StockBoy2

Hovnanian Enterprises Suffers Gruesome Fourth Quarter

This would not have happened under ther leadership of Kavorc Hovnanian. The Son is not the Father! Ara has never experienced hard times or a major slow down, and accordingly has not planned for the event. There was a time when the company understood diversification, and the price point sensivity of their product.
Look for continues decline as they run out of land and lots. Ara thinks he will by land back at a 25% discount, lower his home prices accordingly, and expand his market base. Quite the contary will happen. He will be bidding top dollar, bidding against every other homebuilder for scarce lots. Raw land takes up to two years to develop. It will take Ara 9 months to realize his mistake, two years to develope lots, and three years to show a net profit. Sell, sell, sell!