Hovnanian and Centex Shorts: Homebuilders Heading Down Again?

The homebuilding sector has been under the spotlight for the last 18 months, with many believing that the 'home starts' numbers are starting to point to a bottom.

One current deal in the sector creating a lot of interest is between Centex Corp. (CTX) and Pulte Homes Inc. (PHM). The short base (as measured by Percent Shares Outstanding on Loan) in CTX has increased by 49.17% to 11.50% over the last month.

One interesting directional short in the sector is the homebuilder Hovnanian Enterprises (HOV). The short base in HOV has risen over the past month by 17.07% to 12.79%. The utilization (which measures the supply and demand in the securities lending market) of HOV is relatively high at 69.07%.

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Comments

[FloridaBoy2:]

These builders have plenty of negatives and now have this to deal with. It is just now ramping up and the rabid lawyers are ready to help
themselves. Google Chinese drywall.

southflorida.bizjourna...

Jun 14 08:33 AM