RYL is losing money bigtime to the tune of $8/share,has a PE that can't even be measured and has no hope for any future earninga for quite some time and yet sells for over $29/share. On the other hand Citigroup with much more status and stature , making money, paying a much better divdidend with a measurable PE sells for $20/share. So, how can this loser be selling for so much more?
Personally , I think both are in deep trouble but Ryland more so than Citigroup. I quess some things just can't be explained. But my feeling is very soon the light will flash on and the reconciliation will take place.
price of share doesn't mean anything...it's the company value. how many times it is cut up (shares) is irrelevant. there is obviously speculation that more bank lines can be tapped if the housing market turns. make a call on the new home environment. if it doesn't get better anytime soon than this rally is short lived.