Mohawk Industries, not a household name, but Mohawk Industries is a leading global flooring manufacturer for remodeling and new constructions of residential and commercial markets. From carpet, rugs, ceramic tile, laminate, wood, stone and vinyl flooring, Mohawk supplies it. Its core brands include: American Olean, Daltile, Durkan, Karastan, Marazzi, Mohawk, Pergo, Unilin, Quick-Step and IVC.
COMMERCIAL MARKETS
Cheesecake Factory chairman and CEO David Overton reportedly told landlords in a March 18 letter that a “severe decrease in restaurant traffic” has caused a "tremendous financial blow" amid the COVID-19 outbreak, as many locations have been forced to completely close, while others can only serve take-out and delivery.
In a memo dated March 25, U.S. mall owner Taubman is telling its tenants that they must pay rent amid the coronavirus pandemic because they still has its own obligations to meet.
Macy’s has the largest and most valuable real estate portfolio in the department store space, but recent months, Macy’s announced it was close 125 stores over the next three years.
RESIDENTIAL MARKETS
Homebuilder stocks have lost two-thirds of their market value in the last two weeks. weeks. And sentiment is just as bad. According to the National Association of Homebuilders, after hitting a record high in December, homebuilder sentiment has fallen in each of the first three months of 2020.
And as people continue to lose their jobs, it will become more and more difficult to pay their mortgages.
With unemployment claims rising weekly, the number of homeowners asking for respite on their mortgage payments has, predictably, increased by a sizable amount.
The total number of mortgages in forbearance rose to 3.74% in the week of March 30 to April 5, up from only 0.25% of all loans that were in forbearance for the week ending March 2.
That means the number of loans in forbearance increased by 1,396% in one month.
Close to 3 million U.S. homeowners have recently missed a mortgage payment. The number of home loans that are past due by one month or longer is now over 3% in the first week of April vs. 0.25% in early March.
These challenges in both the commercial and residential market is why Mohawk Industries Inc. has called its longtime former chief financial officer, Frank Boykin out of retirement. Mohawk has already warned Wall Street that the COVID-19 pandemic will hurt its first quarter results. Thus, the stock price has more downside pressure as the chart suggests to look for retest to the $60 level.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted via Steemleo
