All homebuilders are down on knee jerk selling over rising interest rate. The rise may actually spur contemplating home buyers into action. If you are constantly in and out of this stock then good for you. I prefer holding for the long term capital gains, but sell and buyback covered calls to take advantage of the stocks movement. In the long run, and after taxes, my method will net me more money than your method nets you.
When do you cover is the hard part. More people getting jobs = more available cash out there to buy homes. Fundamentals are still strong in the housing industry, not an opinion, I work in the industry, I see the demand first hand. Bump in rates not effecting demand, traffic unabated, rates are at historic lows, so when do you cover a short? Brutle to get caught. All home stocks down today, alot of profits in these stocks. Please, intelligent response requested not highschool rhetoric.
Your stock missed the boat!! The simple fact is that this was a 7 stock 6 months ago. You've had market averages at your back. Stock falls. You had a great earnings report. Stock falls. Interest rates creeping. The stock falls. They may sell more houses and they may have better earnings. Too bad you are relying on the stock price to make money. You don't make money unless the stock appreciates. It's down about 25% since the beginning of the year EVEN with all your so called good news. There are better plays out there for the past 6 months.
I'll ask a very simple question. When IS this stock supposed to move forward? It's a short play because it simply is NOT capitalizing on its strengths and hasn't for the past 6 months. Housing is booming and you're stocjk is going backwards. it would be fine if you made money on every house HOV sold. you don't. You make it on the stock. Down 25% in first 6 months of 2013.
Have at it. I'll debate until the crows fly home. You've got a loser equity.