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I've been told that companies that are poised for long-term success operate based on a respect for the intelligence of their customers. In an interview on CNBC, Robert Toll, the CEO of leading homebuilder Toll Brothers (NYSE: TOL) demonstrated his lack of respect for consumers: "When we hold specials, which are not really specials, but just some reconfigured incentives to make it look as though something special is being given away . . ."That's right, the CEO of a leading homebuilder went on CNBC and announced that the company's heavily-marketed sales promotions are essentially total bull crap -- just "reconfigured incentives designed to make it look as though something special is being given away . . ." Why would he say that? With that one statement, Mr. Toll has told anyone who might have dealings with his company -- either as home buyers or as investors -- that the company's tactics aren't exactly straightforward and honest.
Just as a point of reference, this is the same guy who, back in November, essentially blamed the housing downturn on the pessimistic media. Oh, and by the way, this is the company that couldn't even get the chairman's daughter to close on a deal she'd agreed to.
So, if you're intrigued by an ad for a good deal on Toll Brothers homes, remember: it's just reconfigured incentives designed to make it look as though something special is being given away. The pounding that the market has given the stock over the past few years may be something similar.
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Reader Comments (Page 1 of 1)
8-14-2008 @ 1:15PM
william lindblad said...
I am surprised that he was open about the underhanded, but that's not all of it. Another of the tactics was (may still be) to get relatives of employees to come in and sign as buyers when these "specials" are in place. It makes for a lot of "sold" homes. None of these ever go to closing, but they get counted anyway. It is all a matter of data and if you care to believe what the Nat'l assoc. of Realtors spills to the market and press - you are easily fooled
This goes on all the time and the assoc. is steadfast in keeping this kind of reporting alive. I think it is close to fraud and should stop. Sold property should get counted as "sold" only if, and when it closes.
8-17-2008 @ 9:06PM
repubSS said...
Roland is full of it! Exxon can't pay 4 grand per second in taxes if it makes 1400 per second. DUH!! Maybe 4 grand per hour! If a company were losing 2600 dollars per second it would be bankrupt in weeks. Typical righ wing smear tactics. Like when fox noise or fixxed news put incorrect info on their screen. remember when they post REP Foley the pervert was a democrat when he was actually republican't!
8-18-2008 @ 8:44AM
c c said...
I listened to the conference call last week and I wonder why none of the analysts ask Bob about the recent sale of a percentage of the company to abu dhabi? No one ever talks about it - the employees don't even know - does Bob plan on selling more of the company to abu dhabi? the shareholders have a right to know.
Bob was also asked if the cancellation rate was down because sales were down - the analysts are not asking if any of the new hi-rise condo buildings had closed during that particular quarter - the answer for this last quarter is probably "no" - the 2nd maxwell place building in Hoboken should start to close in September - this will be something to watch - will be interesting to see what the cancellation rate is here as sales started approx. 2 yrs ago
Finally, when asking any questions about TBI mortgage - the 1st question should ask what TBI's capture rate is -