Even simple T/A says it is waaaaaay overbought. No matter the earnings they can be blowout. But this puppy has run very hard the last few months. 3.70-ish is 50 DMA support. The best of breed is Lennar, NOT HOV.
"they have gotten their financial house in order"??? Show me! You are so sadly mistaken. They have more debt than ever, 10x their equity which means cash flow can always be a issue. I think what you are referring to is that they keep extending their maturity on the debt they have. They did a little retiring of some debt last year only to issue new debt at lower rates. Thats what I call robbing Peter to Pay Paul. THey should have been loading up on cheap last the past two years if they were a smart HB when actually they signed a deal with another investor who sells them land at a premium. When they were trading for $40 as you say, times were very different. Margins were high and everyone wanted a house. Those dynamics have changed. Many people want to rent and stay a renter. They cant qualify for a loan with bad credit and a weak job market. Many people will have bad credit for 7-10 years. So what will drive the stock to $10 I ask you? The same thing that drove it over $70 at the height, hype? Yes that makes me want to load it now. OMG why didnt I think of that? You all must be so smart. I loaded it under $1 and blew out last year over $7. Loaded again under $2 and blew out again. When it goes under $4 again I will buy back in just to take your money again...thanks for playing my game!