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Beazer Homes USA, Inc. (NYSE: BZH) has just filed a mixed securities shelf registration that will allow it to sell securities in the amount of up to $750 million. This will allow Beazer and its subsidiaries to sell any combination of Senior Debt Securities, Subordinated Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Rights Stock Purchase Contracts, Stock Purchase Units, and Guarantees of Debt Securities.
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Posts for Ticker ‘BZH’
Beazer Files to Raise $750 Million (BZH)
Media Digest 7/2/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: California declared a financial emergency.
Reuters: An SEC attorney raised concern about a Madoff report in 2004.
Reuters: Auto parts supplier Lear filed for bankruptcy.
Reuters: NYC apartment sales are down more than 50%.
Reuters: Beijing Automotive will bid for Opel.
Reuters: GM told a judge asset sales was its only option. Read More
Media Digest 6/17/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: The US faces a long period of economic stagnation.
Reuters: Obama will release plans for a financial market overhaul.
Reuters: The White House will not help California fix its deficit.
Reuters: Large US company bankruptcies are accelerating.
Retuers: News Corp’s (NWS) MySpace fired 30% of its staff. Read More
Top 10 Pre-Market Analyst Calls (APOL, BZH, CB, CTSH, FITB, IRF, PBG, SNDK, SY, SYMC, WES)
These are ten of the analyst calls we are focusing on this Friday morning:
- Apollo Group (NASDAQ: APOL) Raised to Outperform at Credit Suisse.
- Beazer Homes (NYSE: BZH) Raised To Neutral at UBS.
- Chubb (NYSE: CB) Raised to Equal-Weight at Morgan Stanley.
- Cognizant Technology (NASDAQ: CTSH) Cut To Neutral at Goldman Sachs.
- Fifth Third Bancorp (NASDAQ: FITB) Raised to Outperform at KBW.
- International Rectifier (NYSE: IRF) Cut to Sell at Citigroup.
- Pepsi Bottling (NYSE: PBG) Raised to Neutral at JPMorgan.
- SanDisk (NASDAQ: SNDK) Cut to Hold from Buy at Citigroup.
- Sybase (NYSE: SY) Cut to Neutral at Banc Of America.
- Symantec (NASDAQ: SYMC) Cut to Market Perform at FBR.
- Western Gas Partners (NYSE: WES) Started as Hold at Citigroup.
Jon C. Ogg
June 20, 2008
Media Digest 5/13/2008 Reuters, WSJ, NYTimes, FT, Bloomberg
According to Reuters, HP (HPQ) plans to buy EDS (EDS) to better compete with IBM (IBM).
Reuters writes that AIG (AIG) says it sees no reason to follow the request of its ex-CEO to the company’’s annual meeting.
Reuters writes that Staples (SPLS) has raised its hostile bid for Corporate Express.
Reuters reports that Nissan reported a large drop in earnings and said that the next year would be disappointing due to higher commodities prices and weak US market..
Reuters writes that Microsoft (MSFT) has launched WorldWide Telescope, free software for exploring outer space.
The Wall Street Journal writes that Dell (DELL) is trying to reinvenet its high end game computer business.
The Wall Street Journal writes that Exxon (XOM) management has asked investors to reject a move to have the company elect a separate chairman and CEO.
The Wall Street Journal writes that Beazer (BZH) will restate is results for nine years.
The Wall Street Journal reports that Merrill Lynch (MER) tried to convince investors that it has enough capital and will not have to raise money.
The Wall Street Journal reports that Clear Channel (CCU) is near a deal to complete its LBO.
The Wall Street Journal writes that Dish Network (DISH) is losing subscriber growth momentum.
The New York Times writes that Nissan will sell an electric car in the US by 2010.
The New York Times writes that Wachovia (WB) faces a inquiry over auction-rate securities.
The FT writes that UBS (UBS) sees further problems in the US housing business.
Bloomberg writes that Toyota (TM) will cut discounts on its Prius hybrid as the cost of gas rises
Douglas A McIntyre
NYSE Delisting Candidates, Headed To The Pink Sheets?
