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KB Home's (KBH -1.9%) SEC probe makes Citi uneasy, because while a severe outcome seems somewhat...

KB Home's (KBH -1.9%) SEC probe makes Citi uneasy, because while a severe outcome seems somewhat unlikely, it would be extremely painful if realized. "There are other ways to make money in the homebuilding space without going long that tail risk," firm says, noting Pulte Homes (PHM -3.75%) and Beazer (BZH -6%) offer better risk-adjusted returns.
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