Quote of the Day
"A chairman buying shares would spook people who are short the stock. He's an insider. He knows the market's been depressed. He's got access to superior information." - Analyst John Tomlinson of Majestic Research, on the rally sparked by reports of the CEO and founder of Hovnanian Enterprises purchasing major blocks of stock.
"I would put zero faith in this having any legs. This is a one-day phenomenon." - Kevin Quinn, a managing director of equity trading at Stanford Group Company, on said rally. (Reuters UK, July 9th)
Hovnanian Shares Up On Chairman's Stock Buy. “Shares of Hovnanian Enterprises Inc (NYSE:HOV) rose more than 26% on Tuesday amid share gains across the home building industry and on news that Hovnanian's chairman had bought stock. SEC filing: Hovnanian's chairman and founder, Kevork Hovnanian, bought 220,000 shares at $5.18 each on July 3. News that the chairman bought stock might cause short sellers to cover their positions, said analyst John Tomlinson of Majestic Research.” (Reuters
WCI Communities reveals Exchange Offer For 4.0% Contingent Convertible Senior Subordinated Notes Due 2023. “WCI Communities, Inc. (WCI) said on Tuesday that it has commenced an exchange offer for all of its outstanding $125.0 million 4.0% Contingent Convertible Senior Subordinated Notes due 2023. The company is offering to exchange $1,000 principal amount of new 16% senior secured notes due 2013 for each $1,000 principal amount of the Outstanding Notes. The exchange offer will expire… on August 4, unless extended or terminated. Tendered notes may be withdrawn at any time prior to 12:00 midnight on the expiration date.” (Press Release, July 8th)
Centex Adopts Energy Efficiency Standards. “Centex Homes (CTX) announced Tuesday that it will include a standard suite of energy efficient features in all of its homes nationwide by January 2009. Centex targets first-time buyers and has been actively working on a comprehensive redesign of the company's product line… Tim Eller, chairman and CEO of Centex. "Monthly energy bills are having a growing impact on the budgets of our home buyers, affecting overall affordability." A Centex-commissioned study [found that] homes equipped with features included in the initiative… revealed an improvement in energy efficiency of up to 22% over comparable homes built to the most widely used energy efficiency code, the 2006 International Energy Conservation Code.” (Builder Online, July 8th)
Beazer Homes: Old Name Reaches New Low. “Beazer Homes (NYSE:BZH) is shorted by almost everyone. 63.20% of the outstanding stock is now short… [But Beazer] options are still possible trades. Often when [a] company reaches a point where it’s close to bankrupt, the options don’t outperform the stock and shorting the stock makes more sense if you can find shares to short. But the action yesterday in the options shows that you can purchase Puts in the month of August at a strike price of 5 and make more money on the options than from the stock itself. As the stock fell 10% yesterday, the August 5 Puts rallied 28%.” (Steve Patterson in Seeking Alpha, July 8th)
Hernando Subdivision Shows Signs Of Growth
Affordable Housing Deal Nixed
New Kind Of Housing In Trenton.
Sales Begin at New Stratton Flats Attainable Housing Development in Gypsum.
Toll Brothers Offering Unique Home-Buying/Home-Selling Event Sunday.
Group Brings Anti-Lennar Message To Vallejo. “Speakers from the Stop Lennar Action Movement targeted
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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