With the sudden delisting of the Journal Register, it is interesting to look at who else is on the NYSE list of companies who could get delisted. The NYSE is generally very good about this and lets the companies have time to get into compliance. Below are the lists. They are grouped based on why the NYSE has problems with them.
Issuers that are noncompliant with its quantitative and corporate governance listing standards:
Fremont General Corporation (FMT)
Fremont General Financing I (FMTPR)
Impac Mortgage Holdings, Inc. (IMH)
Impac Mortgage Holdings, Inc. (IMHPRB)
Impac Mortgage Holdings, Inc. (IMHPRC)
Journal Register Co. (JRC)
Luminent Mortgage Capital, Inc. (LUM)
Medifast, Inc. (MED)
Milacron Inc. (MZ)
NIS GROUP CO., LTD. (NIS)
Scottish Re Group Limited (SCT)
Scottish Re Group Limited (SCTPRB)
Sun-Times Media Group, Inc. (SVN)
Zarlink Semiconductor, Inc. (ZL)
Companies as delayed in filing both Annual and Interim Reports:
Beazer Homes USA, Inc. (BZH)
Diebold, Incorporated (DBD)
International Rectifier Corporation (IRF)
Penn Treat American Corporation. (PTA)
Sunrise Senior Living, Inc. (SRZ)
Symmetry Medical Inc. (SMA)
VeriFone Holdings, Inc. (PAY)
W Holding Company, Inc. (WHI)
WellCare Health Plans, Inc. (WCG)
Companies as delayed in filing an Annual Report:
China Yuchai International Limited (CYD)
Fremont General Corporation. (FMT)
Fremont General Financing I (FMTPR)
Impac Mortgage Holdings, Inc. (IMH)
Impac Mortgage Holdings, Inc. (IMHPRB)
Impac Mortgage Holdings, Inc. (IMHPRC)
Mesa Royalty Trust (MTR)
Schawk, Inc. (SGK)
Some firms make it on to more than one list, and some, like JRC and FMT, have already left for the "pink sheets"
Douglas A. McIntyre
Did Homebuilders Finally Bottom? (DHI, TOL, LEN, CTX, HOV, BZH, XHB)
If you have been watching homebuilders of late, you’ll notice a sharp disconnect between the headlines still coming out and the stock prices of many homebuilders. The move today is partly attributed to Sam Zell’s interview on CNBC saying this spring should mark the bottom in housing. The SPDR S&P Homebuilders (AMEX: XHB) ETF shares are up 6.3% at $22.56 today, and its 52-week low is $15.22.
Keep in mind that Zell has that Gafisa SA (NYSE: GFA) as one of his big plays in Brazil, which we recently noted as one of Jim Cramer’s top picks in Brazil. We have also noted how many of these stocks had doubled from lows. Banc of America recently was the first to upgrade several of these in the homebuilder sector as well.
Today, shares of these are up big, which you can see in comparison to their 52-week lows:
Stock/Symbol Trade Change 52-wk Range Market Cap
DR Horton (DHI) $16.44 +6.06% $9.78-27.26 $5.18B
Toll Bros (TOL) $23.24 +6.02% $15.49-32.00 $3.68B
Lennar (LEN) $20.40 +8.63% $11.98-51.43 $3.26B
Centex (CTX) $26.10 +9.53% $17.77-49.85 $3.19B
Hovnanian (HOV) $10.91 +10.20% $4.25-33.32 $679.76M
Beazer (BZH) $8.74 +12.48% $4.53-42.42 $342.68M
We have noted over and over that this sector would bottom and start to recover long before the news starts to look like anything resembling good news. That may or may not be now, but when you see an ETF recover 50% from lows you have to wonder how much worse things would have to get for that recovery to not at least partially hold up. At one point, things were getting so bad we even asked "which would hit zero first?"
We still expect more bad headlines with no end in clear site. But a 50% recovery in an ETF that measures a sector has to be telling you something, even if there will be more bad days on and off and even as more headlines still look bad.
