JRCC chart almost similar. JRCC bulls were very giddy when it hit 5.80 few weeks ago, the same price that HOV hit. They are very similar as both have junk debt. HOV's balance sheet is actually worse as they have negative $500 tangible common equity in an industry that prices the stocks on a multiple of equity. It takes equity to invest and develop land for future growth. HOV is working for the bond holders and paying a high rate of interest on their junk debt. While other builders that have positive equity, at least have no interest on that portion of their capital structure. Somehow penny traders and boiler rooms have been able to pump this stock above $5. But now we are starting to play with the big boys. And what real invement funds would choose to invest in HOV as an INVESTMENT relative to another real builder with a real balance sheet?
I can remember when Yahoo first started these boards. There was a lot of intelligent people posting and it was very constructive but as the boards gained in popularity every kid who had access to a computer put their 2 cents in along with the spammers.
I read the boards when I have time because every now and then someone post something that has value.
"Re: Re: Re: HOV hasn't made a payment on the Preferred stock in 5 years!!!
By csco_brat . Oct 18, 2012 12:12 PM . Permalink Go to topic"
"Trust me i'm shorting a lot of shares. This has the most bankrupt balance sheet on the NYSE. In an industry where you are priced off of shareholder equity and you need financial flexibility to make land deals."
I'm getting your point...and I'm curious how much did you lose? Be truthful a lie will catch up with you.
You are the dumbest poster I ever seen.
How can you compare recovering housing sector with dead coal sector that had small pop due to Romney Effect before the election?
If you are short,, just short. No dumb gibberish !!!
HOV is the weak dog of the homebuilding sector, the same way JRCC is the weak penny stock of the coal sector. Whenever there is a negative move in homebuilders like this weeks downward coal move, HOV will likely come crashing down similarly to JRCC. That is my comparison. I don't think it will fall to 2.7 like JRCC, but 3.70 maybe if something happens to knock the real homebuilder stocks down 10%.