surprised that two bright spots for Toll Bros are Naples, FL and Washington, DC?
Many Naples residents can afford a luxury home even in downturns in the economy. With all of the tax dollars flowing into Washington, DC, why would anybody be surprised that the suburban DC residents can also afford Toll Bros homes.

The housing bubble did need to burst and the everpresent talk of a looming recession do make most people think twice before assuming big mortgage payments to buy a luxury home.

There is no need to call anyone an idiot for speaking the truth. Only a kind of a jackass would do so.

Aww we have another Toll Lover

Your in the wrong place pal

Bob Toll is an ASSHOLE, plain and simple. He is also an IDIOT. Me a jackass, come on is that the best you can do. LOL

Did the bubble need to burst, yes. i could not agree with you more. Prices were and still are way out of line. The reason Bob oll is an idiot is because of the way he handled the situation.

Even you should be able to see that!

Toll is an affluent and successful homebuilder.

Most builders, even the most successful of them, are just not really good with words. These are stressful times for the homebuilders, and I think it is better not to be as critical as you are here.

A Toll lover?
No, I do not care about Toll Bros. one way or the other.

I am bothered that so many builders are obviously hiring lots of undocumented workers. I do not know if Toll Bros. does this also, but my guess is that they do.

I bought some Meritage stock last year, hoping that some day their stock price would go back up.
They purchased a large tract of land near Phoenix last year in a joint deal with Toll Bros.--- I do not know if they still hold this land.

People toss about the words idiot and moron here on these comment boards, and therefore you might be right about me being in the wrong place. These demeaning words sound somewhat offensive to me.

But it is the truth.

One of the reasons I say this is because TBI bases its purchasing of land on what it will bring in the future, based on TODAY"S sales.

Now think about that for a second. If today, the market is selling and people are standing in lines to get a lottery ticket to buy a way over priced house, for investment. How long do you think those lines will last?

What I mean is TBI will buy land that is seriously overpriced if they believe it produce income on TODAYS sales.

They do not take into consideration the time it will take to entitle the land, develop it and then get the product built. It is just stupid. When the market started to fall TBI was still buying land based on sales that were non existent. They refused to believe the lines of investors could possibly every stop.

Now, Truthfully you sound like a prudent person. Would you spend three hundred million on a piece of land that you could only use 35-40% of. The balance of the land is in wetlands and protected.(FYI- I like the protected part) Now figure that you are buying this land based on 2004 selling pace and you are in late 2006. What do you do? You are now upside down over 60% of the value of the land. A prudent person would not do that, TBI did.

The deal was called Sports Park in Florida. Yes this is a real example. They lost some serious money on that deal, simply because they bought it wrong. The entire land area was used as buildable. It was idiotic, plain and simple.

The real problem is this is the way they buy all their land. It just is not prudent business.

As for your Meritage stock, don't sell it. They have a plan that I really like with all these communities they are and have been developing. You will do well with that investment if you stay the coarse. They have communities everywhere. They have a good plan!

Yes I use Idiot and Moron in referring to Bob Toll. What you may not know is I know him personally, and the company from the inside out as an employee (no longer) and as an investor. The stock has dropped over 50% in the last two years and 35% of that was in the last year alone. However if you can buy TBI at @15.00 a share it is a good investment. With $950M in cash and $2.3B in available credit lines I think they will survive. I do not like them as a company, but as an investment that is another story. I would NEVER pay more than $20.00 a share though.

I do believe that bilders everywhere are suffering. However I also believe that the smaller independant builders that have made a name for themselves and provide a great product will be OK. It is hard times like these that weed out the people that have no business in the business.

cheers

sorry I missed spell check.

:)

Yes the TOLL stock haa fallen with all the others.
I bought my Meritage stock after the falling stock prices, and I already have a nice gain on it, but you are right about not selling it. I plan to hold it for the long term.

I think I read somewhere that the CEO of Toll Bros has been one of the biggest inside sellers of any CEO's in the country.

I used to work for a contractor when I was in college, and when the building business dried up and crews were laid off, things got kind of grim.

I went to handle a bid letting for a hospital expansion, and after they announced the winner, everyone around the table was relieved that they did not win because they were bidding at levels that would have lost money just to keep their remaining crews in work.

I do not understand why the government does not pump some money into building down on the Gulf Coast where everything was devastated by Katrina.
They have pumped money into some projects down there, but it seems like nothing is getting done in New Orleans outside of the people with lots of initiative. Builders could definitely do some building in New Orleans and Biloxi.

If you are bitter over Toll Bros., then this is an excellent forum to let off steam.

