Five interesting things that Hodges Capital research analysts discovered this week...

#1  CEO QUOTE: “We monitor the difference between the actual interest rate of our borrowers served by Taylor Morrison Home versus the maximum interest rate they could have qualified for as a gauge of affordability. In the first quarter, this spread averaged over 700 basis points for our conventional borrowers and over 500 basis points for our FHA borrowers giving us confidence in our customer’s financial flexibility, if and when interest rates move higher.” Sheryl Palmer, Chairman and CEO, Taylor Morrison Home Corporation.

#2  EMPLOYMENT: Data published in the March NFIB jobs report suggested that 42% of small businesses were having difficulty filling job openings. This news comes despite 28% of small businesses raising compensation and an unemployment rate that appears stuck at 6%. Furthermore, this trend could present a headwind to the opening of restaurants and service industries in the months ahead.

#3  SPAC: According to Strategas Securities, special purpose acquisition company (SPAC) initial public offerings account for nearly 80% of all IPO activity over the last 12 months.

#4  CHIP SHORTAGE: With a chip shortage now slowing down global auto production, attention is now on semiconductor supply chains. According to industry data, The U.S. accounts for 12% of worldwide semiconductor manufacturing capacity, compared to 37% in 1990. More than 80% of global production currently occurs in Asia.

#5  U.S. CENSUS BUREAU: As of April 1, 2020, the number of people living in the United States was 331,449,281, an increase of 7.4% since the 2010 Census. There are now more Americans over the age of eighty than under the age of two.

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