tradealarm

What If Hovnanian's Equity Goes To Zero?

I agree! HOV is near bankruptcy with its high leverage.

Let me share a funny story:
When I visited HOV's homes, the seller told me that HOV had its mortgage company and didn't own much debt to bank. HOV would be very stable.

I told her HOV's balance sheet didn't look good.

She said, "We have over 800 million cash".

I smiled. We lived in the funny world. I didn't want to hurt her feeling by the words: HOV's asset couldn't cover its liability, let alone more than 2 billion debt.