Am I looking at these numbers right? Beazer is going to buyback 10 million shares of stock, with 40 million shares outstanding. That's 25% of the company! Also there is 23% short interest in this stock, which equals over 8 million shares. In order to close those positions you have to buy. Following me here...Thats 18 million shares out of 40 million. Oh and did I forget that the insiders just bought 9 million dollars worth last month. You make the call.....
Yes, this stock is way oversold. Haven't seen anything like it for a long time. Could become very interesting when BZH steps up its buying and shorts fall over each other to cover. Everytime shorts try to manipulate this stock down by increasing their "stake", the real sellers disappear like snow in the sun. Shorts have essentially been the only sellers in an effort to fullfill their own false profecy. This could turn out to be an expensive hobby. Do they dare to short more when the price approaches 100 bucks or more and they are already in way over their heads?. I doubt it. All in all very interesting especially since the RE market has remained so much stronger than predicted. Must be a bit unsettling when you shorted at $60, $55 or....... $20. Those poor devils are out there and plenty of them.
With what money.. They don't have a pot to piss in anymore.. They have stated the company will not go over a 50% debt rate and they are basically there... Their debt costs are rising and they have no cash cushion.. The need the cast to continue to build out their projects.... Share buyback announcements are always useless and they are just a ploy... Every company has one
You're young, so I'll excuse your naivete.
Buying back 10 Million shares at $65/share will require them to cough up $650 Million in cash. Have you looked at their balance sheet and cash flow statements lately??? I don't see $650 MM sitting around for stock buy-backs. They blew through all their free cash buying back some 700K shares last quarter.
The buy-back announcement was an obvious staged gimick to prop up the share price at year-end. Long term, this sector will get squashed and BZH will be a loss leader.
Lets recap today shall we:
Sold my accumulated shares at 63.50 which was right now, and Im up a piss load. But yet I still have my core position which I started the day with, and the stock is down .43cents. I just made what it took you a month to make in a single day. Not too bad for a naive kid, I guess?
talking about your trades in this forum is poor form.
like tool, i am short since the 70's. based on deteriorating industry fundamentals, bzh should fall back to long term support in the short term (6 months). This support level is 58 or 52 depending on how you chart it.
longer term (1-2 years), bzh should fall more based on lower earnings. as yoy earnings results start turning negative, bzh will start a new downtrend.
congrats if you are nimble enough to slice off a point here and there if you can.
but i would be more interested to hear about your strategies and reasons, rather than your buy and sell points.
Let's get this right.
You made 0.5% today (or 1% if you bought on margin).
As if right now all the stock you are holding (your core postion?) is down 1%
And you seem to think you made more *today* than the shorts did holding from Feb 3 to March 3
Feb 3 close was $69.37
Right now trading at $63.29
That to me looks like the shorts made close to 9% in the last month. You didn't make 9% today.
Makes no sense. Americans are on average 50 lbs overweight and you argue they cannot afford food and therefor not afford their mortgage? There maybe a few skinny guys around. Bill Gates and Ted Turner come to mind but most americans can afford plenty of calories....and plenty of mortgage. Interest rates haven't been this low for decades.