MONOPOLY I, LLC initiates a position in D.R. Horton, Inc (DHI).

D.R. Horton, Inc. is one of the largest homebuilding companies in the United States. They construct and sell high quality homes through their operating divisions in 27 states and 75 metropolitan markets of the United States, primarily under the name of D.R. Horton, America’s Builder.

Exerts from DR Horton (DHI), Q2 12 Earnings Call, April 23, 2012 (CEO: Donald J. Tomnitz)
• Net sales orders were up 55% sequentially from the December quarter and up 19% from our second quarter last year.
• Our average sales price increased to $222,700 during the quarter and the value of our net sales orders increased 28% compared to the year-ago quarter.
• Our sales this quarter resulted in a 17% year-over-year increase in our backlog units, which puts us in a strong position for increased revenue and profitability in the second half of fiscal 2012.
• Increased our homes under construction while reducing our spec percentage to 50%, which is the lowest level in recent history. We are also evaluating and selectively investing in land acquisition and development.
• We are finding opportunities to take market share and existing markets while evaluating the attractive new sub-markets. We continue to dominate the entry-level market while expanding our product offerings for move-up buyers. We are optimistic for the remainder of fiscal year 2012, after recording net income of $68.3 million for the first 6 months.
• Our second quarter home sales revenues increased 27% to $931 million on 4,240 homes closed, up from $733 million on 3,516 homes closed in the year-ago quarter. Our average closing price for the quarter was up 5% compared to the prior year and up 2% sequentially to $219,500.
• Net sales orders for the second quarter were up 19% from last year to 5,899 homes on a 6% decrease in our active-selling communities. In the March quarter, our average sales price on net sales orders of $222,700 was up 7% compared to the prior quarter and up 3% sequentially.

Why build an ownership position in D.R. Horton (DHI) now?

BLUF: Homebuilding company’s stocks are on sale, now is the time to accumulate shares before their price returns to pre housing crisis levels (DHI currently trades at $16.41, DHI traded at $41 in July 2005). Specifically, D.R. Horton is positioned to take advantage of a decreasing list of competitors, has recently reported higher revenues, earnings, closings and orders and maintains a strong financial position to weather the short-term storm for long-term success.