GLG News by Homebuilders Industry Accounting Experts

John BurnsPresidentJOHN BURNS REAL ESTATE CONSULTING, LLC

October 17, 2008

Analysis of:Consumers Pay Down Debt For First Time In 10 Years | www.marketwatch.com

Consumer borrowing has decreased for the first time in over 10 years as outstanding revolving and non-revolving credit fell in August. This may be an indication that Americans are pulling back on spending as the financial and housing markets continue to deteriorate.

John BurnsPresidentJOHN BURNS REAL ESTATE CONSULTING, LLC

Price Corrections Are Not As Bad As Reported

June 25, 2008

Analysis of:Home Prices Continue Sharp Descent | money.cnn.com

Home prices have indeed experienced significant corrections. However, some reports of price reductions may be exaggerated due to innacurate methodology.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

Continued Housing Difficulties

May 14, 2008

Analysis of:The Housing Crisis is Over | online.wsj.com

The housing bust is not over and trends continue to be negative. The only positive activity is that homebuilding stocks have gone up, without a good reason. We still have a ways to go to work through all this.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

Direct Expensing of Interest by Homebuilders

May 6, 2008

Analysis of:Hidden Mortgage Risks Abound in U.S. Home Market | www.bloomberg.com

Not capitalizing interest in inventory causes acceleration of losses and deterioration of book value.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

ARE HOMEBUILDING STOCK PRICE INCREASES PREMATURE?

April 24, 2008

Analysis of:Construction Companies Are Clamoring for Managers | online.wsj.com

Recently, stock prices of most public homebuilders have increased 20-30 percent. This despite no visible signs of improvement in the overall housing industry. It seems early in the cycle for these stock price upward movements, as it appears the housing market has not yet found bottom. Equity buyers at the present stock prices must be patient and have a mid- to long-term perspective on their investments. There may be several reasons for the recent price appreciation including: 1. Short sellers covering positions as hedge funds encounter increasing risks in other parts of their portfolios or simply decide to concentrate their efforts in another sector. 2. A perception the government enacted or proposed initiatives will cause significant improvement in homebuilding activities, including sales and financing of homes. 3. A belief the housing downturn is at or nearing bottom and this is the appropriate time to purchase homebuilder stocks.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

IMPAIRMENT REVERSALS – IMPACT ON COST OF GOODS SOLD

April 24, 2008

Analysis of:New-Homes Supply Builds; Durable Goods Orders Slide | online.wsj.com

Homebuilders have recorded large inventory impairments over the last couple of years. Most of these impairments have been for land and lots. As these previously impaired lots are built on and a completed home is delivered, the land component as a percentage of Cost of Goods Sold may decline significantly.

John BurnsPresidentJOHN BURNS REAL ESTATE CONSULTING, LLC

Economic Fundamentals Slipping Away

April 9, 2008

Analysis of:Are we or aren't we in a recession? | www.boston.com

Several national housing market indicators have been deteriorating at historically high rates in the last several months. The downward trend of these indicators points to a national recession.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

Analyzing Homebuilder Risks

March 3, 2008

Analysis of:Decline in Home Prices Accelerates | online.wsj.com

There are risks associated with homebuilding assets and contingent obligations. This article alerts the reader to areas of interest.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

Hidden Homebuilding Assets

March 3, 2008

Analysis of:Decline in Home Prices Accelerates | online.wsj.com

Homebuilding impairments and tax valuation reserves provide future accelerated income streams, when the recovery occurs.

David KellerFormer Chief Executive OfficerUNITED SUBCONTRACTORS, INC.

Accelerated Reductions in Book Value