Jon C. Ogg
February 26, 2008
Which Homebuilder Stock Goes To Zero First? (XHB, DHI, TOL, LEN, PHM, CTX, NVR, KBH, MDC, RYL, HOV, BZH)
Everyone keeps predicting one or more of the large US Homebuilders is going to implode because of their overbuilding and inability to sell new units at their old highly profitable margins. Most of these have large land bank losses from property options being written off. inventories are through the roof, no pun intended. Well, you’ve seen and heard the news.
What we wanted to do was show a list of the old major homebuilders to show how the stocks have sold off over the last year and even how low the market caps have become in the sector. Dubai has signaled it wants to buy into a homebuilder, and that was before Abu Dhabi injected $7.5 Billion into Citigroup.
Measuring stock price alone is no way to judge, but looking at the sell-offs from the recent highs may be a judge. Some are down more than 80% from their 52-week highs.
Tick PRICE CHANGE $52-WEEK MKT-CAP
DHI $10.23 (-$0.35; -3.31%) $10.46-31.13 $3.22B
TOL $18.12 (-$0.01; -0.06%) $18.12-35.64 $2.84B
LEN $14.08 (-$0.42; -2.90%) $14.50-56.54 $2.26B
PHM $8.92 (-$0.24; -2.62%) $9.00-35.56 $2.28B
CTX $17.93 (-$0.45; -2.45%) $18.34-58.42 $2.18B
NVR $442.59 (+$8.59; +1.98%) $398.96-851.96 $2.27B
KBH $18.65 (-$1.00; -5.09%) $19.61-56.08 $1.92B
MDC $32.15 (-$0.40; -1.23%) $32.49-60.34 $1.47B
RYL $19.76 (-$0.26; -1.30%) $19.97-60.13 $831.58M
HOV $6.95 (+0.02; +0.29%) $6.92-38.66 $432.32M
BZH $7.12 (+0.15; -2.06%) $7.06-48.60 $279.16M
We aren’t going to make a determination yet as to which ones will live and which ones will bite the dust. Unfortunately you can’t even trust the balance sheets right now because there is simply no way to calculate the off-book transactions, the value writedowns that each will fess up to, and how many of these homes that were juiced-up and sold above market with rebates and incentives that some of the builders will ultimately have to take back at some point in the future.
At least one or some will likely fail. History would dictate that some cannot survive the malaise if it continues at this rate. Ultimately, some will thrive after this dust storm settles. But "ultimately" can be a long ways off.
If you noticed the news this morning you saw a 4.5% decrease in housing prices in Q3 2007 over Q3 2006, and that was after a 2.2% decrease in Q2. There is no price rebound expected in 2008, and foreclosures are expected to rise as well.
The SPDR S&P Homebuilders ETF (AMEX:XHB) shares are down 0.8% at $17.05 late in the day.
DR Horton (DHI), Toll Brothers (TOL), Lennar (LEN),Pulte (PHM), Centex (CTX), NVR Inc. (NVR), MDC Holdings (MDC), Ryland (RYL), Hovnanian (HOV), Beazer (BZH)……
Jon C. Ogg
November 27, 2008
24/7 Wall St. has an open email distribution list with other similar briefs and stories where we summarize and preview data for those interested. It is usually sent out two to three times per week.
A Ten Year Storm In Home Prices
Robert Shiller, is a Yale University economist and co-developer of Standard and Poor’s S&P/Case-Shiller Home Price Indices, a highly regarded measurement of the housing market. He believes that home prices could go much lower beginning next year.
"There is a probability of a continuing decline for a period of years, bringing prices in many cities down in the 10s of percent," Shiller said in an exclusive interview with Reuters. "The bottom is hard to predict," he said. "I do not see it imminent and it could be five or 10 years too."
It is nice of Mr. Schiller to sugar coat the news.
While Schiller’s predictions are not in the majority, the overall view of the housing market does seem to be moving his way. Most studies show that markets like California and Florida have a long way to fall. High oil prices are not likely to help consumers fell flush and ready to go out and buy new houses.
