Toll Brothers’ satisfactory performance during the third quarter of 2010 given the highly unstable economic condition has been appreciated by almost all the firms in the category.  They even believe that the Company’s balance sheet and cash position are much stronger than what its competitors possess.  Thus, TOL has ample scope to utilize the potential long-term investment opportunities coming its way.  However, the weak economy, slow job growth, high unemployment have pulled down the demand for new and existing homes to record lows.  Consequently, Toll Brothers, as a luxury home builder is bound to face the adverse effects on its revenues, gross margins, earnings as well as impairments.  Some firms initially expected expansion in gross margins, but given TOL’s restricted guidance, they are maintaining a neutral stance.