MDC Holdings

MDC. Holdings, inc. is one of the biggest homebuilding companies which provide construction services. MDC holdings currently ranked among the best five companies and its ranked third. MDC holdings have a beta of 1.16 and are doing much better in the industry. This company has managed to perform well in this industry of construction simply because it has some financial businesses that subsides its operations. According to last year’s company performance, the company recorded a revenue equivalent to USD 1541.22 million on its fiscal year. Operating loss of the company reduced last year as compared to 2009 because in 2009 its operating loss was USD 287.10 million. Its net loss shows that the company is moving at a positive direction simply it recorded a net loss of USD 214.25 million, (Bloomberg businessweek, 2011).

The company has long term and short term development initiatives whereby its planning to fully integrate its operations with financial services .The Company is a dual operating company whereby it has a construction section and on the other hand, it provides financial services to the society and for those who want construction services. The construction section is one which provides most of the profit simply because it operates on basis of scratch building and also it does buy and sell services to families. Homebuyers have benefited a lot simply because the financial department provides them with mortgage loans which enables on to buy a house or build and repay the money slowly, (Yahoo finance, 2011).

This company has entered the market in a direction which helps it to be a bit competitive than its competitors. Combining homebuilding services and financial services is a key strategy which enables and will enable the company to strive in the market regardless of the number of competitors. Insurance services that are provided by the company are some of the services that will enable the company to hold large market segmentation. Use of complementary services is what the company has used to enter in the market and have made it. Most of the companies are operating single services whereby incase there are no return, and then they experience high losses. This company has managed to have a large number of customers simply because it provides full services, (Bloomberg businessweek, 2011).

Although we are moving in a direction whereby there is less in construction services, global growth opportunities of home building industry is still high and has positive returns. Am example of global growth opportunity for HBI can be seen through the general electric (GE). In the entire construction industry, GE has provided some important measures on those companies which want to enter and for those who have already entered on ways they are required to operate. GE has done quite an appreciate-able work in research and investing opportunities which clearly shows that although building companies are about to be extinct, there is still room and hope for developing and operating just as usual, (Yahoo finance, 2011).

Some of opportunities that exist include say the Ecomagination services which GE has invested fully in the project. The financial performance of some of the projects that the company has entered should provide more than 120% revenue as compared to present.

Reference:

Bloomberg businessweek, (2011). Retrieved from            http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=          MDC:US, on April 5, 2011

Yahoo finance, (2011). Retrieved from, http://finance.yahoo.com/q?s=MDC, on April 5,          2011

 

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