Beazer Homes (NYSE: BZH) just can't seem to catch a break. The stock actually went up when the company announced that it would have to restate earnings going back three years. With the uncertainty over its accounting seemingly out of the way, the Street breathed a sigh of relief.
But Beazer also found that employees had been violating the Department of Housing and Urban Development's regulations related to down payment assistance. Oh, and the company also recently fired its chief accounting officer for shredding documents.
Of course, concerns over internal controls and accounting are not the only thing hurting Beazer; there's also that little problem of the housing downturn. Beazer is reporting that during the last quarter, 68% of prospective home buyers canceled their orders, compared with 36% for the previous quarter.
Oh, and the company is facing lawsuits from home buyers accusing Beazer of unfair and deceptive sales practices.
Given the concerns about governance and management, combined with the concerns about the industry and business, shares of Beazer are probably too risky for most investors.
More bad news for Beazer Homes (BZH)
Posted Oct 12th 2007 11:22AM by Zac Bissonnette
Filed under: Law, Market matters, Housing
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Reader Comments (Page 1 of 1)
10-12-2007 @ 1:34PM
Les A. Errett said...
Cicra 2007-2008 Building & Developement in th USA has become a real challenge. Basically it has become a "Dog Eat Dog" enviroment perpetuated by Attorney's & the legal system. As Owner of Errett & Associates of California,I have decided to take one step back and focus more on the environmental aspects of building and associate with only those dedicated on saving our planet "Earth". It is our intent to have everyone moving in the same direction.
Entry by;
Les A. Errett
Errett & Associates
10-15-2007 @ 10:52AM
WhoseAskingU said...
The housing market is in the pits and hasn't bottomed out yet. So why single out Beazer?
12-15-2007 @ 1:12PM
Charlie said...
Bezaer is going down. When they final expose what they've done in their mortgage company, they're done. cooked. asta lavista, beazer