Hovnanian Closings Delayed and 1 Stock that Has Hit 52-Week Highs
First Republic Bank (NYSE:FRC) reported that First Republic Investment Management will acquire substantially all of the assets of Luminous Capital, and the latter will become part of a wholly-owned subsidiary of the Bank. The six partners of the company will sign long-term employment agreements as part of the transaction, which should close by December 31st, subject to the usual conditions. First Republic anticipates that the transaction will be modestly accretive to earnings next year. Financial terms were not released, other than it was a cash purchase. First Republic shares closed down 1.48 percent on the day at $34.50, having been traded in a 52-week range of $27.12 to $34.89.
Hovnanian Enterprises (NYSE:HOV) has released a statement: “As Sandy made landfall in New Jersey, with hurricane-force winds, heavy rains and unprecedented power outages, many of our homebuyers were unable to close on their homes as previously scheduled during the beginning of this week. Although these homes were completed and ready for delivery to our customers, overcoming the challenges related to power and phone outages, obtaining insurance, home re-inspections related to New Jersey being declared a federal disaster zone and the coordination with customers and their representatives to set up revised closing times were insurmountable. As a result, between 50 to 75 homes that were scheduled to be closed during the first three days of this week have now been delayed and will end up closing in the Company’s first quarter of fiscal 2013. While the quarter would have been even better if not for the effects Hurricane Sandy had on delaying some closings at the very end of the quarter, our associates across the country worked tirelessly in order to get homes delivered and successfully close out the fiscal year. We are still assessing the damages to our communities in these areas but at this time, we anticipate that the majority of the financial impact of damages to be covered by insurance. Since we expect these 50 to 75 homes to be delivered later in fiscal 2013 and our sales backlog remains very strong, we do not expect any long term impact as a result of Hurricane Sandy.” Shares closed up 4.89 percent on the day at $4.72, and have traded in a 52-week range of $1.20 to $4.70.
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