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.
Related:
- All Seeking Alpha articles on Housing.
- Other articles on the Seeking Alpha Network by The Stalwart.
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