If the prediction of a long, debt recession is correct, several industries could see awful wrecks among their most visible companies. Home builders like Beazer (BZH) and Hovnanian (HOV) could simply go under. The pressure on Countrywide (CFC) which says it would be badly hurt by another downgrade of its bonds, could end up in liquidation. Large commercial and investment banks could face devastating write-downs.
Other than that, everything is fine.
Douglas A. McIntyre
Pre-Market Stock News (November 6, 2007)
- Archer-Daniels Midland (ADM) $0.71 vs. $0.59 est.
- Asset Acceptance Corp. (AACC) -$0.05 EPS vs -$0.05 est.
- Beazer (BZH) cutting 1/4 workers and suspends dividend; sees new order down 50%.
- Church & Dwight (CHD) $0.69 EPS vs. $0.589 est.; sees 2007 EPS $2.42-2.44 vs. $2.36 consensus.
- Cooper Tire (CTB) $0.28 EPS vs $0.30 est.
- El Paso (EP) $0.22 EPS vs $0.23 est.
- Emerson (EMR) $0.78 EPS vs $0.75 est.
- Environmental Tectonics’ (ETC) Aeromedical division won two new contract awards in Middle-East worth a total of $20 million.
- Fuel-Tech (FTEK) $0.04 EPS vs. $0.06 est.; sees 2007 revenues $76-79 million vs. $79.7 million est.
- Gerdau AmeriSteel (GNA) $0.40 EPS vs $0.42 est.
- Google (GOOG) up $25 on analyst Sanford Bernstein raised target to $850.
- International Securities Exchange (ISE) $0.62 EPS vs $0.53 est.
- Kellwood (KWD) sets 2008 targets of $1.55 billion revenue from operations and sees $1.50 EPS.
- K-Swiss (KSWS) $0.36 EPS vs $0.34 est.
- Momenta Pharma (MNTA) announced FDA letter received says its M-Enoxaparin ANDA is NOT Approvable in current form.
- Nortel Networks (NT) $0.05 EPS after charges vs. $0.11 est.; Revenues $2.71 Billion vs. $2.77 Billion est.
- PetroQuest (PQ) $0.16 EPS vs. $0.14 est.
- PowerSecure $0.15 EPS vs. $0.17 est.
- QLogic (QLGC) announced a $200 million share buyback plan.
- Sun Micro (JAVA) up 1.5% after earnings, despite lackluster report.
- TheStreet.com (TSCM) $0.13 EPS vs $0.12 est.; Revenues $16.1 million vs. $16.3M est.
- Urban Outfitters (URBN) sees revenues for Q3 at $379.3 million versus $374.5 million est.; s-s-s +8% for the quarter.
- Valero (VLO) $1.40 EPS vs $1.35 est., but had lowered preliminary numbers.
- Watson Pharma (WPI) $0.33 EPs vs $0.30 est.
Jon C. Ogg
November 6, 2007
Media Digest 11/6/2007 Reuters, WSJ, NYTimes, FT, Barron’s
According to Reuters, Google (GOOG) launched a new mobile phone initiative with a number of handset makers and cellular carriers.
Reuters writes that an analysts covering the financial industry expects more write-dwons on mortgage related securites when Q4 earnings are announced.
Reuters writes that Sony’s (SNE) US consumer electronics chief see strong holiday sales of TVs and cameras.
Reuters writes that Sun (JAVA) reported revenue that missed Wall St. estimates.
The Wall Street Journal reports that investment banks plan to sell $10 billion in Chrysler bonds, a potential comeback for LBO debt.
The Wall Street Journal reports that striking Hollywood writers want a bigger piece of digital revenue while consumers expect costs of online content to drop.
The Wall Street Journal writes that Countrywide (CFC) extended stock options expiration dates for eight executives.
The Wall Street Journal writes that Time Warner’s (TWX) new CEO is open to restructuring that could change the face of the company.
The Wall Street Journal writes that the FCC sent detailed questionnaires to XM (XMSR) and Sirius (SIRI) seeking more data as it examines a merger of the companies.
The Wall Street Journal writes that Beazer’s (BZH) problems are getting worse due to write-offs and costs.
The New York Times writes that Ford (F) indicated it would have to cut more costs if sales did not improve.
