Robert Toll Needs a Helping Hand
Originally Published In the News June 4, 2008 1:25 AM
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Robert Toll and I go back a long way; I covered the firm in print over 15 years ago, writing research pieces that were widely disseminated.
He is one slick character, and after cashing in hundred of millions of dollars in Toll Brothers (TOL-NYSE) stock earlier this decade he is now asking for help:
“We believe Congress should jump-start demand for new homes with an initiative that will bring buyers off the sidelines and into the market, and thereby stop the downward spiral of home prices,” said Robert Toll, the company’s founder, chairman and chief executive.
“With a little motivation, the new home market could turn around, which would have a very positive impact on banks, bond prices and many other areas of the economy.”
He said the company favoured a short-term tax incentive for home buyers to create a sense of urgency.
Toll Brothers posted a loss of $93.7m, or 59 cents a share, compared with net income of $36.7m, or 22 cents, a year earlier. Analyst polled by Bloomberg had expected a loss of 90 cents a share. Income was boosted by $40m from a condemnation judgment.
The company said on May 13 that homebuilding revenue had dropped 30 per cent in to $818m. FT
Robert Toll actually has put his company in a much better position than many of his peers, but seeing a billionaire grovel for a handout gives me pause.
Toll urges action to lift US housing market
Financial Times
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