Agreed Wubbe, faster turnover should reduce real estate inventory and help increase ROIC. Interesting that Vinte, which focuses on homes in the middle category, has a much better turnover too, so the company could improve without switching strategy to develop more affordable housing and reduce middle and residential.
I get the feeling that management likes the large land holdings. This might work out if the value of the land increases significantly, but that feels more like speculation to me. Not saying it is a bad bet. Not sure I want to be involved though at this point.
If management manages to bring down the land holdings by increasing turnover this stock could rip up much higher though.
Like your approach on how to discount the real estate inventory. Well done.
Given this approach it is intuitive what management should do to increase the value of the company.
(Lower real estate inventory & faster turnover)
Agreed Wubbe, faster turnover should reduce real estate inventory and help increase ROIC. Interesting that Vinte, which focuses on homes in the middle category, has a much better turnover too, so the company could improve without switching strategy to develop more affordable housing and reduce middle and residential.
I get the feeling that management likes the large land holdings. This might work out if the value of the land increases significantly, but that feels more like speculation to me. Not saying it is a bad bet. Not sure I want to be involved though at this point.
If management manages to bring down the land holdings by increasing turnover this stock could rip up much higher though.