I'm not sure whether it's relevant, given all the US test/demonstration work is located in Florida, but I read a Bloomberg report last week about an interesting problem with the condominium sector Florida (and yes, I realize that Hadrian's can't build high rise buildings). Nevertheless, following the recent tragic collapse of one of those condo buildings, and subsequent inspections of all condo buildings, it has been discovered that circa 80% of condo buildings in Florida are defective and orders have been placed on all to rectify same - costing $millions per building that the individual owners can't afford, so they are selling at severely discounted rates. In short, no one wants them, and many will have to be demolished due to lack of funds to rectify these defects.
Now here's the rub. There are many thousands of individual apartment condo's in Florida that no one wants. High-rise is on the nose - dangerous and unaffordable to repair and maintain - and the owners are fleeing like rats on a sinking ship. In light of this it is not unreasonable to conclude that many of those thousands of condo owners may prefer to choose the safer, cheaper option of an individual single/double story home. And given they may be urgently needed to fill the gap, well...enter FBR.
Anyway, just spit ball'n on the nearology aspect of the two aspects in play. Might be something, might be nothing.
FBR Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
