Friday, August 05, 2005

TOLL Brothers' Stock Down

The Toll Brothers' stock tanked today, falling 7%, which is quite significant.

Toll Brothers has made a fortune off of the housing bubble. The peak has been reached.


  1. When Toll Brothers stock breaks 49.00, it will have completed the same technical chart pattern that Sun Microsystems completed in October 2000 at 53.88. Sun closed today at 3.72.

  2. So glad I never bought SUN stock at near the peak. I did buy 15 shares at 5 bucks a share, and am still down!

  3. I live near a Toll Brothers development in NJ. When it went on sale in January, they were selling like hot cakes. Now the houses are finally going up, and it is astounding what kind of crap they are building. Pressoboard for a 1.3m$ house? 0.5 acre in an area where usual is about .7-1 acre. I hope Mr. Toll enjoys his 500m$ for food and fuel, because the poor schmucks who bought their houses will be stuck.

  4. NJdoc, check out consumer reports reading on shabby new construction homes:

    You don't hear a lot of talk about this now, but I still maintain this is the most insidious side of the housing bubble: People are scared to miss out the "stable, long term" investment of buying a home, but don't realize the homes they are buying are not built to last like homes of the past.

    Bad enough to have a bubble burst -- catastrophic to have one and be in a money pit that has limited resale value due to poor construction. I wish someone in the media would connect these dots..

  5. The media is not doing their job. They were late in exposing the housing bubble. Now, they do not feature adequate coverage of shoddy construction.