On the one hand you have to applaud the straight talk from the CEO of the largest home builder in the world. On the other hand, do you appreciate his use of the word suck? Here's the full quote: "I don't want to be too sophisticated here, but '07 is going to suck, all 12 months of the calendar year,"
He believes that builders will regain pricing power in 2008, but not before they try to unload the existing glut of houses on the market.
It's a little odd isn't it? It appears that his use of the word was planned. He set it up, used a little irony. Yet it's a crude word. Juvenile even. Even still, it may have conveyed his message more clearly and succinctly than any other way he could have put it.
He could have put it in corporate speak, "we anticipate continued negative price growth, as excess production and multiple entrants into the market has created a temporary situation of declining pricing power. We do not anticipate that we will regain said pricing power until 2008."
Or, "07 is going to suck."
Frankly, I prefer the latter.
Looking at the comments on CNBC's website, most people seem offended by that (rather mild by my standards) crude word "suck." The only thing that surprised me was his candor in saying just how bad 2007 was going to be.
In all, he has found the cheapest way to advertise for his company - his use of the word "suck" has been widely reported and with this message firmly attached: "2007 will be a down year; stick around for 2008 - we're going to kick some ass." (Which will be his next press conference soundbite).
Posted by: Charles | March 08, 2007 at 11:55 AM
Considering we're probably going to try and buy a house this year, I'm definitely offended by his use of the word :)
Posted by: Adam | March 08, 2007 at 12:49 PM
Au contraire, Adam. If you are planning on buying a house this year, you want home builder CEOs saying that this year is going to suck. Suck for them, good for you.
Posted by: lamoneyguy | March 08, 2007 at 02:05 PM
Why does his saying that the housing market will "suck" for people buying homes offend you in any way? It should be good news to you if you are going to be buying a house.
Posted by: Charles | March 08, 2007 at 02:19 PM
I think more importantly D.R. Horton is acknowledging something that many of his colleagues in the building industry have yet to acknowledge. And, coming from someone of his stature this should be a wake up call to those in the entire industry (including the mortgage industry) that there needs to be major changes in order to compensate for the reductions.
Posted by: JW Thornhill | March 09, 2007 at 02:44 AM
I like the straight shooting much prefer it to corporate speak. The CEO founded the company, and if he wants to say that 2007 is gonna suck, the more power to him. Corporate speak is usually double speak. I appreciate the candor, and can't say I'm offended by the word "suck" as it's pretty much commonly used for anyone under the age of 50.
Posted by: Dong | March 09, 2007 at 08:58 AM
Yeah, I'm with JW Thornhill on this one. "Suck" is an imprecise term, but at least he is avoiding the use of qualified wording, e.g. lying by putting the best "spin" on their results.
Best,
James
Posted by: James | March 10, 2007 at 10:45 AM
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