A Bankrupt Homebuilder?

I have definitely been speculating that it will happen and this morning Beazer Homes was the victim of the gossip.

Reuters
Beazer says bankruptcy rumors are unfounded
Wednesday August 1, 12:34 pm ET

NEW YORK (Reuters) – Beazer Homes USA Inc. (NYSE:BZH – News) said on Wednesday that rumors it would soon be filing for bankruptcy protection were unfounded.
“We have become aware of rumors circulating in the market about Beazer Homes’ liquidity and a prospective bankruptcy filing. We do not know where these scurrilous and unfounded rumors started,” the company said in a statement.

“For an accurate representation of the company’s financial position, including the company’s liquidity and near-term prospects, we encourage investors to refer to the company’s recently released third-quarter earnings release and the script of our conference call with analysts and investors,” the company said.

I was nuts to go bottom fishing and am getting the aggravation I deserve. Lesson learned. That said, a bottom for most of these is at hand based on the panic.

4 comments

  1. Cheesefries says:

    Howard-
    Your a cutting edge kind of guy. I’m sure you’ve heard about the vmware IPO coming in 2 weeks. I thought you might be interested in a video from the 2 week road show going into the IPO.
    I’m curious what your thoughts are on the future of “PC virtualization”.

    Here is the link to the video:

    Your clipboard has been temporarily disabled while you are viewing the roadshow presentation. The clipboard will return to its normal state when you exit or close the roadshow presentation.

  4. Chris says:

    Howard,
    How about LEAPS instead of bottom fishing the builders in straight buys. Just a thought and something I am considering myself.

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