HOUSING…All we are left with is another case study in fear greed and leverage. I started writing the case study back in February of 2007 (Wall Street set this case study in motion when housing stocks first broke out to new highs in 2002): Homebuilders – The NEW Value Trap Five years from now when …
Tagged: Home Builders
Homebuilder Mess…Real People, Real Tragedies
At this point, blaming will not solve the unprecedented problems. Here is a taste of the real stories and the spreading mess . Can you shoot homebuilder executives for not being able to read a balance sheet and analyze leverage? If so, thousands would be lined up, but Wall Street would force the creation of …
The Bear Case…
Before you bitch, this post hurts. It hurts because it is true. I am long nearly 100 percent and have no shorts positions. The best thing about this market has been that it has survived. It’s really not important in hindisght, just how. It just has. Hooray. The next best thing is David Tice and …
Hey Homebuilder Stock Owners…You Prepared For This?
Yesterday I asked you if you were prepared for an upside stock explosion. Today I was reading about the 7th year of a continued mess in telecom – The REAL bubble. The bubble that just won’t end it’s tortuous unwind. If you own homebuilder stocks, are you prepared for the same thing happening over 5-7 …
Citibank…Thank Goodness They Warn on Homebuilders
In an epic clusterf@#ck of stock research, I am in receipt of the 52 page research report on the Meritage Homes (MTH) downgrade from Citibank. Today, after an 85 percent drop in Meritage, they have dropped the homebuilder to a Hold from a BUY with a $16 price target. Thank Goodness Elliot Spitzer is on …
A Homebuilder Bankruptcy is Imminent
I have been in the market too long and I just know a homebuilder bankruptcy is coming soon. Here is what I wrote back in February and the meat is below: Homebuilders – The NEW Value Trap Five years from now when the homebuilding stocks are 20-30 percent lower and marking time, small investors will …
Homebuilders Cause Cancer?
Maybe the funniest line, not meant to be funny in tonight’s New York Times…’Still those results beat Wall Street’s expectations “. Let’s look at the results, shall we: Toll Brothers, the nation’s largest builder of luxury homes, said Wednesday that its third-quarter profit plunged 84.8 percent as the housing downturn and credit worries resulted in …
From Meltdown to Meltup
Man were the leaners and momentum shorts wrong. Somebody hates them. They are going to feel Like Steve Martin did below: No sooner does my post speculating about a housing bottom dry than Bank of America plunge protects Countrywide with $2 billion . I could care less about the financials and homebuilders because I don’t …
Hand Over the Keys….BIIITCH!
Like I have been saying about the banks and mortgage companies: You know how to MAKE the loans, you have no idea how to COLLECT the loans . (Hat Tip – Trader Mike ) For those that have timed and made money off this debacle, truly well done. Most have just written about it and …
A Day in the Life of a Homebuilder CEO
This just came to me via a trusted source…deepthroat: Morning – Fire people 10-4 – Talk to Analysts – answer same questions you did yesterday and day before. 4-5 – Fire a few more people, check closing stock price. Drink heavily. Imitation Vodka now. 5- midnight – Rework spreadsheets under new new new worst case …