although I like the company quite a bit, I sold my shares earlier this week based on the liklihood that this mortgage contagion is going to get much much worse. It is entirely possible that the U.S. residential housing market could be in double digit decline for years. Regression to mean is a statistical certainty over long periods of time and the housing industry has at least a 30% move to the downside for this to happen.
I am being very defensive right now and have 35% cash and t-bills as of Friday.
Thats a good viewpoint fpr the u.s. economy as covered in I believe Barrons. But OC is a global company and that growth could potentially balance events. Also, what if the fed drops its interest rates, possibly a full point could reverse much of the damages. Idle speculations on my part of the various scenarios. I will accumulate more at this price.