Hydro, you don't know what you're talking about. TOL could easily go back to $5. I know plenty about stocks. If you think they bottomed here, fine. I disagree. But calling me stupid because of my nick is funny from someone called HYDROBLUNT. LOL
in related news... SAN FRANCISCO (MarketWatch) -- KB Home CEO, President and Chairman Bruce Karatz has resigned after an internal investigation found that he backdated his own stock-option grants to increase his pay and will forfeit about $13 million in gains from the backdating, according to a media report Sunday.
Its just getting worse on wallstreet, how many companies does this make now for being investigated for backdating options???Every day there is a another company involved in this.
Maybe so, but at least I can recognize that charts are adjusted for splits, a very simple concept, (or so it seems). There is no point to retort to you as you have not put forth any valid argument. Like I said, the move has happened over 2 years, only the pigs and fools would expect much more. Understand the concept of money supply growth and subsequent asset inflation before you try to argue Real Estate and homebuilders. Also, I never said they bottomed. Nor do I expect them to go back to the highs. The fact is that if they simply stay in a trading range, the homebuilders actually DEPRECIATE in REAL (not nominal) terms. Maybe you need some of my Hydro to help you realize that.
According to Yahoo historical closing prices, TOL was trading at $2. Having split several times only bolsters the case for them to drop further. How's this for an argument: their business hit a brick wall. It's not growing anymore, it's in decline, and will be as the fed will likely increase rates for years. It is you who apparently doesn't understand that increasing earnings and revenues is what moves stock prices. I don't really care what you think, I've made lots of money before as a swing trader, so my chart reading skills are excellent.
You're right, all real estate will go to 0 and there will be no demand whatsoever in new homes ever again. So go ahead and short the hell out of it since it will become a $2 stock. Aight, you got me on TOL in 1990, it spent a whooping 5 months as a "$2" stock (never went below 2.25). Funny how in 1991, midst of the RE recession it just took off. But hey, according to your logic, TOL is worth the same as it was in 1990. I see you are a master mathematician also. Well of course, didn't you know that everyone on ET makes millions hands over fist and it's all true cause they say so. I'm sure you are a super duper swing trader, that's why you proclaiming doom & gloom on them after a 2 year sell off. That's some master chart reading right there. P.S. Homebuilders trade at rock bottom P/Es for a reason. If TOL was to dump all their inventory right now at 50% discount, it would still be easily worth more than $10 a share based on liquidation value alone. P.P.S. You and S2007 need to read Reminiscences of a Stock Operator. There are a couple on pages on what the insiders really mean with their public statements about business being bad.