dhkystud

The Rebound List - Cramer's Mad Money (8/26/08)

Cramer is looking at the chart and not the P&L. Most of his builder stocks on the " Housing bottom list" are selling homes at a negative gross margin, and can't cover there overhead. Ignore the graphs and the charts, study the balance sheets. Liquidity is touch and go. If the prices of homes don't rise quickly (which is unlikely), these builders won't get a gross margin to cover material increases. Ironically, material is still increasing in price and prices are dropping. Why would you want to be a partner in that business model? JBS