Barron’s writes that an increase in the price of Alibaba shares could drive the stock in one of its owners, Yahoo! (YHOO) up.
Douglas A. McIntyre
October Short Interest For NYSE Stocks
Following is the short interest in stocks of major companies traded on the NYSE. Figures are as of October 15 and compare to numbers on September 28, 2007. Most of the large increases and total short positions were in home builders, mortgage companies, and retailers.
Major telecom companies saw share sold short fall.
Largest Short Positions
Company Shares Sold Short
Ford (F) 171.8 million shares short
Countrywide (CFC) 79.8 million
Qwest (Q) 78.3 million
AMD (AMD) 75.9 million
Time Warner (TWX) 69.9 million
Best Buy (BBY) 64.9 million
EMC (EMC) 64.0 million
GE (GE) 62.3 million
Washington Mutual (WM) 59.2 million
GM (GM) 56.2 million
Micron (MU) 54.4 million
Home Depot (HD) 54.2 million
Altria (MO) 52.4 million
Sprint (S) 51.3 million
Largest Increases In Short Position
Company Increase In Shares Sold Short
Washington Mutual 12.5 million increase
EMC (EMC) 11.2 million
Target (TGT) 5.7 million
Pulte (PHM) 5.4 million
Beazer (BZH) 5.2 million
Time Warner 5.0 million
Largest Decreases In Short Position
Company Decrease In Shares Sold Short
Wells Fargo (WFC) 9.2 million decrease in shares short
Wachovia (WB) 8.4 million
McDonald’s (MCD) 6.6 million
AT&T (T) 6.1 million
Qwest (Q) 6.1 million
Ford (F) 5.8 million
Pfizer (PFE) 4.5 million
Kraft (KFT) 4.4 million
Merrill Lynch (MER) 3.8 million
GE (GE) 3.6 million
Data from NYSE and WSJ
Douglas A. McIntyre
Will One Of The Home Builders Go Bankrupt? (DHI)(HOV)(BZH)(PHM)
The housing situation in the US may be getting bad enough so that one or more of the major home builders could face Chapter 11, especially if the downturn goes deep into 2008.
Bloomberg writes that "at least five of the top 15 homebuilders by revenue are burdened with too much debt, Agency Trading’s Barron said. They are Hovnanian (HOV), California-based Standard Pacific(SPF), WCI (WCI), Beazer Homes (BZH), and TOUSA Inc (TOA)."
“We would not be surprised to see one or more of the larger homebuilders become insolvent if current pricing trends persist into 2008,” Mark A. Morgan, senior equity financial analyst with New York-based Rochdale Securities LLC. Some media reports already indicate that several of these companies are in negotiations with their banks to improve payment terms on debt.
But, banks may not be able to help the larger homebuilders, especially in a market where investors are watching the banks themselves. Huge write-offs at Citicorp (C) and other big US financial companies have put pressure on managements at the firms to be more prudent.
If share price fall-off is any indication, Beazer and Standard Pacific are the most likely homebuilders to file for bankruptcy. While shares in most of the larger companies in the sector are off about 40% over the last year, shares in these two firms are down closer to 80%.
If one company files for Chapter 11, does it cause a huge shareholder stampede out of all of the others? Probably. Which means by early 2008 stocks in all of these companies could all be down by 80% from their late 2006 peaks.
Douglas A. McIntyre
The Business Day In Global Warming (KSS, MAG, FPL, BZH, PRRY, CPNLQ, DELL, ING)
Kohl’s Department Stores (NYSE:KSS) is activating a solar rollout to its 63 California locations.
Magnetek, Inc. (NYSE:MAG) has received orders from United Technologies (NYSE:UTX) for PCS-2C and -2D fuel cell power inverters totaling 2.4 megawatts in a contract valued at approximately $1.3 million scheduled for delivery over the coming 8 months.
FPL Group, Inc. (NYSE:FPL), the Florida Power & Lighting parent, announced today a $2.4 billion investment program aimed at increasing U.S. solar thermal energy output and reducing carbon dioxide emissions that contribute to global warming: up to $1.5 billion in new solar thermal generating facilities; Investment of up to $500 million by FPL to create a smart network that will provide its 4.5 million customers with enhanced energy management capabilities; and a new consumer education program and new products that could increase renewable energy resources by at least $400 million over the first five years of the program.
