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:

Unsold inventory...
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...
inflation....

Despite all of the above, homebuilder stocks have risen year to date as much as 60% from the bottom in January...
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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:
Hovnanian Enterprises
KB Home
Ryland Group
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And people complain about Cramer. It's all a confidence game.

13 comments:

wagga said...

First thought was that I had landed on one of Akubi's blogs.

Casey Serin said...

Nice pic... take off the octopus decal though... the big one, in front of the metal guy. The smaller ones, you can leave on... in fact, cover up more of the women. :-)

Lou Minatti said...

The whole housing bubble thing has jumped the shark. Everyone knows about it now. The blogs dedicated only to it are now filled with comments from people who slap themselves on the back and WRITE. LIKE. THIS.

Maybe it's time for a housing recovery blog, to get a jump start on the recovery a few years down the road.

Edgar Alpo said...
This comment has been removed by the author.
Edgar Alpo said...

That's probably the same person who bragged about buying 500# of rice over there the other day. Not the brightest bulbs in the package, that bunch.

Akubi said...

Vintage, octopus girls in bikinis! Sweet deal!
Can someone please explain why many of my featured bush-less lovelies feel fur is OK as a jacket?
When the shit hits the fan I think most PEOPLE deserve it, but not the animals. Zillow Book requests that YOU boycott fur from China where animals are skinned alive.
If anyone feels the world would not have been a better place if the human monkey strain disappeared 70K or so years ago raise your hand.
I don't. People suck and constantly let you down.

Akubi said...

Watch those videos and consider what China will do to us.

Akubi said...

Unless you are in fact facing foreclosure these days, housing is the least of our worries!

Akubi said...

And if you are facing foreclosure you probably deserve it - just like those Wall Street loosers.

w said...

I think Akubi is tapping into that deep seeded societal hatred that the Japanese reserve for the Chinese. Nanjing baby!

Akubi said...

I am neither Chinese or Japanese, French or German yet I find the study of such cultures in relation to war, history and such worth contemplating – and remembering – something seemingly lost in the U.S. of Asshats and their flag/olympic pins.

Edgar Alpo said...

akubi is right, people uber-sux. In all my travels through life I've only met a handful of decent down to earth people. The rest are scum. (Present company excepted, of course) ::rolls eyes:: [/grousing]

Sweet Cashback said...

Article

Another one of those "selling my home" articles with some gold nuggets.

Though they had already slashed the price on their 3,500-square-foot Mediterranean-style home several times - from $1.3 million to $795,000, which is about what they originally paid - they were willing to go even lower.

They also got creative. For instance, they decided to consider a lease-to-own deal, which makes it easier for cash-strapped buyers to take the plunge.

Cash-strapped buyer for an $800K home? HMMMMMM

CASEY! GO FOR IT!