http://www.newhomessection.com/blog/meritage-homes-reports-first-quarter-loss/2008/05/01/ New Home and Home Builder Information Fri, 20 Nov 2009 14:29:19 -0800 http://wordpress.org/?v=2.8.6 hourly 1 http://www.newhomessection.com/blog/meritage-homes-reports-first-quarter-loss/2008/05/01/comment-page-1/#comment-782 John Pohly Wed, 07 May 2008 03:03:34 +0000 http://newhomessection.com/blog/?p=109#comment-782 As a former employee of Meritage Homes, I can say that I am not surprised. I think the builders that will be hit the worst will be the same ones that benefited the most by the hot market. I expect that the builders that grew externally by acquiring other builders in the hot market will be sorry that they grew so quickly on paper. The more conservative builders, like Ryland Homes, that grew internally since the 1980's will survive the market slowdown. Leverage can be great in a bull market but also cut you in half when the market goes in the opposite direction. As a former employee of Meritage Homes, I can say that I am not surprised. I think the builders that will be hit the worst will be the same ones that benefited the most by the hot market. I expect that the builders that grew externally by acquiring other builders in the hot market will be sorry that they grew so quickly on paper. The more conservative builders, like Ryland Homes, that grew internally since the 1980’s will survive the market slowdown. Leverage can be great in a bull market but also cut you in half when the market goes in the opposite direction.

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