Beazer Homes (NYSE:BZH) becomes a principal sponsor for Georgia Tech Solar Decathlon 2007. For some reason, it seems they’ll still have bad home sales.
Planet Resource Recovery, Inc. (PINK SHEETS: PRRY) announced today that it has delivered its first shipment of PetroLuxus™ 600 for the treatment of biodiesel that will streamline the production of biodiesel in a cost-effective and time-efficient manner.
Calpine Corporation (Pink Sheets: CPNLQ) received final approval today from the California Energy Commission (CEC) to construct the 600-megawatt Russell City Energy Center in Hayward, Calif.
Dell (NASDAQ:DELL) today said it will become the first computer maker to neutralize its greenhouse gas emissions. CEO Michael Dell announced a series of measures to shrink the company’s carbon footprint and offset its greenhouse gas emissions in 2008.
ING (NYSE:ING) announced today the next phase of its worldwide sustainability commitment by agreeing to
purchase clean, emission-free wind energy credits for its U.S. operations.
- While the United Nations meets, Industry Executives Speak Out onClimate Change and Energy Security in the Latest Issue of World EnergyMagazine
- September 25 Business Day in Global Warming
- Oil Baron T. Boone Pickens bullish on oil and alternative energy
- Goldman Sachs raised super-spike oil price band to $135.00/barrel
Jon C. Ogg
September 26, 2007
As a reminder, whether you prefer the term "Global Warming" or"Climate Change" is not the issue as far as 24/7 Wall St. covers it.Green business has become big business, and this affects many publiccompanies today.
UBS Starts Coverage of Homebuilders (BZH, CTX, DHI, HOV, KBH, MTH, PHM, RYL, SPF, LEN, LOW)
Lennar posted earnings and as expected these were just ugly. The loss was $3.25 per share after charges, although this includes charges of $3.33 per share. Revenues were $2.34 Billion. Lennar’s home sale revenue fell 44% to $2.2 billion. Cancellation rate was 32%; New orders fell 48% to 5,804 homes. And if this wasn’t foreseeable, the company will be having more job cuts in the coming quarter. Lennar shares are indicated down $1.30 to 41.70 at what will be another set of 52-week lows.
UBS has initiated coverage of homebuilders:
- Beazer (BZH) started as Sell;
- Centex (CTX) started as Buy;
- D.R.Horton (DHI) started as Sell;
- Hovnanian (HOV) started as Neutral;
- KB Home (KBH) started as Buy;
- Lennar started as Sell;
- Meritage (MTH) started as Neutral;
- Pulte (PHM) started as Sell;
- Ryland (RYL) started as Neutral;
- Standard Pacific (SPF) started as Sell.
Lowe’s (LOW) earnings warning last night is also pulling the related and tertiary sector down.
Jon C. Ogg
September 25, 2007
Mortgage Madness Stocks Win The Day’s Top Performers (MTG, CFC, C, BSC, KBH, CTX, C, GS, BX, MBI, TMA, BZH, WM, LEH, HOV)
We reviewed our different portfolios of key stocks to see which ones performed the best today, and it wasn’t just the financials as a general class. At the end of the day, Jim Cramer’s old list of stocks from his "Mortgage Madness Portfolio" took the cake.
This is the list: MGIC Investment (MTG), Countrywide (CFC), Bear Stearns (BSC), KB Home (KBH), Centex (CTX), Citigroup (C), Goldman Sachs (GS), Blackstone (BX), MBIA (MBI), Thornburg (TMA), Beazer (BZH), and Washington Mutual (WM).
