Portfolio Rebalancing

Robert Toll is on fire…

NEW YORK, March 7 (Reuters) - Luxury home builder Toll Brothers Inc. said on Wednesday it would “burn through” its inventory in many markets in four or five months.

Toll also said the impact of rising default rates in the subprime mortgage market wouldn’t be “too great” for luxury builders like Toll. Reuters
We will wait for him to show up as a buyer...his public statements just don’t seem to match his trades in the stock:

Back at the peak of the real estate market, when real estate agents and Wall Street shills were claiming the good times would just keep going, the Tolls took one look at the future ... and started shoveling shares out the door as fast as they could swing a spade.In total, they sold nearly $470 million worth of stock in their company between November 2004 and September 2005, filings with the Securities and Exchange Commission show. TheStreet.com

Wayne was looking for a bounce yesterday…

Again, I believe we could see a short dead-cat bounce here in the next week or so. I would use any bounce to short into strength. Other stocks I would look to short into strength are: TOL, short into a rally ideally at or above $31 target $24; CTX, short into a rally to the $49 - $50 area, Target $37; and RYL, short in the $50 area, near-term target $37. March 6, 2007

We will leave Bob alone for a while.  And that is the truth.
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned above.

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