Bloomberg: Hovnanian (HOV) May Fail Absent Miracle
One of my incorrect calls in late 2007 was a series of good sized
homebuilders to go out of business. A few smaller names have but no real major national brands. The banks have been extremely lenient with the
homebuilders, changing covenants and the like - so the rationalization of the system has not taken place. However, according to
this Bloomberg story - one of the national names -
Hovnanian (HOV) might be on the emergency table.
If we look at the chart, things do not look so rosy but we might have a heck of a bounce first (nice double bottom forming for those with brass
cajones) ;)
- Hovnanian Enterprises Inc., New Jersey’s largest homebuilder, could go out of business “absent a miracle” bolstering its equity and cash reserves, bond analyst Vicki Bryan said today. Hovnanian denied it was in trouble.
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