We ran the screen right before the close, but take a look at how this portfolio did after the 50/50 dual rate cut from the FOMC today (Ticker; Price; Changes ($,%); 52-week range):
MTG $33.55 +$2.75 (+8.93%) $21.00-70.10
CFC $19.91 +$0.64 (+3.32%) $15.00-45.26
BSC $119.87 +$4.49 (+3.89%) $99.75-$172.61
KBH $29.27 +$1.15 (+4.09%) $25.95-$56.08
CTX $29.22 +$1.38 (+4.96%) $25.59-58.42
C $48.33 +$2.30 (+5.00%) $44.66-57.00
GS $200.53 +$12.92 (+6.89%) $157.38 – 233.97
BX $24.36 +$0.71 (+3.01%) $21.30 – 38.00
MBI $61.95 +$4.47 (+7.78%) $48.95 – 76.02
TMA $13.50 +$0.30 (+2.27%) $7.49 – 28.40
BZH $11.37 +$1.90 (20.06%) $8.10 – 48.60
WM $37.70 +$1.74 (4.84%) $31.27 – 46.38
If you added in Hovnanian (HOV) for it saving itself with a homebuilder firesale last weekend and add in Lehman Brothers(LEH) because of its better than expected (and far less bad) earnings from this morning, then this entire portfolio would be the hottest smoking portfolio.
This blew past the tech stocks from Cramer’s old "NEW FOUR HORSEMEN OF TECH" and it blew well past our list of defensive stocks we gave for crummy markets.
Jon C. Ogg
September 18, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Bush Home Loan Speech Bombs
George Bush promised to do his best. And, that was the main message in his speech on the troubles in the sub-prime market. The address was not even long on promises. Congress will work on legislation to help home owners. Freddie Mac and Fannie Mae may help. And, anyone who committed fraud while making a home loan will be hunted down like a dog.
The best evidence for the lack of enthusiasm over Mr. Bush’s talk is that mortgage companies and homebuilders are trading at their intraday lows. Beazer (BZH), which was as high as $11.04 today now trades at $11.07, up 1.8%. Countrywide Financial (CFC), which hit $20.95, is now up only .4% at $18.73.
Anyone who bought at these stocks at the open is taking a beating.
Douglas A. McIntyre
Beazer, Countrywide And The Housing Stock Sucker Rally
A number of home mortgage and home building stocks including Beazer (BZH) and Countrywide (CFC) are up ahead of President Bush’s speech on what he will do to improve the sub-prime mess.
Of course, since no one is sure what he will say, or if any of its will require approval from Congress, putting a new number on the value of these companies is just a guess.
And, guesses can be wrong.
Douglas A. McIntyre
Cramer Launches “Cramer’s Mortgage Madness Index”
On tonight’s MAD MONEY on CNBC, Jim Cramer said that today and this week proves sometimes you can’t be too bullish. You need a measure for an ‘all-clear’ signal to see when the market is safe to go back into. Cramer thinks Bernanke should cut rates, particularly with more spending in Iraq than helping here for those about to lose their homes. Here are the tickers for his news "CRAMER’S MORTGAGE MADNESS INDEX":
MGIC Investment (MTG), Countrywide (CFC), Bear Stearns (BSC), KB Home (KBH), Centex (CTX), Citigroup (C), Goldman Sachs (GS), Blackstone (BX), MBIA (MBI), Thornburg (TMA), Beazer (BZH), and Washington Mutual (WM).
Cramer said he’s not saying these are buys and aren’t sells, not yet anyway. This index is just representative of the names that you have to watch because if these are still falling then it means there isn’t a stabilizing market or group.
Jon C. Ogg
August 3, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Beazer Homes (BZH): Sick Of Being Bankrupt
Big hedge-fund Citadel says it upped its stake in home-builder Beazer (BZH) to 5.7%. Just in time.
Investors who go a piece of Beazer after it was pulverized on bankruptcy rumors could have picked up shares yesterday at $8.10. But, the bankruptcy only lasted a few minutes. Once Beazer shot down the talk, the shares moved back up and now trade at $12.90, up 12% on the day.
The Citadel news helped.
The whole incident has to make Wall St. wonder how a rumor like the Beazer one gets started, and why enough traders believe it to drive the stock from $13.40 to $8.10 in just a few minutes.
Seems like someone wanted the shares down, at least for a moment.
Douglas A. McIntyre
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