When I read your first sentence I had to lol, and lets be real does he not say that he builds luxury homes, is this not suppose to be for mover uppers and people that have money and good credit, so why would his company being do so bad.

Toll SUCKS wrote:

How soon the idiot forgets that he is the one that said the housing bubble needs to burst.
He is the one that started the downfall of the housing industry. I remember when he made those stupid, stupid remarks all the senior people in TBI could not believe what that jackass had just said.
KARMA

lol, u tell him, or her

Toll SUCKS wrote:

Aww we have another Toll Lover
Your in the wrong place pal
Bob Toll is an ASSHOLE, plain and simple. He is also an IDIOT. Me a jackass, come on is that the best you can do. LOL
Did the bubble need to burst, yes. i could not agree with you more. Prices were and still are way out of line. The reason Bob oll is an idiot is because of the way he handled the situation.
Even you should be able to see that!

Bitter, well maybe. Letting off steam, I don't think so. I just know how they are run from the inside out and they do not care about the employees or the clients. They build as cheap as they can and market the "luxury" very heavily. It is false advertisement and it is wrong.

You read correctly that Bob Toll is one of the largest selling CEO' in any American company. See the attached link.
http://money.cnn.com/quote/insiders/insiders....

If you do a little digging on this page you will see he has sold over $500,000,000.00 in shares more than four times in the 2005-2006 years. That is per sale not total accumulative. I believe it lasted over a period of about 14 months. When he needed more stock he exercised some more options. It was a massive take, from the company for sure.

As for Katrina, I could not agree with you more. The politicians are too busy filling their own pockets to worry about those affected by Katrina. It is a pity for sure. I have friends in that region working. They say the biggest problem is they cannot locate the owners of the property and that is the main reason a lot of the homes still set un-repaired. When they do get them fixed the owners can no longer qualify for the mortgages for their own homes. It is still a disaster, but a different type.

laughing as toll crumbles wrote:

lol, u tell him, or her
<quoted text>

It was just a misunderstanding...I think.

:)

http://money.cnn.com/quote/insiders/insiders....

Have a peek at some of the massive selloffs

remind you this is partial not all inclusive.

Do the math on the #'s

I checked out your links, and i have to say what can you do with all that money in a life time that they are making, I would be given it away, to the needy, my spouse would have a heart attack but I would still be doing it, I always say you need to give back. Espically to the children and the elderly, the children are our future and the elderly were our past, and some of them had fought for our freedom, they deserve the respect.

Yes Ma'am, I agree.

We only get ONE CHANCE to raise our children, if we screw that up, no matter what we accomplish in life we will have failed.

why would you think that i am a Ma'am, lol, and I agree with you only one chance and hopefully we do it right

It is respect.

Has nothing to do with age! I'll bet we are not that far apart in years. LOL.

no i meant man or woman and the respect i can understand brought up with the same manerizime, how do you know how old I am, i may be older then you think, or someone at toll told you who i am,lol

No LOL I have no idea who you really are. I suspect your a lady based on your comments "speaking of your husband" several times.

The age thing is a guess. I have no idea really.

LOL

:)

did you not notice that i live in nj, lol i could have a common law relationship, lol, no put i am a girl, lady or woman

lol

I'm a Toll buyer, and unlike the sophomoric exchange going on between 'laughing' and 'Toll Sucks' here, I'd like to add something serious to the discussion:

The mortgage meltdown is affecting Toll because despite the moniker of 'luxury homes', they sell condos, townhomes, and high-priced starter homes------all of these kinds of homes appeal to people who may not be able to get a mortgage without selling their prior home or without putting down a sizeable down payment. That aside, in my Toll development, most people are very upset with the delays in their house construction, with snafus in the construction that should have been easily avoided, with poor QA checks on the construction, and with cheap finishes and sloppy craftmanship. I've gotten to the point that I simply cannot recommend to any of my friend or acquaintances to buy a Toll home, because I fear they'll have the 2 year nightmare that we've had.(This spans many people and 3 different regions where Toll is building.) Basically, with Toll, you think you'll get a Lexus (that's what they advertise), but you actually get a Mazda for the price of a lexus. The sloppiness of the craftmanship within the home is so disappointing, that one simply wants to walk away from the home and never go back.

Toll's failure to build loyalty within it's clientele by delivering a quality product is finally catching up with the company. Many of us could afford to buy second homes or future Toll homes, but will never do that because of our experiences. So Toll is losing out on developing a loyal and affluent base of repeat home buyers, and all it has left are people who want but can't afford a 'luxury' starter home. When the market is good, that apparently works. When the market is bad, those weaknesses in the clentele base start showing and chip away at the soundness of the company.