Cramer says sell HB's 1 week before fed cut

Discussion in 'Trading' started by silk, Sep 10, 2007.

  1. dhpar

    dhpar

    thanks from here as well.
    - bought it as a hedge against the rate cut.
     
    #31     Sep 18, 2007
  2. covered all my homebuilders yesterday (RYL +20ish, LEN +19ish, KBH +16ish) went long today after cut should get a decent bounce before making lower lows later this yr or early next, that was a nice squeeze on hov too bad i didn't get any of it :(
     
    #32     Sep 18, 2007
  3. Great call silk.

    I bought BZH on friday morning when i noticed some of the others in the group were gaining some strength. Already up over 25% in less than 3 days. They could really throw some gas on this fire if there is anything even remotely positive in tomorrows housing #s.

    Thanks man!
     
    #33     Sep 18, 2007
  4. Citi upgrade H. Builders to "BUY"...

    quick quote

    symbol/price/date/book
    CTX 27.47 10/1/2007 9:59am CTX $26 9/10/2007 $39
    BZH 8.33 10/1/2007 9:59am BZH $9.45 9/10/2007 $37
    KBH 25.43 10/1/2007 9:59am KBH $26.25 9/10/2007 $31
    DHI 13.13 10/1/2007 9:59am DHI $13.69 9/10/2007 $18
    MHO 14.04 10/1/2007 9:59am MHO $14.90 9/10/2007 $41
    HOV 11.53 10/1/2007 9:59am HOV $9.99 9/10/2007 $27
    MTH 14.1 10/1/2007 9:59am MTH $15.95 9/10/2007 $36
     
    #34     Oct 1, 2007
  5. The thing that keeps me from investing in home builder stocks is that most of their assets are tied up in inventory. Couple that with the high debt to equity ratio of the sector and I think the discounts are justified. If bankcuptcies start hitting the sector you can expect at least a 75% mark down from these prices.
     
    #35     Oct 1, 2007
  6. GSH1976

    GSH1976

    There is no way in hell any of the book values you listed are even remotely close to the true values. Even after the enormous writedowns seen in the sector there is still a long way to go.

    The upgrade today was a joke. Stephen Chen upgraded the sector around this time last year and put price targets on a few of the builders above their all-time highs. Now there is a credible guy for you.
     
    #36     Oct 1, 2007
  7. They'll go up as long as market go up. What's the point...? everything will go up as long as markets up. Nothing matters. Just print money and everything will be A-OK , says Bernanke.

     
    #37     Oct 1, 2007
  8. drawer77

    drawer77

    great idea :)
     
    #38     Oct 1, 2007
  9. Update:

    * 2 year note spikes up in its biggest two-day yield increase in 26 years.
     
    #39     Jun 11, 2008