If you look at the one year chart, it shows HOV bumping up against the $7 level and now bouncing off the $6 level. I know it had a spike high to $7.43 and actually traded lower than $6. But whats a few cents among friends?
When I first got interested in this stock a couple of months ago I did a detailed analysis on its daily, weekly, and monthly moves. This analysis is now coming in very handy and proving to be fairly accurate.
After this latest downswing of around $1 and the move up today, I would expect a new swing to the upside which should put us above $7 again. Plus we will likely test the previous high of $7.43. This new swing to the upside should last about a week, but could last up to 2 or 3 weeks if a few head fake down days are thrown in for good measure. The market maker doesn't want to appear to be going straight up.
Then down another dollar, followed by an uptrend of greater than a dollar. As housing continues to recover, I would fully expect this stock will recover also. I would put it two years behind Pulte Homes, which is now around $20. My guess for HOV would be $20 by the end of next year.
Good luck, hoovers, but keep your seat belts on, as it may seem like being on a Ferris wheel..