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Tom Armistead
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I'm a well-informed retail investor and post on SA in order to expose my thought process to critical examination and comment from readers. It makes me a better investor. I'm particularly proud of bullish macro articles posted in 2009 and later, in which I presented ideas that encouraged me to... More
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  • Selling KBH on the SEC Investigation 0 comments
    Oct 13, 2009 12:12 PM | about stocks: KBH
    KB Homes (NYSE:KBH) recently announced that the SEC is investigating their accounting.  I have been long the stock, beleiving that the company's ability to appeal to the entry level buyer and generate revenue in today's markets was reason to expect them to do well when housing would recover. 

    Commentators have questioned my position, citing KBH's trouble with Chinese drywall, bad practices in their mortgage subsidiary, and the difficulty of improving margins to where they could make a profit.

    Possibly the SEC is doing their usual thing, going after some kind of insider thing on options, while more serious offenses go unchecked and unprosecuted.  Years ago I kept the books for a sleazeball contractor, there was some stuff that didn't add up very well, or make a lot of sense, but the CPA on the case always seemed to find a way to do something with retained earnings and it would go away. 

    I really don't want to find out any more on this situation, I sold the bulk of my position yesterday in the pre-market and the remainder is scheduled to go this week. 
    Themes: Homebuilders Stocks: KBH
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