Barry Robbins

Shorting the Homebuilders as Their Stocks Surge

I am currently shorting Lennar (LEN). There is no evidence of a turnaround in the homebuilders. There is a vast oversupply of homes, a massive reduction in available credit, and foreclosures are rising. There is no way that a turnaround is coming for the homebuilders. When I see a few of them declaring bankruptcy, then I may take a closer look at the survivors. Eventually, Toll Brothers may be a buy - but not until 2009 at the earliest.