On today’s video from TheStreet.com, Cramer said there is definitive value on the land that has been optioned by homebuilders. All of those options from the last 3 years were bad, but now you can at least try to quantify how bad. Centex (CTX) isn’t one to buy on its own yet in the horrible sector, but Cramer noted that this one wasn’t too bad on its land markdowns and land options it will have to write off.
He thinks right now there is not real hope for Beazer (NYSE:BZH), he doesn’t agree that either Lennar (NYSE:LEN) or Toll Brothers (NYSE:TOL) are in clear, and he thinks KB Homes (NYSE:KBH) is still in a bad spot too. These are all bad, but you are starting to figure out how bad these are on the books. He’d actually do a pairs trade where you are long Centex (NYSE:CTX) and short one of the others….
On the buyback front in his technology video segment Cramer noted Cisco Systems’ (NASDAQ"CSCO) buyback announcement with 5-days in the quarter. One buyback he noted was Corning (NYSE:GLW) from last week, but he said the quarter wasn’t that great this week. Cramer also said that 15 of 16 years you would have made money buying here on the calendar and selling later in year, and he still endorses owning the "New 4 Horsemen of Tech."
Jon C. Ogg
July 27, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.