Monday, March 3, 2008

Beazer Homes Fights Bankruptcy Rumors

Beazer Homes Continues to Fight Off Bankruptcy Rumors

Beazer Homes USA Inc. (BZH) continues to be hammered by. Bankruptcy Rumors. Recent quarterly results has helped to fuel the bankruptcy rumors.

Beazer posted a loss of $123.01 million, or $3.20 per share, which included a big pre-tax charge to write down inventory, compared to a year ago when it earned $102.62 million, or $2.37 per share.

Adding to the fuel is the fact that Beazer received a subpoena from the U.S. Attorney's office and is under investigation by the Securities and Exchange Commission. The company responded by saying that the rumors were "scurrilous and unfounded." The $500 million revolving credit facility has not helped the share price which just closed today at 6.90. The current projects in development by Beazer in the Hudson Valley have not had banner sales. The Price Point for end sales still need to come down.

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