Thursday, April 24, 2008
Seeking Alpha Jumps the Shark
Seeking Alpha yesterday:
Shorting Homebuilders - A Sure Thing
posted on: April 23, 2008 | about stocks: ITB / PHB / RYL / XHB
It doesn't happen often that the market conditions present a "sure" money maker, but homebuilders are now as sure a short as they can ever be.
Here are 7 reasons why:
Weak economy, rising unemployment, spent out consumers...
Home sales continue to deteriorate...
Many of the builders have loans that will mature and be due for refinancing...
Despite all of the above, homebuilder stocks have risen year to date as much as 60% from the bottom in January...
Seeking Alpha today:
Homebuilding Stocks: Rising With Reason
posted on: April 24, 2008 | about stocks: DHI / HOV / KBH / LEN / RYL / XHB
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The latest round of homebuilding data suggests (shocker) continued weakness, with demand refusing to budge despite vastly lower home prices and low mortgage rates. The slumping sales reflect a lack of desire to buy homes that are losing value as well as an inability to secure loans under restrictive lending standards.
The situation is very worrisome indeed, yet it will not play out like this forever, and investors know there is a fortune to be made in housing stocks upon the eventual turnaround.
Listed below are a few promising homebuilding stocks:
And people complain about Cramer. It's all a confidence game.