Housing sector strong, fundamentals continue to improve, housing stocks clobbered and still plunging. At some point psychology is going to turn around and these stocks are going to be screaming buys. Maybe already screaming buys.
no. the disconnect is with the people that think that higher interest rate will have no impact on housing. Join reality. The growth that these home builder experienced when rates were in the high 3 and low 4% is gone and unless rates drop people are not going to buy new homes. But hey i get all sorts of resistence on this board for making what seems to be an obvious conclusion to higher rates.
Even if interest rates get back to 2001 levels, like 7.125%, people will still buy homes! It will be the new normal. 7% is still low compared to a several decade window. People are spoiled by the lowest rates in 45 years.
They ARE already screaming buys. And I did. This manipulation has only one purpose....to drive the price down to where the manipulators then buy it back again. If there was no such thing as shorting, this stock would be over $30 easily. The trick here is to take advantage of these bargains, then sit on them. No one doubts that it will be back in the mid 20's....could be within a week or two, could be in the Fall. But history dictates that that's what it does....it swings back and forth. HOWEVER....all the data about the current strong housing market, new home sales, still low interest rates, and DHI's own excellent level of success and huge increase in order backlog dictates that the run back up will be pretty huge. But you gotta' SIT on these shares and wait for it....not sell for a paltry .50 or $1.00 gain. Make the shorts cover at a lot higher price. Good fortune to all longs. And again....many thanks to whomever sold me their shares of this excellent company at these bargain prices.