As an accountant, one of the warning signs you heed when it comes to a company in extremis is when they “draw (down) the revolvers”.
In Beazer’s case, this might be a sign that the jig is up.
Several of the other key players, such as Lennar, Pulte, KB, Horton, Toll, etc have also been bleeding pretty badly when it comes to quarterly losses. I think Beazer is in a more financially precarious position and I think another significant reverse might be the end – the end being BK, of course.
If that happens, it will be interesting to see what happens to other homebuilders as regards market reaction and stock price(s).
