The stocks of the homebuilders are still filled with numerous shorts, perhaps quite reasonably betting that the continued massive supply in the housing market with quash the construction of new homes. Despite that seemingly logical thesis, the price action of both the broad market and many of the homebuilding stocks is telling you that, while those intellectual shorts may very well impress you at an effete cocktail party with cogent and focused arguments, they are about to get their finely manicured faces ripped off.
__________________________
__________________________
__________________________
__________________________
__________________________
Nice, thanks Chess. Home sweet home!
i am long BZH
Looking at how IBD ranks these stocks fundamentally, they come off looking like complete dog-shit. I don’t do well at cocktail parties. So yeah, what is your take on playing shit companies? Always makes me uneasy…
I guess the more appropriate question is how long would you plan to hold any of these? Scalp or swing?