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Homebuilder Plunges 12% After CEO Admits They Were Over-Optimistic
Hovnanian shares are down 13% this morning (the most since 2011) after a worse than expected loss and drop in margins stunned shareholders. In a 2007-esque reflection, Hovnanian's CEO appears to be admitting things are not as rosy as homebuilders have all been projecting:
- *HOVNANIAN "TOO AGGRESSIVE" IN PRODUCING HOMES ON SPEC, CEO SAYS
- *HOVNANIAN CONCESSIONS ON SPEC HOMES CUT MARGINS: CEO
- *HOUSING MARKET FEELS A "BIT TENTATIVE," HOVNANIAN'S SORSBY SAYS
However, the CEO added 2016 will be the breakout year... so that's nice.
Is this the first chink in the armor of Homebuilder optimism?
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That nails it..
HOVNANIAN rejected reality and substituted their own. Bad idea.
"the most since 2011"
No, no, NO!!! It's the most... "Since Lehman®"
Cookie cutter, poorly finished with pop crap, cracker boxes that are a POS in 15 years. BUY THEM UP!! HOUSING WILL BOOM!
was that breakout or breakup year?
Break out or bend over, hard to tell when your snorting fairy dust...
Stunned I say, stunned....just stunning....everyone is walking around in a daze, stunned as Hoverinatzero's CORRAPSE!!!
hyperbole!
Let us not be so easily stunned?
How do they have any shareholders left? This POS traded at $70 in 2005
They're probably the elderly 'buy and hold' crowd who sadly still believe in that investing 'rule.'
Say it ain't so!
In honor of "If your BS dectector isn't screaming, it's broken," let's start a meme: create a livable shelter in the US without having a bank involved.
I like the idea of using shipping containers. Not sure the local building department would agree..
http://www.seacontainercabin.blogspot.com/
You mean I can't trust Hovnanian either ???
>>>Is this the first chink in the armor of Homebuilder optimism?
Depends on the flow of capital & RE yuan laundering.
i sold my house in NJ last year. have been in a holding pattern since. came close to buying another place last month before i came to my fucking senses. between A. our taxes being the worst in the country (people and companies fleeing the state) B. once christie (a democrap who claims he is a fiscal hawk) leaves, we will have endless democraps take his place and C. the very notion that ANY FRIGGIN TIME rates even INCH higher, real estate comes to a SCREECHING halt in this state, i decided to have my head examined any time i get the bright idea of going to buy something.
single biggest issue with the housing market: the last 6-7 years people have been purchasing houses based on what the monthly payment will be RATHER THAN then price of the home they are purchasing relative to their view on the short, intermediate, and long term view of housing. for this reason IMO this time its gonna be way fuggin worse. im backed up on this notion cuz like i said, any time rates inch higher, housing just stops in this state in particular. once rates move up (umm, for the wrong reason ie. inflation, default risk finally a factor bond investors take into account), its gonna be game-set-match on this whole articifical "housing recovery" ... i would have settle for natural "price discovery" 7 years ago after lehman.
The country is rotting at the coasts. Move.
In NJut not unique there are huge number of homeowners who dont pay - property taxes / mortgages or insurance the banks pay it - for now going on 7 years in many cases - they are not just blue collar but white as well and professionals who tactically recognize - as you do - the house has value sub mortgage outstanding so why pay
the banks are in a holding pattern waiting for what?
Rates won't go up
The shadow inventory banks and others are holding would crush prices if it were ever put on the market all at once.
Incomes are not sufficient to push housing even at these rates.
NJ, highest property taxes? Perhaps. But all of the govenment waste, corruption in the form of unions, absentee govt. appointee jobs and graft at every level of government is enough to make you not want to pay taxes there. Moved out in '91, never going back.
Just more Kabuki
I have the same tendency toward over-optimism. It's why I put 90% of each paycheck toward scratch-off tickets.
Uh oh. Time to fire up the NAR spin machine!
Obligatory "Now is a good time to buy or sell a home".
Release the wolverines at the next NAR convention. Great YouTube stuff!!!
shocked I tell you, shocked. That a homebuilder would lie to us, what has the world come to?
Just another fucking psychopath living in the Matrix
2016 will be better and if not, 2017 looks to be even betterer and if not 20xx will be better.
No fucking such thing as "too optimistic". Their stock is down only due to not building enough $500MM homes in a drought ridden part of the country.
Hovnanian. Yet another expat refugee from a rightly deposed monarchy, here in the US making bank off of his shitshacks. What a great fucking reeking cesspool.
Because buying back your own shares is just not enough....
All the false optimism starts with the Fed, extends to the DOW, and permeates bad decisons all around. At some time, the bottom line will once again matter. Until then, all we can do is get prepared.
Travelers has bought back 28% of their stock and Home Depot 23% over the last five years. Do you think they are overly optimistic as well? I certainly do.
http://ejmoosa.com/blog3/2015/06/09/buy-back-mania-the-top-sixteen-dow-c...
Go short nailgun shares.
The central banksters need to help the economy and pickup the nailgun slack.
Hov must be having a bit of incremental trouble finding inexpensive funding. In reality, the economy is in recession. This is just another confirmation. "Housing market feels a bit tentative" "too optimistic in building homes on spec".
Look out below, bitches. Are you awaited in Valhalla?
2016 break out ha ha ha show of hands which dumb ass is borrowing in this environment? And I don't care if rates are negative.
When will they sell cardboard boxes under freeway overpasses?
loose lending can like totally fix this
Were these the same people interviewed for the Homebuilders Confidence Index and the same ones noted in Housing Starts (which apparently are not turning into sales)?
Actually, it was just one person asked the same questions dozens of times...
They fell for the fiction that home sales are soft due to a lack of supply, so they they figured "build it and they will buy" but they figured wrong.
Lack of supply at reasonable prices, maybe.