October 28, 2004
HomebuilderStocks.com – Exclusive Industry Interview: John F. Kasprzak, Jr., Managing Director, BB&T Capital Markets
POINT ROBERTS, WA. October 28, 2004 – www.HomebuilderStocks.com, a global investment news and research portal covering the homebuilder sector, is pleased to feature an exclusive interview with John F. Kasprzak, Jr., Managing Director, BB&T Capital Markets, who discusses the peril that investors face when basing investing decisions on a forecast of interest rates.
HomebuilderStocks.com provides investors with news, information, public company profiles, and developing trends in the homebuilder sector. The site does not make stock recommendations but offers a unique free information portal for investors to explore news, articles, and recent research. The site is currently compensated by featured company International Barrier Technology Inc. (IBTGF: OTCBB; IBH: TSXV).
Our current list of public companies in the sector includes: Beazer Homes USA, Inc., Brookfield Homes, Centex, Inc., Home Depot, Homestore, Inc., KB Home, Lennar Corporation, Lowe’s, Monterey Homes, Orleans Homebuilders, Inc., Pulte Homes and numerous others. For the complete list, click here: http://www.HomebuilderStocks.com/Companies/HomebuilderStocks/HomebuilderStockList.asp
HomebuilderStocks.com: Do you anticipate rising interest rates to affect the housing sector?
This is an interesting question because the consensus view has been that interest rates would rise this year, perhaps by a lot, and that housing would slow, perhaps by a lot. This has not occurred and underscores the peril that investors face when basing investing decisions, particularly on homebuilding stocks, on a forecast of interest rates. We believe interest rates would have to rise by 200-300 basis points to alter the housing market but the market would adjust. Housing demand is fundamentally driven by population growth and demographic trends, not interest rates, and these trends are unmistakably positive in our view.
Is there any grouping within the sector that will outperform the rest?
While we have been generally bullish on the housing sector and homebuilding stocks due to their attractive valuations, we have liked the luxury sector quite a bit. Demographic trends really dovetail nicely with rising demand in the luxury sector. The baby boom generation is getting older and earning more money, and their is a huge intergenerational transfer of wealth occurring that bodes well for demand in the luxury area.
ABOUT JOHN KASPRZAK:
John F. Kasprzak, Jr., managing director, BB&T Capital Markets, joined Equity Research in 1997. His industry focus includes companies engaged in building materials and home building. Kasprzak was named in the 2000 Wall Street Journal Best on the Street Analyst Survey (including number one in estimate accuracy) as well as the inaugural Street.com All-Star Analyst Survey. He has also been included in the Reuters Survey of Mid to Smaller Company Investment Research on three separate occasions.
BB&T Capital Markets has received compensation for investment banking services from WCI Communities, Inc. in the last 12 months.
BB&T Capital Markets expects to receive or intends to seek compensation for investment banking services from WCI Communities, Inc. in the next three months. An affiliate of BB&T Capital Markets received compensation from WCI Communities, Inc. for products or services other than investment banking services during the past 12 months.
Full Interview: www.HomebuilderStocks.com/Companies/HomebuilderStocks/Articles/BB&T_Capital_Markets.asp
Featured Company: International Barrier Technology Inc. (IBTGF: OTCBB; IBH: TSXV) develops, manufactures, and markets proprietary fire resistant building materials branded as Blazeguard. Barrier’s award-winning Blazeguard wood panels use a patented, non-toxic, non-combustible coating with an extraordinary capability: it releases water in the heat of fire. The panels exceed “model” building code requirements in every targeted fire test and application, and are unique in combining properties that increase panel strength and minimize environmental and human impact. Blazeguard provides Barrier’s customers a premium material choice meeting an increasingly challenging combination of requirements in residential and commercial building construction. Blazeguard customers include four of the five top homebuilders! www.intlbarrier.com
Nothing on the site should be construed as an offer or solicitation to buy or sell any specific products or securities. All investments involve risk. Past performance does not guarantee future results. Investigate before you invest. Although we attempt to research thoroughly, there are no guarantees in accuracy. We encourage all investors to use our research as a resource only, but to further their own research on all featured companies, industry research and articles featured.
HomebuilderStocks.com/ECON is compensated by Featured Company IBH via a fee of $8000 and stock options of up to 110,000 shares exercisable at $0.80 and currently has a remainder of 25,000 options at 0.25 not exercised.
SOURCE: ECON Investor Relations Inc., which owns the domain www.HomebuilderStocks.com.
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About the author:
HomebuilderStocks.com provides investors with news, information, public company profiles, and developing trends in the homebuilder sector. The site does not make stock recommendations but offers a unique free information portal for investors to explore news, articles, and recent research.