Pulte Homes, Inc. (PHM)

Pulte Home has the system to deliver a home on time. From ground breaking to punch lis, Pulte completes a home in about 50 - 55 days. I know because I bought one and they gave me the date we were to close, and guess what? Pulte was dead on time! I have never dealt with a homebuilder that did that.

Centex is a company they bought because Pulte was running out of dirt to build homes on. Centex owns a lot of dirt but doesn't have the assembly line home building skills Pulte perfected, and it is a good marriage I feel will reward patient shareholders.

This is also a baby boomer play. Pulte is the best of breed in active adult living communities, and bought Del Webb. Pulte has needed some time to learn how to deal with the retirement crowd but they've figured it out.

When I bought my home I was annoyed the sales person kept telling me "no," everytime I asked if I could pay for a personal upgrade. However, looking at it from an owner's point of view, Pulte eliminates 3 days of waiting for buyers to choose amenities. The time saved gives Pulte the advantage of controlling the manufacturing and eliminating the variables that slows down cash coming in - buyers taking time to decide.

I am a Pulte homeowner and shareholder, willing to take the long road for Pulte and Centex to figure out the best way to merge their operations. I understand Centex owns a lot of dirt in areas like Arizona, New Mexico, and Pacific Northwest' all desire able destinations for aging baby boomers looking for a home in the country, with fellow aging hippies.

Pulte continues to win J.D. Powers owner satisfaction awards before the merger, and after. So, while the numbers are horrible the future appears bright. If you are a true contrarian who wants to own a company responsive to their home owners, Pulte is the builder for you.

While shopping in Northern, CA for a new construction home, my wife and I always gravitated to the Pulte floor plans. They are open, filled with light, and appear to be designed with the woman of the house in mind. We bought in Georgetown, TX, about 40 miles north of Austin. It is a great community and neighbors care about each other. This is the hippie commune that finally came together.

Buy Pulte while it is cheap. They will get their mojo back on track, once the transitional growing pains are worked out. Remember, we aren't getting any younger!