KB Homes (KBH-$15.63) said on Monday the Securities and Exchange Commission is investigating it for possible accounting and disclosure violations. As if the SEC were not enough of a distraction – if the homebuilder’s tangible net worth falls below the required maintenance covenant of $278.2 million, its bankers could be poking through its books, too:
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Editor David J Phillips does not hold a financial interest in any stocks mentioned n this article. The 10Q Detective has a Full Disclosure Policy.
1 comment:
David,
In the most recent KBH 10Q, it says that they have gross deferred tax assets $946 million and net DTA $1.1 million. I believe they have taken a valuation allowance for the rest of the balance that you cited. Does that mean they have already written the balance down for the foreseeable future? If this is the case, wouldn't that already be reflected in book value and TNW? I agree with the thesis and think you do some great work, just wanted to make sure I was thinking about the issue correctly.
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