Topstockblog

Blogging to add value. Sharing and discussing helpful websites, money, stocks, etc.

Shorted PHM

The Builder PHM reports after the bell and I expect the stock will trade lower.  CTX announced a horrible quarter last night, and I didn’t see any signs the rate cuts will fix the problems with forclosures up 79% this year.  Housing starts are way down, and inventories are at recent records around 10 months supply.  The FBI launched a criminal probe into the housing sector to examine inflated revenue by homebuilders taking on buyers that were not qualified. http://www.nydailynews.com/money/2008/01/30/2008-01-30_fbi_opens_subprime_loans_probe.html?ref=rss  

  Lending standards are tight, and not alot of buyers.  { PHM has cash and  some debt. The loss on the quarter was big.  The company took no losses on in mortgage business – have to do some investigating to see if that was just poor accounting or they don’t hold any liability on the mortagages they originate. More perplexed after the evening report. } PHM is headquartered in Michigan, and mortgage origination is a significant part of it’s operation. Stock is trading around $14 and has traded as low as $8.20 recently.

entertainment purposes only

January 30, 2008 - Posted by | Uncategorized | , , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: