Considering the recent aquization of centex by Pulte. Look out for further consolidations. The next one in my opinion is Beazer by any other similar builder, considering the price of Beazer(Bzh) is so low.
Centex brought cash and land holdings to the table, Beezer just brings debt. Now as for todays rally, if it is just based on Wellsfargo earnings then it's a complete joke. think about it the government gave them $25 billion and let them absorb Wacovia for pennies on the dollar, this said how hard could it be to show a $3 billion profit. I still say the downside is not finished yet.
>>Now as for todays rally, if it is just based on Wellsfargo earnings then it's a complete joke<<
A year ago Wells made $2 billion in the same quarter...this year they made $3 billion...AFTER a $25 billion injection from the Fed. That's not exactly my idea of progress, and we will revisit the lows....maybe next week, maybe a year from now, but it is inevitable.
Beazer has way too much debt and they still have a lot of outstanding litigation from the mortgage and SEC issues of 2 years ago. I don't see anyone taking a chance on them until some of these loose ends get resolved and who knows when that will be. Way too much downside risk in exchange for too little upside. Most likely they'll be allowed to either die on the vine or somehow pull it out with a hail-mary, either way they're going to have to make it on their own.
Not to be offensive, then why are you on this board? Are you just riding the short wave up? Or planning to short? I'm just curious.. I watched the stock for a month before I decided to finally pull the trigger 1800 shares @ 1.31, plan on buying on the dip. This is a $3 stock by July. Past earnings are irrevelant to me at this point, its all about the future. I remeber when KBH was at $8, and I was kicking myself for not pulling the trigger then. I'll come back in about 2 months, and we'll see where this stock is at..