On the strength of upgrades yesterday from Citigroup Homebulder Analyst Stephen King and then an “interesting” interpretation of today’s pending home sales number, homebuilders have staged a nice 7% bounce over the past 2 days (Chart). The bulls sure are…
There was an article in Barron’s this weekend that resonates with my view of what’s going on in housing and how it will play out in the coming years including its effects on the overall economy. The article, “Getting Ready…
The Sacramento Bee reported this morning that local homebuilder, Dunmore Homes, which has sold almost 2000 homes locally since 2001 and has been in business since 1954 has been sold. This after The Sacramento Business Journal reported on Friday (subscription…
There’s a lot of news out this morning that has to make you a little uneasy if you’re a bull. Target (TGT) reduced its same store sales forecast for September from 4-6% to 1.5-2.5% (subscription required), raising questions about the…
Funny cartoon on the Big Picture. And a graphic that goes along with it from Fortune.
The Dow Jones Real Estate Index peaked in February and is down about 20% since then. Because the stock market is a leading indicator and a similar peak in homebuilder shares in the Summer of 2005 coincided with the peak…
“The fallout of the subprime meltdown on financial services companies that hold some of the debt creates some risk to earnings. The financials make up over 25% of earnings for the S&P 500, so a series of disappointments in financials…
“Negative sentiment took a firm hold of the [subprime bond] market” this past week. “We think the weakness in the ABX will continue.” – JP Morgan in a report from Friday June 15 In “Ills Deepen in Subprime Bond Arena”…
“No question that the bottom of the market hasn’t hit yet.” – Esmael Adibi, Economist, Chapman University in Orange County “I think we’re going to be dealing with this all the way through 2008.” – Jack Haynes, Executive Vice President,…
In other news from today, home furnishings retailer Bed, Bath & Beyond (BBBY), an $11 billion, S&P 500 company lowered its outlook for its 1st quarter ended Saturday June 2. It expects to earn between 36 and 38 cents per…