Quick Update on the Homebuilders: Sumitomo Forestry to Buy Tri Pointe Homes, Will Bid the Sector Friday but Signals Sector Weakness

I am publishing this note as an addendum to the earlier note Tuesday’s Housing Reckoning: Why the Earnings Slate is Stacked Against Investors

Sumitomo Forestry just announced that they will acquire Tri Pointe Homes (TPH) for $4.3B cash (TPH market cap at Friday close was $3.1B, enterprise value $3.5B).