Anything over $2 is really lucky for shoreholders. I was trying to short this in $4's last year but just gave up interest. Now i reshorted alot at $7's friday.
The book value is negative and this stock isn't even allowed to pay a dividend on its preferred stock.
How in the world could this possibly trade $7. If it had low debt maybe it would have a chance to rebuild book value in a 2012 housing boom from the current -1.50 to the $3-4 range if everything went PERFECT.
But with 1.7 billion in debt and interest payments alone that eat up over $100mm a year. There is no way this company can have earnings to rebuild equity.
For $600 million investors are buying into a company with liabilities> asesets!
Wouldn't a real estate investor rather just take $600 million and buy some land and be even from the start. Rather than ponnying up $600 million and immediately be insolvent by $150 million and staring at annual interest payments on $1.7 billion in debt that will eat up all gross margin short of a 2002-2005 style housing boom?
HOV will offer some shares and then try to buy back some debt at discount. And guess will do this over and over and mangament will keep getting pay checks.
2 posters with no prior posts on this board suddenly become experts on where the company and stock is heading. Just because you missed the boat on the recent run-up is no reason to start trashing the stock now.
Your statements might have more credibility if you had some posts on this board before today.