One Homebuilder Stock Is Upgraded [Housing Tracker]

Homebuilder Stocks

UBS Lifts Builder Hovnanian To Neutral On 'Overdone' Pullback.  Analysts at UBS kept a cautious tone on beaten-down shares of Hovnanian Enterprises Inc. even though they removed the stock from their sell list [to neutral], citing valuation after a recent decline during which it fell heavier than the home-builder group… UBS analysts David Goldberg and Susan Maklari: Since topping out in late April, Hovnanian (HOV) shares have lost 45%, a steeper drop than the 30% decline seen for the builder group… The stock now trades at a discount relative to peer average based on book value… Hovnanian "continues to face significant liquidity constraints, reflecting its greater leverage relative to peers."  (DJ via CNN Money, June 17^th)

Standard Pacific Reports 12% Drop in Orders.  “Standard Pacific (SPF): Net new home orders for the first two months of FQ2 were down 12% from FQ2’07, with a cancellation rate of 25%, down 3 percentage points from last year and up a point from Q1’08. Taking into account the number of active selling communities, a so-called "same-store" comparison, orders were down 18%, but on that same basis, orders were up "slightly" in California, up 42% in Florida and up 10% in Arizona. Those positives were outweighed, however, by a decline of 34% in net new orders in Texas, a drop of 59% in the Carolinas and a 64% plunge in Colorado.”  (Big Builder Online, June 17^th)

Fitch Affirms 20 & Downgrades 9 Classes from 4 Centex Subprime Transactions.  “Fitch Ratings has taken… ratings actions on Centex (CTX) Home Equity Loan Trust mortgage pass-through certificates.”   (Trading Markets, June 17^th)

Laing Launches Custom Home Division.  “At a time when many home builders are looking at affordable housing as a way to succeed in today's challenged market, John Laing Homes is moving in the opposite direction. Company management announced today that it will add a bolt-on operation to its luxury division by launching a custom-residence program. The new business, called Custom Residences, will fall within the realm of the company's Laing Luxury division.”  (Big Builder Online, June 17^th)

Buyers Invited to "Summer Savings Days". Connecticut: “From June 20 to June 22, Del Webb’s [Pulte Homes (PHM)] Oxford Greens community will hold its “Summer Savings Days” sale, during which the luxury active-adult community will offer buyers 10% off the price of selected homes. The sale overlaps Del Webb Day, taking place on June 22.”  (Stamford Plus, June 17^th)

 Hot Summer Savings Weekend at Pulte Homes.  Raleigh, NC: “Pulte Homes is celebrating the official start of summer with special “Summer Savings Days” June 20-22, 2008. Pulte Homes communities throughout the Raleigh area will be open Friday through Sunday to offer homebuyers hot pricing and sizzling special offers during this special three-day sale. Limited-time “Summer Savings Days” offers in the Raleigh area include:  $10,000 - $35,000 in incentives on select homes and  1 year of Homeowner Association dues paid!”  (DBusiness News, June 16^th)

 Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

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