The Stalwart submits: It's happening. Homebuilder Toll Brothers (NYSE: TOL) warned on future earnings Tuesday morning. The stock, now around $34/share, traded as high as $58 earlier this summer. In the announcement they blamed Hurricane Katrina and greater regulations for the expected slowdown, but the market is sniffing out the nonsense. Home-prices are dropping and sales are slowing.
Back in August we put up two posts suggesting that it may be time to short the homebuilders. Our timing proved to be very solid.
« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of Seeking Alpha or its management. »