Timing Is Everything with the Builders

The homebuilders have been whipped around big time over the last few weeks, with potential GSE intervention the latest catalyst for fast money to trade around. No doubt someone will go bankrupt before this is over, and everyone seems to be sitting on their hands waiting for this event to take place. 

And other people were a bit early in building positions. If I were ValueAct i would continue to scale in here, but what a difference a week makes. If they are committed to this position they might as well ante up a little more. A serious analysis of balance sheet issues is mandatory, as well as any minefields that might be off the balance sheet. I trust they have done some good work, but were buying it $4-$5 higher a few weeks ago..

Wayne Nef is sticking to his thesis on the builders, and still hates them. Fair enough Wayne, but I am keeping my eye on Freddie and Fannie, they could be the key to the builders.

The jawboning might not end for a while, but they are real hot potato’s in Washington. And this is the most hated sector in the market.

One man’s meat is another man’s poison.

Crazy, isn’t it?

ValueAct SmallCap Discloses 5.2% Stake in Homebuilder Standard Pacific
StreetInsider.com 13-D Tracker
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The content contained represent 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 SPF

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