What morons are buying home builders with the very bad news. I di know one thing they are going to tank period. Housing is collapsing/ New and existing home sales are plunging and prices are dropping and massive inventory build up. This makes new home prices drop because of competition. You can get foreclosed homes at least 100,000 dollars cheaper than new ones that are new also. This is why home builders go under you can cant on it.No more tax credits to bail them out.
i just cant think of a way that any of these homebuilders can make money. There are so many vacant homes and homes that people cant give away. Once all the people that were under water but wanted to stick it out realize that it will take 15 yrs to get back to even they are gonna walk. there are still thousands of people walking away every month and it is gonna pick up big in the 4th qtr
Well today's action all over the home builder board, KILLED my short position. Sucks. Im still holding short though. I CAN NOT see this sustaining tomorrow and Friday. Keepin' my fingers crossed that we see red days ahead.