Money Investor
Long/short equity

Hovnanian: Avoid This Shareholder Diluting Homebuilder

A potentially nasty investing pitfall is searching for hot sectors, and then finding the company whose stock performance is the laggard of the sector. This is a common mistake investors make when they assume a rising tide lifts all boats. The housing sector is a terrific example of where this type of investing mistake could be particularly painful. Previously, I have espoused my belief that the supposed housing recovery is unsustainable and built on a shaky foundation at best. At the same time, I have attempted to point out at least one homebuilder that has underperformed its peers for no reason and offers the best risk/reward profile for an investor who wants exposure to the sector. This latest article will...

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